After 8 years of hard work, Coinbase finally applied for listing!
Behind the successful listing of Coinbase, there are still many doubts.
Shake away the fog of capital, Deep Tide TechFlow deeply analyzed the secrets behind the listing of Coinbase.
The dream of going public is not two or three days
There have been rumors about Coinbase listing.
The IPO will be conducted in two rounds, including preferred stock and common stock, with different rights on the same stock.
80% of the revenue comes from ordinary users and 15% comes from institutional accounts.
“The listing of Coinbase is a very ridiculous thing.”
Two years later, on December 17th, as Bitcoin broke new highs, Coinbase reported another impact on the listing, which was self-evident.
Valuation may reach 28 billion US dollars
In some media statements, Coinbase is now valued at US$8 billion, but this is actually an outdated data.
Does the $8 billion valuation look down on Bitcoin and Coinbase too much?
By analyzing the income of trading business, custody business, and other businesses, and calculating with a 20 times REV valuation, it believes that Coinbase was valued at approximately US$15 billion at that time.
Messari researcher Mira Christanto has thoroughly studied some business and transaction data of the cryptocurrency exchange Coinbase and believes that Coinbase’s potential valuation is 28 billion U.S. dollars.
However, the valuation of Coinbase is ultimately left to the market to decide.
It only needs to continuously attract people to trade an emerging asset that is considered attractive by the younger generation: Bitcoin.
Do you want an IPO?
Coinbase has not yet made it clear that it will go public through an IPO.
Regardless of whether it is an IPO or a direct listing, there must be an S-1 filing.
In July 2020, Reuters first reported that Coinbase is preparing to go public
Compared with an IPO, a direct listing will save Coinbase tens of millions of dollars in investment banking fees.
From Spotify to Slack, technology unicorns have begun to abandon IPOs and enter the public market by direct listing, which has gradually become a trend.
Choosing a direct listing rather than an IPO reflects Coinbase’s personality against Wall Street.
Coinbase co-founder Fred Ehrsam (Fred Ehrsam) once suggested that Coinbase’s listing can be achieved by providing digital tokens on the blockchain.
“There is no news, it will be traditional, direct or token form.”
The Chinese capital behind Coinbase
Apart from the company’s team, the biggest beneficiaries of a company’s listing are the investors behind it.
The five main investors are A16Z, Tiger Fund, IVP, DFJ (Defengjie), and Bank of Tokyo-Mitsubishi UFJ
Among them, a few investors deserve special attention.
In this round of Coinbase investors, there is also Chinese capital, that is IDG Capital.
Secondly, the famous female tennis player Serena Williams.
In 2019, Bloomberg broke the news that one of the world’s largest sovereign wealth funds, the Singapore Government Investment Corporation, had participated in investing in Coinbase in 2018, although Coinbase did not disclose relevant information.
Coinbase controversy history
Judging from the past history, Coinbase does have big ambitions.
Coinbase decided to support Bitcoin XT, which angered a group of Bitcoin evangelists at the time.
Since then, Bitcoin’s other fork, BCH, has also plunged Coinbase into controversy and even went to court.
After that, investors initiated a class action lawsuit, believing that there was insider trading, and employees built a rat warehouse in advance for profit. Later, the accusation was dismissed by U.S. District Judge Vince Chhabria.
Drive up the price and make the difference
“The purpose of Coinbase is to lower the price of BTC, raise the price of BCH, encourage users to conduct more transactions, and improve their own profitability.”
Recently, Coinbase’s too close relationship with the government has also plunged it into a whirlpool of controversy.
A large number of investors left Coinbase.
For Coinbase, the compliance permitted by the government is a kind of liberation and freedom, and it also brings shackles.
