The Coinbase direct stock listing could be a rite of passage for the blockchain and cryptocurrency industry, and the announcement on March 20 by the United States Commodity Futures Trading Commission of a $6.5-million fine against Coinbase for “wash trading” and filing misleading information probably won’t do more than postpone by a few weeks the distinction of being the first crypto-native corporation to be listed on a major U.S. stock exchange.
But questions surround Coinbase’s upcoming debut on the Nasdaq exchange: Is the crypto exchange really worth the $100 billion — as suggested by a pre-IPO public auction? Is its timing propitious? Are the firm’s revenues too dependent on the market price of Bitcoin (BTC) and Ether (ETH)? And are its profit margins really sustainable — is this really an industry breakthrough event, and if so, which crypto enterprise might be next to test Wall Street’s waters?
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