Crypto exchange Coin Check is looking to follow in Coinbase’s footsteps and wants to be listed on the Nasdaq. The firm is aiming to complete a merge with a special acquisition company by July of next year so it can be listed on the stock exchange.
Coin Check Wants to Be Like Coinbase
Coinbase – the western world’s largest and most popular cryptocurrency exchange – started a trend in April 2021 that many new companies apparently want to copy. The company got itself listed on the Nasdaq, becoming the first crypto exchange to do so, and began offering stock shares to retail investors in the U.S. and anywhere else in which people wanted to put their money into the growing company.
While things ultimately began on a strong note, it appears they’ve come to a standstill, as Coinbase has repeatedly provided earnings reports over the past few quarters showing that it’s experiencing weaker profits than anticipated. This is likely due to the falling price of bitcoin, the world’s number one digital currency by market cap, which the company is heavily tied to.
Bitcoin has fallen by about 70 percent since trading at a new all-time high of about $68,000 per unit last November. The digital currency space has also lost roughly $2 trillion in overall valuation in just the past few months. It’s a sad and ugly sight to see.
As a result of these consistent crashes, Coinbase has been pushed into a rough position. It’s stock shares – which initially began selling for more than $300 – have fallen into the $50 range, and it doesn’t look like the company is in a very strong arena. The firm has also been forced to let go of many staff members when initially, it was hoping 2022 could be a year in which its employee numbers were increased significantly. It looks like that’s not going to happen.
Nevertheless, Coinbase is seen as a mainstream symbol of status for the crypto industry, and other companies are looking to emulate what they still consider to be a high degree of success. Thus, firms like Coin Check are working to secure stock listings for themselves in the coming future.
In an SEC filing, Coin Check wrote the following:
In addition to crypto asset exchanges, Coin Check has expanded its business area to include NFTs, metaverse, and web3 while keeping fixed costs low and controlling advertising expenses in response to market conditions.
A Large Company
The firm has also stated it’s partnering with an enterprise called Thunder Bridge Capital Partners as a means of building its crypto offerings and getting global investors involved. The company would also grow its staff to ensure it had the right staff members to handle its future expansion.
In March of this year, Coin Check was valued at more than $1 billion.