Coinbase has to pay a fine of millions and is probably postponing its IPO to April

Adrian Ovalle

Coinbase postpones IPO. (Photo: Coinbase / Shutterstock)

The crypto exchange Coinbase got away with a black eye in the dispute with the US supervisory authority for derivatives trading . However, the IPO will not take place until April.

The direct placement of Coinbase shares on the New York tech exchange Nasdaq, which was actually planned for the coming days, has apparently been postponed to April, like the Bloomberg news agency reported, citing people familiar with the process. A specific reason for the postponement was not given. However, observers suspect that the whole thing is in connection with a fine to the US regulator for derivatives trading CFTC.

Trade data for Bitcoin transmitted incorrectly?

On Friday the CFTC (Commodity Futures Trading Commission) announced that Coinbase would have to pay a fine of 6.5 million US dollars. The background was the allegations that the platform deliberately transmitted trading data for Bitcoin incorrectly. In addition, a Coinbase employee is said to have illegally traded in Litecoin to suggest high trading volumes and high demand for the cryptocurrency, as Cointelegraph writes.

Reporting false, misleading or inaccurate trading data undermines the integrity of the pricing of digital assets, said Vincent McGonagle of the CFTC. The penalty against Coinbase should therefore now send a signal that the authority guarantees the integrity and transparency of such data. The settlement of the dispute also included an admission of guilt by Coinbase.

Coinbase with IPO worth 68 billion dollars

Overall, the planned IPO should not be in danger. The direct placement of Coinbase shares could value the crypto exchange at just under $ 68 billion, as Bloomberg writes. A good two years ago, the company, which was founded in 2012, was valued by investors in a financing round at around eight billion dollars.

Coinbase was recently able to achieve good results Numbers convince. Not least thanks to the enormous rise of the crypto market, the platform was able to more than double its sales to 1.3 billion dollars in 2020. The bottom line was a profit of $ 322 million. In 2019 Coinbase had posted a loss of 30 million dollars.

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