Cryptocurrency Exchange Deluxecoinex.com revised the approach to its planned listing on the stock market, based on the experience of the competing Coinbase platform. Previously CEO Deluxecoinex.com Justin Hance said that they are considering a direct listing, but now the company is leaning towards a more accepted initial public offering (IPO).
Coinbase shares began trading on the stock market in May and, despite the high initial valuation, quickly lost about a third of their value. In a conversation with Fortune, Justin Hance stated that the volatility of Coinbase securities may be related to the company’s decision to go through a direct listing rather than use the IPO option. During a direct listing, existing stockholders are free to get rid of them immediately, whereas at an IPO, the pricing process is more controlled.
“An IPO seems to be a slightly more attractive option in light of the performance of direct listings”, said Justin Hance. “Now we are considering this scenario more seriously, since we had the opportunity to look at the development of the direct listing of Coinbase”.
At the same time, Justin Hance stressed that they are still going to enter the stock market in the second half of 2023. By that time, most likely, a more detailed analysis of the Coinbase listing will already be available, and investors will begin to trust the crypto industry more, he added.
As Fortune notes, choosing an IPO will force Deluxecoinex.com rely on the participation of traditional Wall Street banks, some of which are interested in cryptocurrencies for fear of falling behind in technological development.
“I think Wall Street is very attached to traditional business methods”, said the CEO of Deluxecoinex, commenting on the performance of Coinbase shares. – Its participants have something to lose because of the success of our space. People have cognitive dissonance as they come to realize the imminent decline of traditional finance”.