I wonder if they will be traded exclusively on a traditional exchange like Nasdaq or NYSE. It would be disappointing if they couldn't do some kind of token thing so their shares could be traded with their own technology.
Trading crypto-securities or securities tokens requires completely redundant unnecessary infrastructure, being run by multiple firms registered with various regulators, and then lack liquidity as not only are the custody regulations unclear, FINRA is completely stonewalling any clarity or approvals, while the concept also lacks product market fit because nobody - market makers, investors - gives a crap about it, let alone the limited throughput of any mature enough settlement later.
There is no point in doing that when everyone else can just go anonymous and list directly on Uniswap in 30 seconds. It's just utterly silly trying to shoehorn a compliant offering into that mess.
I don't plan to buy Coinbase stock, so in that sense it doesn't matter to me at all. But I'm pretty sure Coinbase's customers care. I doubt anyone would want them to trade exclusively as a token, but maybe they could do some shares on Nasdaq and some in token form. If anyone would figure out the regulatory hurdles for that, it's Coinbase. Their whole business model is being the most regulated and rule-following bridge between traditional finance and cryptocurrencies.
Which is exactly why there is no product market fit for that. Nobody wants to use that, a couple ideological enthusiasts want to see it being pursued, but nobody actually wants this.
I mean, that criticism applies equally well to the whole crypto market. If you don't like their business, that's fine. But their customers disagree with you.
No, it doesn't. The crypto markets have plenty of rivals to coinbase that are purely software contraptions with no entity incorporated around them. the distinction is that there are securities tokens exchanges, they're empty due to the aforementioned problems. T-Zero, Patrick Byrne, Overstock. There is nothing to prove. You projecting on their customers offering nothing to Coinbase except a "huh, how about that" is not worth doing. Shareholders won't care, customers won't care, nobody will use.
