Coinbase Goes Public: Behind the Scenes of a Crypto Giant’s Market Debut

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The long-anticipated public listing of Coinbase has finally moved from rumor to reality. On December 7, Coinbase Global officially announced it had submitted an S-1 registration statement draft to the U.S. Securities and Exchange Commission (SEC), marking a pivotal moment not just for the company, but for the entire cryptocurrency industry.

As the first major crypto exchange to step into the traditional financial spotlight, Coinbase’s journey reflects both the maturation of digital assets and the complex interplay between innovation, regulation, and global capital. With Bitcoin surpassing historic highs and institutional adoption accelerating, the timing couldn’t be more strategic.

But beneath the surface of this landmark move lies a web of questions: How will Coinbase go public? What is its true valuation? And who are the key players—especially international investors—fueling its rise?

The Long Road to Going Public

Coinbase’s path to the public markets has been anything but sudden. Rumors of an IPO began circulating as early as 2018, when CNBC’s Ran NeuNer reported that Coinbase was preparing for a $500 million IPO, split into two rounds with dual-class shares.

At the time, the exchange claimed around 25 million users, with 600,000 active traders. Projected revenue stood at $1.3 billion, with profits hitting $456 million—up from $380 million in 2017. Notably, 80% of revenue came from retail users, highlighting its broad consumer appeal.

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Yet, those plans were quickly derailed. The crypto winter of 2018 hit hard—Bitcoin plummeted, trading volumes dried up, and market sentiment turned sour. Amid the turmoil, Coinbase’s COO Asiff Hirji publicly clarified that there were no immediate IPO plans.

Fast forward two years: Bitcoin reclaimed momentum, breaking past $23,000 by late 2020. Against this bullish backdrop, Coinbase quietly reactivated its listing strategy, submitting its S-1 filing in December—this time with far greater implications.

Valuation: From $80 Billion to $280 Billion?

Many media outlets still cite Coinbase’s **$8 billion valuation from 2018**, but that figure is outdated. Back then, Bitcoin hovered near $5,000. Today’s market dynamics demand a fresh assessment.

In July 2020, financial analyst Lex conducted a detailed revenue-based model using a conservative 20x multiple across Coinbase’s core business lines—trading fees, custody services, and ancillary products. His estimate? $15 billion.

But more aggressive analyses have emerged. Mira Christanto of Messari performed a deep dive into Coinbase’s operational data in December 2020, projecting a potential $28 billion valuation. Her model factored in:

While exact figures remain speculative until official disclosures, one thing is clear: Coinbase is no longer just a crypto startup—it's a fintech powerhouse positioned at the intersection of digital assets and mainstream finance.

IPO or Direct Listing? The Strategic Crossroads

Despite widespread use of the term “Coinbase IPO,” the company has not confirmed its listing method. Submitting an S-1 form is required for both traditional IPOs and direct listings—a nuance often overlooked.

However, evidence suggests Coinbase may favor a direct listing, following in the footsteps of Spotify and Slack. This approach offers several advantages:

Jeff Roberts, author of King of Crypto, noted in a podcast that direct listing aligns with Coinbase’s anti-Wall Street ethos. “It’s a way of saying no to banks and lawyers who profit off traditional IPOs,” he said.

Fred Ehrsam, Coinbase co-founder, even floated the idea of a blockchain-based tokenized listing—an innovative concept, though likely too radical for current SEC regulations.

Ultimately, whether through traditional IPO, direct listing, or another hybrid model, Coinbase’s choice will signal its stance on decentralization vs. institutional integration.

Global Backers: The Hidden Network Behind Coinbase

Behind every successful tech unicorn is a constellation of visionary investors. Coinbase is no exception.

According to Crunchbase, the company has raised $547 million across five funding rounds, with 59 investors globally. Top-tier names include:

But one name stands out: IDG Capital, a Chinese venture firm that backed Coinbase during its 2012 Series A round.

Li Feng, former IDG partner and now founder of Frees Fund, confirmed the early bet on Coinbase, calling Bitcoin “a thrilling new frontier.” IDG also invested in Ripple, Circle, Bitmain, and imToken—making it one of Asia’s most influential players in blockchain innovation.

Other notable backers include Serena Ventures—the investment arm of tennis legend Serena Williams—though Coindesk later observed her fund removed Coinbase from its portfolio listing in 2020.

There are also unconfirmed reports that GIC, Singapore’s sovereign wealth fund, participated in Coinbase’s 2018 round—a sign of growing sovereign interest in crypto infrastructure.

Controversies and Challenges: A Legacy Under Scrutiny

Coinbase’s growth hasn’t been without controversy.

In 2016, CEO Brian Armstrong criticized Bitcoin Core developers, calling their dominance a “systemic risk” and advocating for a more pluralistic development model. This stance alienated parts of the open-source community and fueled accusations of centralization.

Later, Coinbase stirred backlash by listing Bitcoin Cash (BCH) on GDAX (now Coinbase Pro) ahead of schedule in December 2017. Prices surged dramatically—some reports noted price gaps of over $6,000 compared to other exchanges.

Investors filed class-action lawsuits alleging insider trading and market manipulation, claiming employees profited from advance knowledge. Though dismissed by Judge Vince Chhabria, the allegations resurfaced in 2018 with new claims of price inflation via restricted sell orders.

Even more contentious was Coinbase’s reported deal with U.S. agencies like the DEA and IRS to provide blockchain analytics tools. While intended to combat illicit activity, many users saw it as a betrayal of crypto’s privacy principles.

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In June 2020 alone, over $200 million flowed out of Coinbase wallets following news of government data access—proof that compliance comes at a cost to community trust.

The Bigger Picture: Crypto Goes Mainstream

Coinbase’s public debut symbolizes a turning point. What began as a niche experiment in decentralized money has evolved into a legitimate asset class embraced by institutions—from MicroStrategy to PayPal.

As Bitcoin gains traction as both store of value and speculative instrument, platforms like Coinbase serve as critical gateways for mass adoption.

Yet challenges remain: balancing regulatory compliance with user privacy, navigating volatile markets, and maintaining credibility amid growing scrutiny.

Frequently Asked Questions (FAQ)

Q: Is Coinbase going public via IPO or direct listing?
A: As of now, Coinbase has not confirmed its method. It has filed an S-1 form, which supports either option. Recent trends suggest a direct listing is likely.

Q: What is Coinbase’s current valuation?
A: While no official number exists yet, analyst estimates range from $15 billion to $28 billion based on revenue models and market conditions.

Q: Did Chinese investors back Coinbase?
A: Yes. IDG Capital was an early investor in Coinbase’s 2012 Series A round and remains one of the most active Chinese VCs in blockchain.

Q: Why did users withdraw funds from Coinbase in 2020?
A: Following reports that U.S. agencies accessed Coinbase’s blockchain analytics tools, over $200 million was withdrawn due to privacy concerns.

Q: Has Coinbase faced legal issues?
A: Yes. It faced lawsuits over alleged insider trading related to Bitcoin Cash listings, though courts dismissed the claims.

Q: Can I buy Coinbase stock now?
A: Not yet publicly. Once listed—either via IPO or direct listing—shares will be available on major exchanges.

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Coinbase’s journey from garage startup to Wall Street contender mirrors the broader evolution of cryptocurrency itself—fraught with risks, rich with promise, and increasingly impossible to ignore.