The recent announcement of Japanese exchange Coincheck’s plan to join Coinbase as one of the two publicly listed exchanges in the United States has sparked interest and speculation in the crypto community. The company is set to complete its listing on the Nasdaq through a partnership with special purpose acquisition company (SPAC) Thunder Bridge Capital Partners IV (THCP) by the second or third quarter of this year.
Unlike traditional initial public offerings (IPOs), Coincheck is opting for a reverse merger with a SPAC to go public. This method allows the company to bypass the traditional IPO process and gain access to the public market faster. However, the decision to use an SPAC has raised concerns among investors due to the track record of SPACs in the market.
Historically, SPACs have not performed well in the public market, with many companies going bankrupt after going public via a SPAC merger. In 2023 alone, 21 firms that merged with SPACs faced financial troubles, leading to significant losses for investors. This trend raises questions about the potential risks associated with Coincheck’s decision to go public through a SPAC.
Coincheck’s move to join the ranks of publicly listed exchanges comes at a time when regulatory scrutiny of the crypto industry is on the rise. The SEC has been cracking down on various crypto firms, citing violations of securities laws. This increased regulatory pressure poses a challenge for Coincheck and other crypto exchanges looking to gain legitimacy in the eyes of regulators and investors.
As Coincheck prepares for its Nasdaq listing, the company faces both opportunities and challenges in the evolving crypto market. The decision to go public via a SPAC raises concerns about the company’s financial stability and investor confidence. Additionally, the regulatory landscape poses risks for Coincheck and other crypto firms operating in the United States. Only time will tell how Coincheck’s listing on the Nasdaq will impact the company’s future and the broader crypto industry as a whole.
