Coinbase could be getting ready to launch its crypto asset, according to the latest reports.
The online publication the Daily Hodl notes that Coinbase hints at possible launching its own token as a part of its plan for going public.
In its official filing with the US SEC to receive approval for an initial IPO, Coinbase said that part of the capital-raising strategy could include the issuance of its own blockchain tokens in order to support the company’s financial health as a public company.
“We also expect that being a public company and complying with applicable rules and regulations will make it more expensive for us to obtain director and officer liability insurance, and we may be required to incur substantially higher costs to obtain and maintain the same or similar coverage” according to notes.
Coinbase might require more capital
The same notes continue and reveal that “These factors could also make it more difficult for us to attract and retain qualified members of our board of directors and qualified executive officers. We might require additional capital to support business growth, and this capital might not be available.”
The same online publication mentioned above notes that in order to generate more capital and help quell debt, Coinbase proposes allowing its board of directors to issue blank check preferred stock in the form of blockchain tokens, as well as making the tokens available to customers on the exchange.
“Issuing blank check preferred stock is usually used by a company’s biggest shareholders to raise new capital without having to get approval from separate shareholders,” the Daily Hodl notes.
We suggest that you check out the complete article in order to learn more about the issue.
In other recent news, Coinbase has reportedly filed some documents with the US SEC to go public, revealing it has executed more than $1 billion crypto trades from some of the largest institutions in the world.