Binance.US might join Coinbase as it aims to become a publicly traded company in the upcoming years.
Binance CEO Chaingpeng Zhao. Source: Medium
Changpeng Zhao – Founder and Chief Executive Officer of Binance – said the US arm of the cryptocurrency exchange could follow Coinbase and have an initial public offering in the next 36 months.
In a recent interview with The Information, the head of Binance – Changpeng Zhao – revealed that Binance.US – the company’s affiliate in the States – plans to launch an IPO in the next three years:
“Binance.US is just going to do what Coinbase did.” – said Zhao.
Coinbase – another leading cryptocurrency exchange – became the first major company in the field to have its shares publicly traded. In mid-April, when the platform had its IPO, it started trading on Nasdaq at a price of around $400. As of now, though, the COIN shares have dropped to around $265.
During his interview, Changpeng Zhao – also known as CZ – pointed out that Binance.US is close to settling a large private fundraising round in the upcoming months. The initiative would reduce the CEO’s control of the board.
It is worth noting that the former CEO of Binance. US – Brian Brooks – recently resigned from his position. The top executive did not elaborate much in detail, simply explaining that there were differences over the strategic direction of the exchange.
Even though the trading venue has caught the attention of many regulators, it generated earnings between $800 million and $1 billion during the past year, according to Zhao.
In this manner, the Financial Conduct Authority (FCA) stated last week that it had settled all of its previous issues with the world’s largest cryptocurrency exchange – Binance:
“On June 25th, 2021, the FCA imposed requirements on Binance Markets Limited. The firm complied with all aspects of the requirements.”
However, shortly after, the British watchdog warned that “based upon the firm’s engagement to date,” the trading venue poses a significant risk and cannot be supervised effectively.
This is not the first time CZ has spoken about an IPO. The executive hinted about such a potential development in July this year.
Dimitar got interested in cryptocurrencies back in 2018 amid the prolonged bear market. His biggest passion in the field is Bitcoin and he was fascinated with its journey. With a flair for producing high-quality content, he started covering the cryptocurrency space in late 2018. His hobby is football.