Japanese cryptocurrency exchange Coincheck has made waves in the industry with its announcement to become publicly listed on the Nasdaq. This move comes as a result of a partnership with special purpose acquisition company Thunder Bridge Capital Partners IV (THCP), which will allow Coincheck to bypass the traditional initial public offering process.
While Coincheck’s decision to go public via a SPAC may seem like a strategic move, it could also pose a significant risk to investors. Historically, SPACs have not performed well in the public market, with many companies going bankrupt or experiencing a drop in market capitalization. This raises concerns about the potential outcomes for Coincheck once it completes its listing on the Nasdaq.
Coincheck’s public listing plans come at a time when the Securities and Exchange Commission (SEC) has increased its regulatory scrutiny of the cryptocurrency industry. Recent actions taken by the SEC against firms like Consensys, Uniswap, and Robinhood’s crypto arm highlight the growing concerns around compliance with securities laws in the crypto space. SEC Chair Gary Gensler has also emphasized the need for better investor protections in the cryptocurrency market.
Despite the potential risks associated with its public listing, Coincheck remains one of the largest cryptocurrency exchanges in Japan with nearly 2 million verified users. The exchange has been operating since 2014 and has built a strong reputation over the past decade. However, the decision to go public via a SPAC will test Coincheck’s resilience in a rapidly evolving regulatory environment.
As Coincheck prepares to make its debut on the Nasdaq, the cryptocurrency industry will be watching closely to see how this move unfolds. The exchange’s decision to embrace public listing comes with both opportunities and challenges, and only time will tell how Coincheck navigates the complexities of the public market. Investors, regulators, and stakeholders alike will be closely monitoring Coincheck’s journey as it embarks on this new chapter in its history.