Binance.US is planning an IPO in three years, can it make it happen?
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Experts believe that while the listing is certainly a "big win" for the platform, Binance will have to take a lot of steps to make it happen.
According to The InformationAccording to The Information
Changpeng Zhao, founder and CEO of Binance, the world's largest cryptocurrency exchange, revealed that its subsidiary Binance.US plans to conduct an IPO within the next three years.
“Binance.US will be like Coinbase (listing),” he said in an interview.Although Binance is primarily a global entity, various local regulatory constraints prompted it to launch a US branch in September 2019.November last year
, Americans were eventually banned from using Binance’s global platform.According to the Binance.US FAQ
, the platform is currently available in most (but not all) U.S. states, but residents of Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont remain unavailable its service.
According to Mati Greenspan, founder of crypto analytics firm Quantum Economics, a successful IPO will help U.S. regulators see Binance.US as a legitimizing platform, and may even have a positive impact on the broader crypto industry.
“Listing on a public stock exchange is an up-and-coming opportunity for many companies,” Greenspan said. “Especially in the U.S., especially in the crypto space, the regulatory environment has been a particular hurdle. Every crypto that trades on a major exchange The company is a huge win for the industry as a whole."
Coinbase’s direct listing became one of the most closely watched events in the industry earlier this year. At that time, many encryption experts believed that Bitcoin would definitely benefit from the listing of Coinbase, because it was a "watershed moment" for the encryption industry.
Konstantin Anissimov, executive director of crypto exchange CEX.IO, noted that Changpeng Zhao’s “hints about a possible listing are not surprising.”
“After Coinbase goes public, the question that every major player in the cryptocurrency industry is likely to ask is, ‘Should we do the same?’ Going public is a natural step for a company to grow beyond a certain size. It provides access to substantial capital , providing liquidity to the core team, developing banking relationships, and opportunities to form new partnerships."
Anissimov added that going public would also bring new brand recognition and change the quality of the relationship with the market, a major step change.
However, he explained that while an IPO is “certainly a win” for Binance.US — or any other exchange for that matter. But it's not something that one company "just happens to" pull off.
Anissimov noted, “There are a lot of things that need to be done right before it can go public. An IPO forces the company to behave reasonably — it has to disclose audited financials, compensation, and lawsuits in a rigorous filing process. It’s the equivalent of opening a black box.” Is Ann ready for this kind of transparency?"
According to him, in order for its U.S. arm to successfully list, it could be forced to “separate structurally and materially” from the larger Binance entity if it decides not to fully disclose its books.
Anissimov concluded, “Given the recent regulatory scrutiny Binance has faced, the first option (opening the black box) would require the company to do a lot of legal work and perhaps abandon some of their accustomed ways of doing business. The second option (disassociation) would require Binance.US is smaller and less attractive. It will be most curious to see which direction it goes.”
At the same time, Zhao Changpeng revealed that Binance.US also plans to close a large-scale private placement financing round in the next few months, which will also reduce his control over Binance’s board of directors.According to Changpeng ZhaoA research report mentioned on Twitter
