Companies are supposed to IPO to raise capital. Of course it also gives investors and insiders a chance to cash out as well. Coinbase listing directly means insiders have an excuse to dump the stock to make it publicly available. Meanwhile they just cash out big time. This has obviously gotten really bad publicity mainly from anti-crypto folks (I'm not in that camp). Especially the insiders dumping close to 100% (seems like a lot of wrong numbers have been reported though). Thoughts? What is the real intention of going public like this?
Ipo benefits banks and dpo benefits employees
Why bank. IPO should benefit company as they raise capital
Read this and use your own mind CFO Alesia Haas sold ~15% of total holdings CPO Surojit Chatterjee sold ~8% COO Emilie Choi sold ~24% CEO Brian Armstrong sold less than 2% https://twitter.com/fintechfrank/status/1384009278667689987?s=20
Fb you literally answered your own question. Companies IPO for two reasons: raise cash or cash out
Right. But the IPO route you can at least pretend you raise cash. Coinbase didn't seem to pretend to send out an inspiring message in this case beyond "we're cashing out". At least it's transparent.
PLTR did the same thing. In fact, there is an interview with PLTR CEO Alex Karp where he said they decided to IPO to let people (investors) reap the benefits. It’s the same thing here. Also, there are some other pros and cons between DPO and IPO. You can look them up. I think one of the reasons a company DPOs instead of IPOs is because DPO doesn’t dilute existing shares where as IPO to raise money typically means the issuing of new shares.