Yet maybe we should debate a more fundamental requirement when it comes to an IPO like Coinbase. Given those identifiable dangers, does this look like a company that’s suitable for investor consumption — a sustainable business model, with non-material compliance risks, that serves some kind of utility beyond speculative trading? In hindsight, maybe not. Martin Finnegan, a partner at Punter Southall Law, says that while it’s obviously Coinbase’s responsibility to not break the law, it’s also true that stock exchanges are a “first line of defense” when it comes to the suitability of an IPO — and that, in this case, the legal risks might have deserved more than just a list of red flags.
Source: Crypto Winter: Maybe Coinbase Should Never Have Gone Public – Bloomberg
