Coincheck, a well-known Japanese cryptocurrency exchange, is gearing up to become one of the two publicly listed exchanges in the United States. The company has announced its intention to list on the Nasdaq through a partnership with a special purpose acquisition company (SPAC) called Thunder Bridge Capital Partners IV (THCP). Upon completion of the merger, Coincheck Group BV will be rebranded as Coincheck Group NV and will be listed on the Nasdaq under the ticker symbol CNCK. The submission of the confidential registration statement, Form F-4, to the US Securities and Exchange Commission (SEC) on May 7 marked a significant step in the process.
While going public via SPAC offers certain advantages, it also raises concerns among investors. Historically, SPACs have not performed well in the public market, with a significant number of companies going bankrupt or experiencing a decline in market capitalization after merging with SPACs. In 2023 alone, 21 firms that went public through SPAC mergers filed for bankruptcy, resulting in substantial losses for investors. Given this track record, investors may be wary of Coincheck’s decision to follow a similar path to a public listing.
Coincheck’s move to join Coinbase as a publicly listed exchange comes at a time when the SEC is increasing its regulatory oversight of the cryptocurrency industry. In recent weeks, the financial regulator has issued Wells Notices to several crypto firms, including Consensys, Uniswap, and Robinhood’s crypto division, alleging violations of securities laws. SEC Chair Gary Gensler has emphasized the need for adequate investor protections in the cryptocurrency space, arguing that most cryptocurrencies are essentially securities tokens that lack the necessary disclosures.
Despite the regulatory challenges and investor concerns, Coincheck remains a major player in the cryptocurrency market, particularly in Japan. With nearly 2 million verified users and a solid reputation built over nearly a decade of operation since 2014, Coincheck has established itself as a reliable and trustworthy exchange. The company’s decision to pursue a public listing on the Nasdaq reflects its ambition to expand its presence globally and attract more investors.
Coincheck’s move to join Coinbase as a publicly listed exchange on the Nasdaq is a significant development in the cryptocurrency industry. However, the decision to go public via SPAC raises questions about the company’s future performance and investor confidence. As regulatory scrutiny intensifies, Coincheck will need to navigate these challenges carefully to ensure a successful listing and continued growth in the competitive crypto market.
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