Just one week after listing, Coinbase is about to be delisted by European exchanges?

Source: Jinshi Data

Author: Lin Mochou

Original title: "Coinbase will be delisted by European exchanges just one week after listing"

Last week, the star of the cryptocurrency world was undoubtedly Coinbase. Known as the "first cryptocurrency stock," it was listed on the Nasdaq exchange last Wednesday, and the company's valuation soared to more than $112 billion that day.

The company's listing carries an important vision for the cryptocurrency market: helping cryptocurrencies "break the circle". At that time, the company won the favor of the female stock god "Wood Sister" as soon as it landed on Nasdaq; Jim Cramer, founder of TheStreet, also pointed out that buying Coinbase was a "real good deal", adding:

“If you are a big believer in crypto, you should definitely own Coinbase for the long haul.”

However, as of Wednesday's close, Coinbase's valuation had fallen back to $63.9 billion, and its stock price had fallen nearly 10% from its peak when it went public.

On Wednesday, a piece of news overshadowed the star exchange.

Deutsche Boerse said on Wednesday it would delist Coinbase Global’s shares from its Xetra trading system and the Frankfurt Stock Exchange until further notice at the end of trading on Friday due to a lack of necessary documents to qualify the stock on its platform.

Deutsche Boerse said the company also logged into the Xetra trading system and the Frankfurt Stock Exchange during its U.S. IPO last week and provided the code required for trading, but that the code was not correctly associated with the listed entity.

A spokesperson for the exchange said:

“We have identified an administrative error that necessitated Coinbase to resubmit certain documentation to certain European stock exchanges. We are working to resolve this issue as quickly as possible. At this time, there is no interruption to trading in Coinbase shares.”

Fortunately, Coinbase's transactions in the United States were not affected, and Coinbase's stock price fell nearly 3% overnight.

Specifically, the code is the Legal Entity Identifier (LEI), a 20-character, barcode-like, unique code that enables assets to be identified in transactions and is used by regulators to monitor the market. Every stock traded on the European market has been required to have this code since January 2018.

Of course, it is not impossible to allow Coinbase to re-list on European exchanges. A spokesperson for Deutsche Boerse said:

“The only way to get Coinbase to allow trading again is for the issuer to apply for an LEI and then resubmit the dossier to the European stock exchange.”

According to the websites of various LEI providers, companies can obtain the code within a few days. Coinbase did not immediately respond to requests for comment.

Charlie Morris, fund manager and founder of London-based cryptocurrency price discovery site ByteTree.com, said:

"It's a minor annoyance. Most of the big U.S. companies are listed on the Deutsche Börse, but the trading volume is very small."