Jesse Powell is rethinking Kraken’s plan to go public which is set for late 2022, following the uninspiring performance of Coinbase stock (COIN) since its launch on April 14.
Speaking with Fortune on June 11, Powell stated that in light of the performance on Coinbase’s direct public offering, the firm is now considering an initial public offering (IPO) more “seriously now,” as the firm is looking to avoid potential issues a direct listing presents:
“Not having lock-ups, having billions of dollars of insiders be able to dump their shares, you know, on day one […] I think it has a dampening effect on the market.”
“And, you know, the IPO is just a very different process,” he added. Kraken began discussing the idea of public listing in March, following Coinbase’s plans to pursue a direct listing on the Nasdaq.
Powell then followed that up in April with a timeline suggesting the firm was potentially looking to go public sometime in 2020, and