Coincheck, one of the largest crypto exchanges in Japan, is planning to go public in the United States via a partnership with a special purpose acquisition company (SPAC). This move will make Coincheck one of the two publicly listed exchanges in the US, alongside Coinbase. The company aims to complete its listing on the Nasdaq under the ticker symbol CNCK by the second or third quarter of this year. Coincheck submitted a confidential registration statement (Form F-4) to the US Securities and Exchange Commission (SEC) on May 7, signaling its intentions to enter the US public market.
By choosing to use a SPAC for its public listing, Coincheck is avoiding the traditional initial public offering (IPO) process. However, this decision may raise concerns among investors, as most SPACs have had a poor performance in the public market. In 2023, over 21 firms that went public through SPAC mergers ended up bankrupt, resulting in significant losses for investors. The capitalization of companies going public via SPACs has also seen a notable decline, with investors losing around $46 billion.
Coincheck’s decision to go public comes at a time when the SEC is increasing its regulatory scrutiny of the crypto industry. The financial regulator has recently targeted various crypto firms, including Consensys, Uniswap, and Robinhood’s crypto arm, with Wells Notices for alleged violations of local securities laws. SEC Chair Gary Gensler has emphasized that most cryptocurrencies are considered securities tokens and lack proper disclosures to protect investors. This regulatory environment adds another layer of complexity and risk to Coincheck’s upcoming public listing.
Coincheck’s plans to go public through a SPAC raise concerns about the company’s potential performance in the US public market. With the SEC ramping up regulatory scrutiny in the crypto industry and the track record of SPAC mergers showing significant risks for investors, Coincheck will need to navigate these challenges carefully. The outcome of Coincheck’s public listing on the Nasdaq will likely have implications for the broader cryptocurrency market and the perception of crypto exchanges among investors.