Canadian Cryptocurrency Giant Coinsquare Plans To Raise $120 Million Through IPO

Coinscquare, a Canadian cryptocurrency Exchange has announced that it plans to launch an Initial Public Offering (ICO), through which it plans to raise roughly $120 million. The organization which is currently one of the biggest cryptocurrency exchanges in the North American country plans to launch the IPO in September this year as part of its plan to raise capital for expanding its presence overseas.

Coinsquare CEO Cole Diamond recently revealed some of the company’s plans during an interview: “The United States and the U.K. market are next. We believe that we will be a strong competitor to Coinbase and other exchanges in the U.S. by the end of the year,”

The Canadian cryptocurrency exchange plans to launch the IPO through the Toronto Stock Exchange. This is contrary to the direction that other cryptocurrency exchanges have been taking.  Some of its rivals in Canada have taken the easier road by being listed Canada’s TSX Venture Exchange through reverse takeovers (RTOs).

RTOs do not require a firm to go through a full review by the securities commission and they are also not required to come up with elaborate prospectuses like mainstream IPOs. Unfortunately, the easier listing rules involved through RTOs have encouraged insufficient disclosures, too much volatility, and stock promotions.

Diamond stated that his company was not interested in pursuing the RTO route despite it being cheaper and faster than IPOs. This is perhaps because the company is trying to avoid the bad reputation that has characterized crypto exchanges. Choosing to launch an IPO is part of Coinsquare’s strategy to attract investors in a manner that is trustworthy and transparent. The CEO stated that the company is also in the race but that it is taking the old route so that it competes the right way.

Coinsquare also plans to start offering Ripple on its crypto exchange platform as of next month. Ripple is one of the cryptocurrencies that have been performing exceptionally and it is thus a good option to include in the company’s portfolio. The CEO also revealed that the company plans to be launching one cryptocurrency every month. The exchange platform currently supports major cryptocurrencies such as Ethereum, Bitcoin, Litecoin, Bitcoin Cash, Squarecoin, Dogecoin, and Dash.

There are so many cryptocurrency exchanges that have popped up in the market with each competing to be the best. This is perhaps due to the massive gains and volatility that has been evident in the cryptocurrency market and this has also aroused the interest of regulators. Exchanges have also been threatened by hackers and disruption for example due to slow transactions.