Shares and security trading marketplace organizer Deutsche Boerse has announced its move to delist Coinbase (COIN) shares from both Xetra platform and the Frankfurt stock exchange.
According to a Reuters report, the delisting was necessary because of missing reference data, which took place at the end of Friday’s trading session.
Deutsche Boerse said that a wrong reference code known as “LEI” (Legal Entity Identifiers) was used to represent it when Coinbase began trading on its platform. The only way for the crypto exchange company to resume trading is for the issuer to apply for “LEI.”
Until further notice
With the missing reference data on the German exchange, Coinbase trading will stop until further notice.
It is important to note that a reference code is crucial for identification and a regulatory requirement for admission in trading.
Furthermore, Clearstream, which is a subsidiary of Deutsche Boerse and a key player in the European Union’s clearing system, has also said that it will suspend settling trades involving Coinbase shares on the Frankfurt stock exchange unless the “LEI” is provided. The move is due to start this April 23 and will continue until the condition is met.
A rocky start for Coinbase
The media hype created by the public listing of Coinbase did not hint at such a rocky start for the company.
The missing reference data was nothing more than a mistake that can be attributed to no one in particular and can be easily solved. But that does not help the fact that Coinbase shares trading on Nasdaq has shown a concerning drop from the share price at its listing.
Currently, the company’s shares are set at around $311, resulting in a market cap of more than $62 billion, but the ongoing drop in the cryptocurrency market might affect Coinbase’s shares in not-so-good ways.
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