Coinbase CEO: On-chain IPOs will significantly reduce costs, decrease friction, and enhance participation

Coinbase CEO Brian Armstrong posted on the X platform that it is currently necessary to make it easier for private companies to access capital. The high demand from large private companies reflects the negative consequences of increased regulation.

Currently, companies tend to remain private for a long time, resulting in profits flowing to private or credit investors, and stock performance after going public is often poor, with a lack of liquidity in the early lifecycle to set reasonable valuations. Ultimately, companies will be able to conduct public offerings entirely on-chain, which will significantly reduce costs, decrease friction, and improve accessibility.