New Asset Launch: Exploring Orchid's quiet Coinbase listing

Orchid, the first newly launched asset to land on Coinbase

Last Dec., Orchid finally hit the market by launching its token-powered VPN (Virtual Private Network) protocol while simultaneously landing a coveted listing spot on Coinbase. In doing so, it became the first asset Coinbase listed that did not previously have a publicly available product.

But the strategy behind Orchid’s launch is curious.

Orchid is not a well-known project beyond the usual crowd of crypto venture capitalist firms. Despite a limited following, it opted to quietly list its native token, OXT, on the open market and forgo any pre-launch public fundraise or token distribution event. Public token sales, much like IPOs in traditional finance, can help bring in new capital, generate user interest, and widen the breadth of token ownership. But Orchid’s strategy is not unprecedented, having its own finance analog in the form of Direct Listings.

Direct Listings are an emerging trend among companies looking to go public, with Spotify and Slack as the most recent success stories, and Orchid’s similar approach suggests the methodology behind a Direct Listing might trickle down to the crypto markets.

Why opt for a Direct Listing?

Direct Listings offer companies an alternative (and cheaper) route to the public markets. Whereas IPOs attempt to raise additional capital by selling newly issued stock to public investors, Direct Listings do not feature a sale, which removes most of the underwriting costs associated with going public and doesn’t dilute existing shareholders.