Former NYSE Chairman Farley Says SPACs Will Disappear, Capital Markets Are Dead

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Former NYSE Chairman Tom Farley and the acquisition of Far Peak (NYSE:APFC) The head of SPAC said he thinks SPACs are an investment structure and that he thinks capital markets are “completely dead” at the moment.

“They are going to go away and on this show you won’t say the word SPAC I guess in 2024 more than once or twice,” Farley said earlier in a interview on CNBC.

Farley pointed out that there were four initial public offerings in June compared to 91 in June last year.

IPOs are “completely dead,” Farley said. They’ll be back “but it’s going to be a long time. People who think they’re going to go public in the second half of this year are wrong.”

“I think crypto is more like capital markets than SPACs,” Farley added. “It’s a painful time. I think retail has been smoked out. I don’t think retail is coming back anytime soon and it’s really going to impact some of the big crypto business models that are trending to retail and generated huge retail fees.”

Farley’s comments came minutes before Coinbase Global (NASDAQ: CURRENCY) announced it was cutting its workforce by 18% to manage expenses and “to make sure we stay healthy during this economic downturn,” CEO and co-founder Brian Armstrong said in a blog post. Publish tuesday.

“It will take years to rebuild the retail base,” Farley said.

Farley’s comments on SPACs and crypto are noteworthy, as Peter Thiel backed the acquisition of SPAC Far Peak (FPAC), which is led by Farley announced a deal in July to take the bullish crypto-exchange public. At the time, the deal valued Bullish at $9 billion.