Coinbase, being the largest cryptocurrency exchange going public, can showcase to the whole world that cryptocurrency is here to stay. During its first day in the market, Coinbase has received high public acceptance with more buyers bringing the price up.
Bitcoin again hit the all-time-high and is currently consolidating at the high level. Commentators say that part of the reason behind its bullish run is the anticipation of the listing of Coinbase. Coinbase has received high public acceptance with more buyers bringing the price up during its first day in the market.
The US largest and most well-known cryptocurrency exchange Coinbase has gone public, reported Oscar Gonzalez of Cnet. With an opening base price of $250 per share, you can now trade Coinbase like any other publicly traded stock. A former Airbnb Engineer Brian Armstrong founded Coinbase together with a former Godman Sach’s trader Fred Ehrsman in 2012. Coinbase became popular for its intuitive, newbie-friendly platform. It offers a collection of tools to help investors learn about different types of crypto. They even reward some viewers of its educational tutorials with cryptocurrency.
So far, Coinbase has more than 53 million accounts on its platform to trade over 50 cryptocurrencies. Included in the Coinbase are the popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin. It also has credit card offerings for those who want to buy using crypto. Moreover, it offers a digital wallet to keep crypto-assets including NFTs.
Direct listing route
Coinbase chooses a direct listing, making its shares available to the public. It did not go through an initial public offering (IPO) where large institutional investors get access first. By going directly to the public, Coinbase will showcase how stable Bitcoin and the cryptocurrency industry have become.
To remain true to its subversive fundamentals of cryptocurrency, Coinbase decided to forego Initial Public Offerings (IPO). Instead, it decided to go directly to the public.
By going the IPO route, a company can expect bulk buying from financial institutions that’ll also help promote its stock. On the other hand, a direct listing offers an opportunity for existing shareholders in the company to sell shares to the public. Coinbase stockholders are projecting to sell around 15 million shares.
A direct listing, where people trade in the open market without a guarantee from banks can be riskier to the company. But it is also a less expensive alternative. Spotify is one company that chose to go direct listing when it went public in 2018.
Coinbase has received high public acceptance
Coinbase goes public on the Nasdaq exchange at a base price of $250 per share under the ticker symbol COIN. The company has an approximated $65 billion valuation according to the Wall Street Journal. The $250 per share price was based on its past performance measurements and doesn’t really reflect its actual potential opening price.
Coinbase has received high public acceptance as the price has soared high already during its first day in the market. Reaching its highest of $429.54, almost 72% from the reference price of $250. Its lowest price of $310 for the day is still 24% higher than the $250 reference price.