{"id":122098,"date":"2021-04-21T17:21:40","date_gmt":"2021-04-21T17:21:40","guid":{"rendered":"https:\/\/precoinnews.com\/?p=122098"},"modified":"2021-04-21T17:21:40","modified_gmt":"2021-04-21T17:21:40","slug":"one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/","title":{"rendered":"One week of COIN: How is Coinbase\u2019s Nasdaq listing shaping up so far"},"content":{"rendered":"

April 14 was considered by many crypto enthusiasts all over the world as a watershed moment for the digital asset industry, as it marked the day when Coinbase, one of the largest crypto trading platforms in the world, made its debut on Nasdaq via a direct listing. As one can imagine, the lead up to the moment was replete with a market-wide surge, with Bitcoin (BTC) scaling up to a price point of $64,800 a day before the listing went live.<\/p>\n

In the run-up to Coinbase\u2019s Nasdaq debut, COIN\u2019s reference price was set at just $250, with all of the company\u2019s staff receiving a total of 100 shares each. What\u2019s more, in true crypto fashion, COIN\u2019s debut was mired by volatility, with stock prices rising sharply to around $430 just minutes after trading commenced. <\/p>\n

However, following this positive price movement, the value of COIN proceeded to plunge drastically \u2014 all within a matter of hours \u2014 finally wrapping up its debut at a respectable price point of $328. Since then, COIN\u2019s value has continued to hover between $320 and $345, settling at the lower end of that range exactly one week after the listing. At the time of writing, the stock\u2019s total market capitalization is touted to be worth just under $64 billion, some way off the previously estimated $100 billion. <\/p>\n

A real breakthrough or just a lot of hype?<\/h3>\n

COIN\u2019s debut within the traditional finance sector is widely considered to be an important step forward for the crypto industry, especially since it provides investors \u2014 who may not be interested in trading digital assets otherwise \u2014 with indirect exposure to cryptocurrencies. <\/p>\n

Providing his thoughts on the subject, Jelle Pol, project manager for oil and gas multinational Shell\u2019s first three blockchain projects as well as business director for Dusk Network \u2014 a privacy-oriented blockchain protocol \u2014 told Cointelegraph that Coinbase\u2019s direct listing is potentially a very interesting wake-up call for companies and regulators that are still sticking with the \u201canything crypto-related is bad\u201d angle, adding:<\/p>\n

\u201cCOIN\u2019s market capitalization now dwarfs the cumulative valuation of most of the world\u2019s largest traditional stock exchanges, and they did it in years instead of decades. It is clear that they operate under the highest standards, otherwise, a Nasdaq listing would have been out of the question, so it seems that self-regulation, in this case, has paid off immensely.\u201d<\/p><\/blockquote>\n

Indeed, with Coinbase\u2019s listing potentially bridging the gap between the traditional finance sector and crypto, an increasing number of mainstream players seem to be quite bullish on COIN. For example, New York-based asset management firm Ark Invest was quick to snap up more than 1 million shares \u2014 currently worth around $350 million \u2014 which will be spread out across three of the company\u2019s exchange-traded fund offerings.<\/p>\n

Furthermore, it bears mentioning that back in 2013, American venture capital firm Union Square invested in Coinbase at $0.20 a share, essentially allowing the company to amass a total stock haul that is now worth more than $4.6 billion. <\/p>\n

That said, the company\u2019s biggest backer by far is venture capital giant Andreessen Horowitz, through its A16z crypto fund, \u201cwhich owns shares in the crypto exchange worth about $9.7 billion.\u201d According to the information contained in Coinbase\u2019s prospectus, just seven months after the conclusion of the firm\u2019s Series A funding round, A16z led a $25-million Series B round, buying shares at $1 apiece. <\/p>\n

Subsequently, the firm was able to purchase $57.1 million worth of shares in October 2019, from Union Square at $23 apiece and then another $30 million in Coinbase stock at $28.83 a share just 12 months later.<\/p>\n

Outside of Union Square and A16z, fintech-focused venture firm Ribbit Capital is the third-largest investor in Coinbase, with the company owning a total of 12 million shares \u2014 worth approximately $3.9 billion \u2014 of the cryptocurrency exchange via its Series A funding round. Some of the other major players that had gotten a piece of the action include Tiger Global, Institutional Venture Partners, AH Equity Partners and DFJ Growth.<\/p>\n

Additionally, insider activity reports suggest that a number of Coinbase\u2019s early-stage investors, as well as members of its executive brass, sold billions worth of equity shortly after the direct listing. For example, Coinbase chief financial officer Alesia Haas sold some 255,500 shares at $388.73 per share while retaining certain options. Similarly, Brian Armstrong, the platform\u2019s current CEO, sold 749,999 shares in three transactions at various prices, netting around $291 million.<\/p>\n

That being said, while the filings initially seemed to portray a picture wherein multiple Coinbase executives sold a large part of their stake in the firm to net handsome profits, a representative for Coinbase told Cointelegraph that the sellers still maintain strong ownership positions.<\/p>\n

What does the future hold for COIN?<\/h2>\n

According to independent investment research firm CFRA, Coinbase\u2019s stock value can potentially grow by a whopping 20+% in the near future, primarily due to the accelerated adoption of crypto-enabled technologies around the globe and the entry of more institutional players into this nascent space. <\/p>\n

In this regard, a group of CFRA analysts led by Chris Kuiper stated in a recent note to the company\u2019s clients that within the next 12 months or so, the price of COIN could settle at around the $400 level. Not only that, but the research firm has also given its clients the green light to purchase Coinbase stock, even affording the stock a \u201cbuy\u201d rating.<\/p>\n

Kuiper and his team believe that investors can potentially earn up to $6.89 per share for 2021 and $3.00 for 2022, pointing out that they see operating margins ramping up, which can eventually stabilize around the 35% mark. \u201cOur base case scenario implies COIN not only becomes one of the largest financial exchanges for crypto but it is also successful in diversifying into other products and services, most notably those aimed at institutional investors,\u201d he added.<\/p>\n

CFRA analysts have chalked out three possible scenarios for Coinbase. Firstly, they believe that COIN may be faced with bearish momentum in the coming months, causing the stock to dip to $120. The second scenario is one where the stock hits $400 and stabilizes around that range. The third case revolves around the share prices going bullish and scaling up to a price point of $840.<\/p>\n

Almost a week after the Coinbase listing, a representative for the company announced that Nasdaq started trading options for Coinbase Global \u2014 COIN.O \u2014 effective April 20. The launch of equity options will offer investors yet another avenue through which they can bet on Coinbase\u2019s future. Simply put, equity options represent the right, but not the obligation, to buy or sell a stock at a certain price, known as the strike price, on or before an expiration date.<\/p>\n

Crypto market takes a tumble<\/h3>\n

In the aftermath of Coinbase Global Inc. going public, the crypto market has been faced with turbulence, with the value of Bitcoin plunging by 15% in the days following the listing, dropping from $64,000 to $51,000, albeit briefly. Similar dips were witnessed across the board, with Ether (ETH), Binance Coin (BNB), XRP and Cardano (ADA) also being on the receiving end of some serious negative price action.<\/p>\n

<\/p>\n

Furthermore, as part of the above-stated development, the total market capitalization of the cryptocurrency sector dropped from $2.37 trillion to $1.87 trillion, only to rise once again to around $2 trillion. \u201cWith hindsight it was inevitable. Markets got too excited around the $Coin direct listing. Basis blowing out, coins like $BSV, $XRP and $DOGE pumping,\u201d Galaxy Digital founder Michael Novogratz tweeted recently.<\/p>\n

Furthermore, SkyBridge founder Anthony Scaramucci stated following the listing that he was surprised that Coinbase\u2019s debut was not met with more attention from banks, insinuating that legacy institutions still have been unable to realize the immensity of the crypto-led financial revolution that is currently sweeping the globe.<\/p>\n

It now remains to be seen if more cryptocurrency exchanges follow in the footsteps of Coinbase and go public in the near term, essentially bolstering traditional investor confidence in this yet evolving space. <\/p>\n

In this regard, digital asset trading platform Kraken recently announced that while it is unsure of when it will go public, it will pursue a direct listing rather than the special-purpose acquisition company route, which Israeli brokerage platform eToro took recently.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

April 14 was considered by many crypto<\/p>\n","protected":false},"author":3,"featured_media":122097,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nOne week of COIN: How is Coinbase\u2019s Nasdaq listing shaping up so far - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"One week of COIN: How is Coinbase\u2019s Nasdaq listing shaping up so far - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"April 14 was considered by many crypto\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-21T17:21:40+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/04\/One-week-of-COIN-How-is-Coinbases-Nasdaq-listing-shaping-up-so-far.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/\",\"url\":\"https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/\",\"name\":\"One week of COIN: How is Coinbase\u2019s Nasdaq listing shaping up so far - Pre Coin News\",\"isPartOf\":{\"@id\":\"https:\/\/precoinnews.com\/#website\"},\"datePublished\":\"2021-04-21T17:21:40+00:00\",\"dateModified\":\"2021-04-21T17:21:40+00:00\",\"author\":{\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\"},\"breadcrumb\":{\"@id\":\"https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/precoinnews.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Crypto\",\"item\":\"https:\/\/precoinnews.com\/category\/crypto\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"One week of COIN: How is Coinbase\u2019s Nasdaq listing shaping up so far\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/precoinnews.com\/#website\",\"url\":\"https:\/\/precoinnews.com\/\",\"name\":\"Pre Coin News\",\"description\":\"precoinnews.com\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/precoinnews.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\",\"name\":\"mediabest\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"caption\":\"mediabest\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"One week of COIN: How is Coinbase\u2019s Nasdaq listing shaping up so far - Pre Coin News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/","og_locale":"en_US","og_type":"article","og_title":"One week of COIN: How is Coinbase\u2019s Nasdaq listing shaping up so far - Pre Coin News","og_description":"April 14 was considered by many crypto","og_url":"https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/","og_site_name":"Pre Coin News","article_published_time":"2021-04-21T17:21:40+00:00","author":"mediabest","twitter_card":"summary_large_image","twitter_image":"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/04\/One-week-of-COIN-How-is-Coinbases-Nasdaq-listing-shaping-up-so-far.jpg","twitter_misc":{"Written by":"mediabest","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/","url":"https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/","name":"One week of COIN: How is Coinbase\u2019s Nasdaq listing shaping up so far - Pre Coin News","isPartOf":{"@id":"https:\/\/precoinnews.com\/#website"},"datePublished":"2021-04-21T17:21:40+00:00","dateModified":"2021-04-21T17:21:40+00:00","author":{"@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a"},"breadcrumb":{"@id":"https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/precoinnews.com\/crypto\/one-week-of-coin-how-is-coinbases-nasdaq-listing-shaping-up-so-far\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/precoinnews.com\/"},{"@type":"ListItem","position":2,"name":"Crypto","item":"https:\/\/precoinnews.com\/category\/crypto\/"},{"@type":"ListItem","position":3,"name":"One week of COIN: How is Coinbase\u2019s Nasdaq listing shaping up so far"}]},{"@type":"WebSite","@id":"https:\/\/precoinnews.com\/#website","url":"https:\/\/precoinnews.com\/","name":"Pre Coin News","description":"precoinnews.com","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/precoinnews.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a","name":"mediabest","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","caption":"mediabest"}}]}},"_links":{"self":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/122098"}],"collection":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/comments?post=122098"}],"version-history":[{"count":0,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/122098\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media\/122097"}],"wp:attachment":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media?parent=122098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/categories?post=122098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/tags?post=122098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}