Coinbase IPO is official and the cryptocurrency exchange platform has made its way to Wall Street. Making it one of the most anticipated events of 2021.
Brian Armstrong’s crypto marketplace is all set to begin trading via direct listing, at a share price of $250 (which gives it a valuation in the $60 billion range). However, some believe this number to be over $100 billion.
What does Coinbase IPO mean for Bitcoin? & What Impact will it have on the Industry?
Amid the hype around Brian Armstrong’s Coinbase making its way to Wall Street via a direct listing in NASDAQ, Bitcoin price is now at a record high of $64,000. These trends show that all the planets are aligned for Coinbase’s market debut on April 14, 2021.
The stock exchange market backing up Coinbase is only good news for crypto enthusiasts and will be a catalyst for success for other players in the crypto market too. The astronomical numbers and projections are already attracting a lot of investors. There is a lot of momentum building around Bitcoin ETF applications too. For instance; Novogratz’s Galaxy Digital filing for the US Bitcoin ETF and players like VanEck jumping into the crypto fray too. So yes, Coinbase IPO is a huge catalyst for success right now and it is going to attract some pretty big institutional dollars if more ETFs start getting approved by the SEC.
Another thing to note is that Bitcoin has created a lot of wealth for people who were not part of the traditional financial system. Coinbase IPO is going to pave for thousands of millionaires & billionaires. They will probably take some of their listing proceeds and reinvest in the crypto ecosystem. So there is this really productive recursive effect, where it’s not all about investing in the assets and companies. Something we’ve been doing for over a decade now.
With initiatives like Coinbase IPO, there will be healthy competition in the crypto space too. For instance; we know that 90% of Coinbase revenue is generated from retail trading and high premium fees for buying & selling cryptos. With competition, the margins will get compressed.
So for example; Binance is the biggest competitor of Coinbase and has a market cap of around $88 billion. It is the third-largest Bitcoin and cryptocurrency exchange platform and has much lower transaction fees. This will certainly bring in new players and speed up this kind of fintech revolution so it’s readily available and everyone can benefit from it.
The pace of innovation in the industry has been nothing short of mind-boggling but the question is are these blockbuster numbers and projections sustainable? Only time will tell.
For now, there’s a lot of positive hype around Coinbase IPO. The business model is very exciting and quite lucrative too.
Stay tuned to InvoZone for more updates from the crypto world,