Coinbase is the biggest U.S. digital-asset exchange company. It went direct public, the listing of its shares headed for a valuation of $100 billion.
Experts indicated Coinbase would start trading at $380. This number is above the reference price of $250 that was published late on Tuesday by Nasdaq. COIN is the stock ticker.
A finance professor at Georgetown University who specializes in financial-market structure, James Angel, said, “The price of COIN will be very volatile; we can expect it to fluctuate along with the prices of cryptocurrencies. Investors should buckle up their seatbelts and expect a wild ride.”
Without relying on Wall Street investment banks to set the price, Coinbase has listed its shares on Nasdaq. It is not an unusual offer. Market makers used to need hours to determine the appropriate opening price in price.
Bitcoin is the biggest cryptocurrency by market value. Influenced by the news, it soared on Wednesday to a new all-time high above $64,000. Ethereum is the second-biggest cryptocurrency. It also rose to a record price of around $2,400.
Coinbase’s competitors follow the company’s steps: Binance, the world’s largest cryptocurrency exchange, announced that it would list a digital token backed by Coinbase shares.
The market capitalization for Coinbase would imply around $76 billion, according to the attest share price indication. It is roughly the same amount as oil companies BP and automaker General Motors have.
It is required by coinbase investors to not only have a view on the future of bitcoin but on other crypto exchanges as well and decentralized exchanges that will be competing with it for market share.
Compared to a full-year $1.27 billion in 2020, the exchange reported $1.8 billion in revenue for the quarter. Depending on different results in the crypto market, Coinbase gave scenarios for user growth. The company reported 6.1 million active users in the first quarter, more than double the number during the final quarter of 2020.