Coinbase, the largest cryptocurrency exchange in the United States, will soon be listed as soon as the COIN shares are listed on the Nasdaq exchange on 14 April.
Overall, the sentiment around the list was very positive from both the digital currency and the traditional financial markets. In just one day, analysts posted different perspectives on how the listing would affect Bitcoin and altcoin prices.
Coinbase Rally, the top of cryptocurrency?
As Cointelegraph mentioned earlier, Coinbase does not perform an IPO.
Instead, the exchange is listed directly on the Nasdaq exchange, and avoids the need to cooperate with investment banks, which is often costly for companies.
While the investment banks are not listed on Coinbase, COIN gives a lot of buzz.
In his speech on CNBC’s Squawk Box on April 12, Jim Kramer said:
“You should buy Coinbase when this agreement goes through. Despite the fact that this is a deal of 100 billion dollars, it has become known that there are several companies that are about to turn around. MicroStrategy has always been a leader, so others may want to follow. ”
There are many reasons why investors in the traditional financial market are optimistic about COIN.
In particular, the two main factors are entry into the cryptocurrency market without owning cryptocurrencies and Coinbase’s lucrative business model.
According to Ben Lily, co-founder of Jarvis Labs:
“Coinbase is a turning point when it comes to legitimizing some of the valuation you see in cryptocurrency, especially with regard to DEX, which has a small fraction of the number of employees and operating costs [OPex] owned by Coinbase or ICE. Crypto is an asset of enormous size and variety that is preparing for further growth. Coinbase shows how profitable it can be to enter this market. In addition, I expect a wave of mergers and acquisitions and venture capital to come, as private investors ask their fund managers to reveal this space. ”
Venture capital financial researcher John Street Capital noted that Coinbase earns huge profits with $ 1.8 billion in annual revenue.
Apart from financial reporting and attractive revenues, Coinbase’s user base is much larger than the Cash App and Venmo.
In fact, Coinbase has the largest user base of any financial institution in the United States, with the exception of JPMorgan Chase. The researcher wrote:
The Coinbase team announced data for Q1 21, including approximately $ 1.8 billion in revenue, $ 1.1 billion in EBITDA, $ 730 million to $ 800 million net indices, $ 335 billion in trading volume and platform value of $ 223 billion dollars (11.3%) of the crypto asset market). )) For $ 56 million. Users; Operating ratio: $ 7.2 billion in revenue / $ 4.4 billion in EBITDA / $ 3.0 billion from NI. User # 56 Million is more than CashApp & Venmo and much more than RobinhoodApp & eToro. It’s more than any named $ JPM bank. ”
While some traders believe that the cryptocurrency may peak after being listed by Coinbase, the market sentiment for the listing is very positive.
Asked about the importance of listing on Coinbase, Ben Lili said:
“You always need this bridge. As old markets value a crypto company, it is this bridge. Many years of investors can now cross the bridge and realize that this is an unknown sea of investment funds. They may not invest right away, but their structure After all, it’s easier to value something.
Mike McGlone, chief product officer at Bloomberg Intelligence, believes Coinbase’s “IPO” could push Bitcoin’s value up to $ 70,000. He said:
Coinbase IPO could push #Bitcoin to $ 70,000 as #Tesla to $ 60,000 – the lowest 30-day volatility since October indicates that Bitcoin has broken out of its cage and that the bull market continues, which is favorable for the next move of $ 10,000 … Like the Tesla stock – the distribution of bitcoin wealth.
What were the results of Galaxy Digital after listing on the Canadian Stock Exchange?
Another crypto company that was announced last year is Galaxy Digital, billionaire investor Mike Novogratz.
Since its listing on the Canadian Stock Exchange, Galaxy Digital has increased more than twenty times.
Galaxy Digital stock price. Source: Yahoo Finance
Although the business model and market value of the two companies at launch are very different, this indicates that there is interest in companies specializing in cryptocurrencies listed on the stock exchange at launch, which is likely to reflect the value of COIN.