“Coinbase to enlist 50 currencies remain the largest crypto company in the US”
Cryptocurrency platforms are yet to gain the trust of consecutive investors and regulators. But Coinbase, the largest cryptocurrency exchange in the US, decides to go public.
And by doing so, it sets history by introducing cryptocurrency for interested parties. It’s the first major crypto company trying to legitimize the much-debated industry.
About 50 different currencies remain enlisted to enable trading with the company. As for Nasdaq, its Wednesday listing (14th April) should exceed a valuation of $90B or £66B.
Coinbase decides to sell its $114.9MM shares to the public by a direct listing strategy. The method helps to initiate advanced fiscal policies. There’s no need to rely on investment banks for setting the share price.
Even Slack and Spotify adapted the same process to go public. Also, early investors can’t make arbitrary profits from opening day price pops. But the platform skips issuing any new Initial Public Offering (IPO) for now.
Active Coinbase users held a surge from $2.8MM to $6.1MM by December 2020. And verified users to own account experience a jump from $43MM to $56MM.
Total revenue of $1.3BN comes with a $322MM profit in the last year.
Meanwhile, its fiscal year’s first quarter already turned over $1.8BN to exceed the whole of 2020. The current expectation remains confined to make $730MM to $800MM for the first quarter.
Trading Q1 value to hold $335BN already topped the previous year’s $193BN value.
Total assets on the platform catch a $223BN milestone. Not to mention, almost half of the assets come from well-defined ‘institutional’ users.
Therefore, it’s clear to notice the jumping valuation of the crypto platform. No viable downfall seems capable of halting the continuity.
Financial experts suggested a further setting value of its overall ‘Demand & Interest’. And minimal doubts can occupy its continued float to occupy the investor’s trust.
Still, ongoing distrust presents certain roughness to change the approach. Chief market analyst, Michael Hewson, at the CMC Markets revealed its suspicious nature.
To him, many critics are still questioning the overall sustainability of its valuation. A notable number of governments are yet to allow cryptocurrencies for exchange. Evaluation of cryptocurrency is likely to require future regulations. And it may pose a headwind with threats for traditional investors.