“The Biggest IPO in History” – Experts Evaluate Coinbase IPO

Industry-first popular cryptocurrency exchange Coinbase will be launched on the Nasdaq Stock Exchange. This is a historic moment and experts believe it will be a catalyst for more listings in the future.

This year has already turned out to be successful for the company. After a phenomenal first quarter, the company generated more than $ 1,8 billion in revenue in the first three months of 2021. By comparison, the company generated $ 1,3 billion in revenue for the full year of 2020.

In the first quarter of this year, he made about $800 million in profits. This prompted him to decide on a public listing on one of the largest stock exchanges in the world.

It is the first full-fledged cryptocurrency company to take this step. Company ticker will be traded on the stock exchange as "COIN"... The company was last valued at $ 90 billion. Nasdaq has quoted a reference price of $ 250.

"Largest IPO in History"

Don Tapscott, executive chairman of the Blockchain Research Institute, called the Coinbase IPO "the largest IPO in history."

“This will attract 1000 millionaires who will reinvest their windfall profits in this industry, accelerating the adoption of this technology. It will also be the first and only large-cap company that they can comfortably own and buy in droves. "

Tapscott also believes this could lead to more listings from other larger organizations in the future.

“This is a shot through the nose of Wall Street, and it might not even be the biggest exchange,” Tapscott says.

Ontology founder Li Jun believes this listing will be a turning point for the industry. He says the listing will benefit both centralized and decentralized exchanges.

“By listing on a major stock market, Coinbase is attracting attention and investment in the crypto space from a number of new sources,” he explained, adding:

“Traditional financiers can now point to Coinbase as an example of a properly vetted and publicly traded crypto asset company when reaching out to new entrants, whether they are limited partners, new investors or other firms. This focus will lead to more accountability and regulation. "

Rashid Ajaja, CEO and Co-Founder of AllianceBlock, explains that the listing will also bring long-awaited legitimacy to the cryptocurrency space.

“As the largest and most public U.S. cryptocurrency business, Coinbase’s listing provides added visibility and legitimacy to the entire industry. Coinbase is acting as a gateway into crypto for many retail investors, and the goal of DeFi projects now is to bring this to the attention of users.”

Coinbase Listing Designed For Mass Adoption

Coinbase is entering uncharted territory. However, experts are looking at the positive results that this new era could bring to the crypto community.

“This can be seen as the end of the beginning or the introductory phase of the development of the industry. Mass deployment queue! "- says Erik Kapfhammer, CEO and head of Polyient Capital at Polyient.

European Blockchain Association Chairman Michael Gebert believes these changes will begin as more cryptocurrency institutions follow suit. Gebert said:

"The fact that Coinbase reached a valuation of around $ 90 billion in the last week of trading on the Nasdaq private market will be a huge incentive for other crypto exchanges and market participants to adopt this strategy."

Gebert says Coinbase's listing decision directly mitigates concerns such as lockdown periods, "thereby allowing insiders to sell their shares on the very day the company goes public."

“Because Coinbase is initially unable to issue any new shares, the equity ratio cannot quickly dilute, resulting in existing shareholders not losing a single percent of the company’s ownership they currently own,” he said.

While only time will ultimately tell whether this decision is right or wrong, Sheraz Ahmed of STORM Partners believes the move is optimistic for the industry as a whole.

“Even though Coinbase is first, I foresee that in the next couple of years we will have many more companies like this going public. The return of the bull market has brought a new wave of interest and money, and now that the institutions are finally here, there is no limit,” says Ahmed.

The cryptocurrency industry is finally gaining recognition

Industry experts see the Coinbase listing as an important turning point for the industry. The company has the opportunity to lead the market and raise awareness in the traditional financial space.

Kapfhammer says the listing will boost confidence in the industry. Something that has been lacking for many years, especially in the eyes of traditional financial institutions.

However, with the rapid growth of the market over the past year. Inevitably, the time has come for the industry to expand and everyone will be keeping a close eye on what happens on opening day.

“Many crypto advocates and investors are investing in the success of this IPO, and the impact will be felt throughout the sector. Will it be a success? In a way, just reaching this milestone – the public listing of stocks – is an incredible achievement in itself,” says Kapfhammer.

As Coinbase takes the next step towards global adoption, everyone in the industry will wave flags in favor of the company as it is the leader.

Capital markets will now have to grasp and accept the fact that cryptocurrency companies are not going anywhere. Kapfhammer sees the move as a step in the right direction for investing in other cryptocurrency companies in the future, leading to wider adoption.

IPO symbolizes market maturity

Listing on Coinbase marks the first step towards global acceptance of an industry that capital markets constantly criticize. Traditional finance finally got up and took notice.

“You can expect development in this space both in terms of investment flows and in terms of expansion and development of new services with associated infrastructure,” explains Kapfhammer.

Some in the crypto community may have viewed the listing as an established order sale. Here Ahmed explains that this is not the case.

“While listing on a stock exchange sounds like the exact opposite of blockchain disintermediation, sometimes you have to master the rules before you can break them,” he says.

The ability of a cryptocurrency exchange to be listed on a major stock exchange is quite a feat. Especially in a heavily regulated country like the US. A public listing is an important milestone and a win for the market, no matter how the IPO goes.

Rate this article
Blockchain media