The world of cryptocurrency is on the verge of a major milestone with today's launch of the digital asset exchange Coinbase on NASDAQ. This is a gigantic achievement for the largest and most important of its type platform in the world.
Expectations are growing and getting higher and higher. The result? More fuel for the bull run.
The Numbers Behind the Coinbase IPO
This landmark achievement for Coinbase will ignite a robust set of conversations and predictions. It’s kind of a betting pool for the experts — Coinbase and the crypto community always wins.
D.A. Davidson, a wealth management firm, was one of the first to make — and change — its prediction. Initially, they expected a price of $195. Yet, after an incredible Q1 for Coinbase, they increased their forecast. Now, just a few hours from listing, they expect a price of $440 per share — a 125% increase.
Coinbase will not issue new shares. Rather, it will offer existing ones to the public. There are 114.9 million shares to be offered — and this could lead to Coinbase's valuation as a company to soar even higher. And even more impressive is Coinbase reaching a 90B valuation in a private auction market in March. It seems like the sky's the limit for Coinbase.
Coinbase IPO: The Impact From the Experts' Point of View
But even when all is smooth sailing for Coinbase, the debate is still open.
On one side, we have Alberto Jauregui, growth leader of Pocket Network, a bit worried. He says that while it is an achievement, the potentially centralizing impact of Coinbase is worrisome. He says this goes against one of the benefits of cryptocurrencies — decentralization.
On the other hand, we have Kadan Stadelmann, CTO of Komodo, reminding us that a year or two ago this level of adoption seemed like a dream. He says that Coinbase going public is akin to going straight to the big leagues.
Gunnar Jaerv, COO of First Digital Trust, has a similar view to Stadelmann. He says Coinbase is taking the first step, one that will be followed by many other exchanges that are ready to take on the challenge.
Although opinions are mixed, the feelings are entirely positive. We can only wait to see how the launch goes and what its immediate impact will be.
There are still many things to take into account, though. We don't know how much Coinbase's valuation will fluctuate in the market. We cannot tell if it will stay the same or only go up.
Yet, one thing is certain: Coinbase's listing further legitimizes a movement that has been working for years. This milestone is extremely important and could be the fuel that sparks greater institutional interest.
