What is Coinbase?
As the leading cryptocurrency exchange in the United States, Coinbase has become an advanced benchmark for investors new to cryptocurrencies. Coinbase offers various products, including investing in cryptocurrencies, advanced trading platforms, accounts escorted by institutions, investment portfolios of retail investors, and its U.S. dollar fixed currency.
Coinbase was founded in 2012 and is completely licensed in all the USA’s states except Hawaii. Coinbase initially only allowed bitcoin transactions but soon began adding cryptocurrencies that fit its decentralized standards.
Its list expanded to include Ethereum, Litecoin, Bitcoin Cash, XRP, and many other companies and promised to provide more services as long as they meet their requirements.
To date, the company has raised more than $500 million in equity financing from major investors such as Andreasen Horowitz, Tiger Capital Management, MUFG, Spark Capital, and Greylock Partners. In the latest Series E financing in October 2018, Coinbase received an investment of US$300 million, making it valued at more than US$8 billion. However, the value of company shares recently sold through the Nasdaq private market reached $373, bringing the company’s value to nearly $100 billion.
After some speculation in early 2020, Coinbase’s IPO finally happened. On December 17, 2020, the company announced in a blog post on its website that “a draft registration statement on Form S-1 has been secretly submitted to the U.S. Securities and Exchange Commission (SEC).”
On February 25, 2021, the cryptocurrency exchange submitted its official documents to the Securities and Exchange Commission and released them publicly. The company’s stock will be listed on the Nasdaq Stock Exchange under the ticker symbol “COIN.”
After Coinbase went public, the news showed that the company has decided to choose a direct listing. Several technology companies such as Slack (WORK) and Spotify (SPOT) will adopt this method in 2020 instead of a traditional IPO. Coinbase will be the first publicly issued cryptocurrency exchange, and based on its performance, it can pave the way for other exchanges to follow suit.
According to the latest revision of the S-1 form issued on March 17, Coinbase plans to register as many as 114.9 million shares. There is currently no information on the company’s target listing price. But in the first quarter of 2021, according to information provided in SEC filings, Class A and Class B common stocks were privately traded at the U.S. $200-375.01.
Analysts estimate that the company’s pre-IPO valuation has exceeded $68 billion. At the same time, according to the results of a private auction on Nasdaq earlier this month, Coinbase’s current valuation may reach US$90 billion to US$100 billion. According to reports, the auction ended at the U.S. $350 per share.
When will Coinbase be released to the public? Someone said for the first time that the company would issue shares as soon as possible in late March. However, the direct listing of the stock has been postponed to April. The decision may be affected by the following news: The company will have to pay $6.5 million for a settlement with the U.S. Commodity Futures Trading Commission (CFTC), the allegation involving stock trading and data tampering regarding trading activities from 2015 to 2018 Allegations.
As the U.S. Securities and Exchange Commission (SEC) has so far been cautious about cryptocurrency assets and has rejected a large number of requests for Bitcoin exchange-traded funds (ETFs), investors will pay close attention to the listing of the stock. The Securities and Exchange Commission (Securities and Exchange Commission) announced in December 2020 that Innovation and Financial Technology Strategy Center (FinHub) would become an independent office “to enhance FinHub’s role in promoting and coordinating the policies of all SEC departments and offices. This will benefit market innovators and enhance the protection of investors.”
The latest emergence of cryptocurrency has attracted the interest of institutional and individual investors. According to reports, Citibank (Citibank) expects Bitcoin to reach $318,000. Analysis shows that the price may be feasible at around US$400,000. During the Covid-19 pandemic, the increasing use of e-wallets in the e-commerce sector this year has prompted companies such as PayPal (PYPL) and Square to include cryptocurrencies in their products, and the increase in interest may push up the Coinbase IPO If investors choose to buy stocks, the stock price will be higher. Stocks are a way to get investment in the cryptocurrency industry. The stocks owned on Coinbase will provide more diversity to hold a single cryptocurrency.