Coinbase Listing and What It Means for the Crypto Space

Coinbase listing is a significant milestone for the crypto space and is likely to result in new offerings from several crypto-related entities.

By
Utulu Hope
on
April 17, 2021
Category:
Blockchain News

Introduction 

Cryptocurrencies were once termed as a criminal tool, but now, they have gained increased adoption. Presently, traditional banks are helping many investors convert their fiat currencies into cryptocurrencies. Similarly, companies like Square and Tesla are accumulating the greatest crypto-asset — Bitcoin. Even celebrities have joined the trend by using digital art to carry out operations using Non-fungible Tokens (NFTs). 

As of the 14th of April 2021, cryptocurrencies took a big step towards further adoption when Coinbase went public. Coinbase is a popular platform that allows people to buy and sell crypto assets. The platform's shares began trading at $381 each. However, its shares eventually closed at $328.28. This resulted in a valuation of $85.7 billion — 10 times more than its previous private valuation. 

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The San Francisco-based startup becomes the first significant crypto startup to list on the U.S stock market. What more, its valuation rivals that of Facebook and Airbnb at the time they went public. Many crypto enthusiasts who believe that cryptocurrency will replace fiat currency are celebrating this landmark as it is a sign that their projection may come earlier than expected. 


Significance Of Coinbase Listing On Cryptocurrencies 

According to a venture-capital investor, Bradley Tusk, Coinbase's listing verifies that crypto is real. The CEO of Tusk Ventures made this statement in support of Coinbase. In his words, "Any industry that can launch an IPO of this size is without a doubt a real thing, and it's proven by the market."

This listing gives mainstream investors the ability to gain crypto exposure in a business approved by the Securities and Exchange Commission. This means that they can carry out transactions on these businesses without having to be wary of purchasing risky digital currencies directly. 

Coinbase's listing will give financial enthusiasts a clearer view of its healthy profits. This is something most highly valued tech startups do not have at their disposal. With this, Coinbase will gain more attraction, which will further increase the interest in cryptocurrencies. Coinbase has a net profit of $730-$800 million in the first quarter of 2021. During this period, the company generated $1.8 billion in revenue. 

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With all these, the future of cryptocurrencies is still questionable. That said, cryptocurrency enthusiasts have predicted that blockchain technology will ensure that a decentralized financial system without the need for a government or bank is created. This is part of Coinbase's plan to revolutionize the financial world. If this is achieved, there will be increased financial freedom. 

Furthermore, Coinbase's proposed revolution may face some challenges. In recent times, users of the platform have complained about its unresponsiveness. In other words, Coinbase had struggled to cope with the demand of its users.  Also, a severe correction in the price of crypto assets may lead to less platform adoption.  


Conclusion 

Coinbase’s direct listing is believed to be a watershed moment for the crypto world and is likely to bring forth new offerings from other crypto-related entities. Since the debut of Coinbase on the stock market on Wednesday, Bitcoin has been surging high. In the future, analysts have predicted that the milestone will be an extraordinary moment for cryptocurrencies as a bullish trend is expected. 

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Utulu Hope

UC Hope is a passionate fan of crypto who could weave the latest event into sparks of inspiration and information. He leaves no stone unturned to get to the core of a story. Aside from writing, he spends his hours poring over algorithms and protocols, preparing for a future career as a computer programmer.