Yes, Coinbase IPO is happening, and very soon, you will be able to purchase shares of the best crypto trading platform. The timing of this is just awesome for the company. With the growing hype of Bitcoin and everything that is going on in the cryptocurrency world, Coinbase has gotten a lot popular. The company is now the largest cryptocurrency platform in the US and is already doing things differently. Unlike traditional IPOs, the company plans to go for a direct listing like Spotify and Palantir. And as the hype of cryptos increases, it will positively impact the share prices of Coinbase.
Coinbase IPO details
The plan to go public is huge, and it is actually a good time for the company to do so. As of its last evaluation, Coinbase is worth well over $8 billion. This was back in 2018, so we can expect the numbers to have increased further in the last 2 years. The platform’s increased usage has also resulted in much greater revenue and profit for the company. I am also speculating that the company’s share prices are going to see a huge increase if Bitcoin stays on the rise.
At the same time, the recent fiasco that Robinhood has pulled meant that many users are choosing Coinbase over it, even if there is a commission involved. In an IPO, companies generally hire banks to sell their shares, and this comes with huge costs and fees. But, the banks help the company to understand the market as they are new to the public trading sector. But, it seems that Coinbase plans not to have any banks in between. And will actually go for a direct listing in the IPO.
This way, they can skip a lot in fees and the process of working with banks for the IPO. But there is a catch, in normal IPOs through banks, companies generally look to raise funds, but in a direct listing, that’s not the case, and they are just selling their existing shares to the public.
Will it affect Bitcoin?
Saying that the price of Bitcoin is going to affect that of Coinbase is not wrong, but it’s not exactly accurate. The fact is that Bitcoin and Coinbase can go hand in hand. With the increasing rise in the investment in cryptocurrencies, we can expect an increase in the revenue, profits, and price share of Coinbase. At the same time, increasing numbers of the platform would mean that Bitcoin and other cryptocurrencies still are a matter of interest to investors. It’s kind of a package deal, I would say.
And if we go on to see Bitcoin become a replacement to the dollar and it is overturning silver and consequently even gold, it is going to be big for Coinbase. It will be all the more reason for investors to flock to the platform and invest in the currency. The price of Bitcoin is already up 500% in the last year. And even though a few bear days don’t look good for cryptocurrency, it is definitely something we should worry too much about.
I don’t know if Coinbase going public will affect Bitcoin, but the increasing use of the currency is going to affect Coinbase IPO. Coinbase must be hoping that the Bitcoin rally begins before they go public. What do you think about the Coinbase IPO? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.