COINBASE IPO: What You Should Know
Coinbase is set to go public on the Nasdaq on April 14th, under the ticker COIN, received that full-throttle boost from its recently published 2021 quarter-one results.
So far it has been an amazing year for cryptocurrencies going from several coins recording new ATHs and now Coinbase going public, such an interesting journey it has been for this Cryptocurrency industry.
A look at the Coinbase listing shows the nature of these upcoming public listings, The IPO will be a direct listing, meaning there are no underwriters setting a target price or book building process which values the stock at a certain price. The company will simply list its share on the stock exchange.
Because there are no underwriters, meaning no one is assuming the risk in connection to reselling the stock shares or performing stabilizing transactions, there is the potential for the high volatility of the stock price immediately after its listing.
Coinbase will be selling 114 million of its shares directly to the public according to its SEC filing. It is also important to note that there is no fixed or determined amount of shares that will be for sale as other shareholders may or may not sell their shares.
The company further writes “The company will not be paying dividends on its stock, nor does it plan to pay dividends to shareholders in the future. Coinbase writes that it intends “to retain all available funds and any future earnings for use in the operation of our business and do not anticipate paying any dividends on our capital stock in the foreseeable future.” This is huge, to say the least, one may begin to wonder how the investors will reap their rewards for investing, please note this is a cryptocurrency with great potential to appreciate in value just like you have in other exchange coins/tokens.
We have witnessed several exchange tokens deliver astonishing returns and clearly, Coinbase will follow suit and of course this is a huge boost for this young industry as investor confidence will skyrocket.
Coinbase is a cryptocurrency exchange with over 43 million retail users around the globe, it generates its income through trading fees.
Listing of Coinbase on Nasdaq is no doubt a huge boost for the cryptocurrency market, we firmly believe that Cryptocurrency is taking whole new dimensions given the series of positive developments we have experienced so far, this goes to show the level of confidence that has graced this industry.
Coinbase’s sole focus on the crypto field allows it to adapt to new crypto-related developments and, thus, remain a central player in the field. The company plans to launch new crypto-related products in the future and add more assets to its platform.
Some persons expressed reservations about Coinbase given the strict regulatory compliance it has to go through, it’s on this premise that some of us may begin to question if Coinbase can actually thrive well given the high volatile nature of the Cryptocurrency market. The company’s revenue, assets, and operations are dependent solely on the crypto market. Other risks include entering a highly regulated environment, the danger of security breaches to the platform, and the highly competitive nature of its field
It’s our firm belief that Coinbase listing on Nasdaq marks a whole new beginning and a positive thought shift for a lot of people both within and outside Cryptocurrency, public confidence will surge obviously.