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Following its Wall Street debut, Coinbase has toppled CME Group as the most valuable trading platform in the US.
American cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) has recorded an impressive 8.21% upsurge in the pre-market today, complementing its yesterday’s Wall Street debut performance. Coinbase stock closed yesterday up 31.31% to $328.28 and the outperforming run in the Pre-market has sent the shares to $354.50.
While the Coinbase Wall Street debut was marked by extreme volatilities pushing the stock from the opening price of $381 per share to an intraday high above $420, the closing price though coming off as a crash was more than the earlier established reference point of $250 set on Tuesday.
As reported by Fortune, market analysts have a different view about the performance of the Coinbase shares on its first day. Matthew Kennedy, senior IPO market strategist at Renaissance Capital believes the performance was a double-digit loss for new investors who “bought the open” and can hardly call it a success. However, Wedbush Securities tech analyst, Dan Ives is bullish on the stock.
“Over the last six months, there have been lingering worries about what the appetite would be by the Street around crypto and Coinbase. I’d call it a home run success on the first day,” he said, adding “Obviously its success is not going to be just about one day, it’s how ultimately they execute.”
There has been a growing concern with respect to Coinbase’s fee structure which forms the bulk of the company’s revenue source. Market analysts warn that the company may face a shrink in its earnings in the near future if it fails to modify its structure as competing trading platforms with no-fee structures are bound to proliferate in no distant time.
Coinbase Becomes the Most Valuable Exchange after Wall Street Debut
Following its Wall Street debut, Coinbase has toppled the American global markets company CME Group Inc (NASDAQ: CME) as America’s most valuable trading platform. The Brian Armstrong-led digital asset exchange attained a market capitalization of $85.8 billion on a diluted basis going by its Wednesday closing price of $328.28 per share, a valuation way above CME’s $74.24 billion market cap.
The milestone is a significant one as it shows a shift in investors’ interest for a company that thrives primarily in relation to the growth of the global cryptocurrency industry. While the exchange’s future potential is embedded in the anticipated growth of Bitcoin (BTC), market analysts have predicted that the firm will be an index for many other digital asset products being created today.
There are tons of hurdles Coinbase will have to cross in order to maintain this impressive first trading day milestone. One of these besides the highlighted competition from other cryptocurrency exchanges includes the aspect of regulations and innovative product rollout to help cushion the effects of any potential dip in trading activities.
Per product rollout, Coinbase will seek to bolster its role in keeping digital assets for clients through its custody service while seeking other creative offerings to serve the growing cryptocurrency ecosystem.