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Coinbase Set to Use Nasdaq on Its Direct Listing Debut

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by Steve Muchoki · 3 min read
Coinbase Set to Use Nasdaq on Its Direct Listing Debut
Photo: Depositphotos

The Coinbase direct listing on Nasdaq is set to attract more investors into the crypto market industry.

Digital currency exchange Coinbase Inc has chosen the Nasdaq trading platform for its awaited direct listing debut. According to news outlet theblockcrypto.com, Coinbase is set to go public in the coming weeks following a successful secondary offering on the Nasdaq Private Market.

Notably, Coinbase filed for a confidential S-1 with the United States Securities and Exchange Commission (SEC) in mid-December. The company, which is highly valued due to the nature of its business, is set to attract investors’ attention in Wall Street in the coming quarters.

Moreover, Coinbase pre-IPO contracts are trading on FTX with their value having skyrocketed to out the company over $70 billion in valuation. Reportedly, Coinbase is set to sell approximately 240 million shares during its direct listing on the Nasdaq trading platform.

Bigger Picture on Coinbase Direct Listing on Nasdaq

Previously, the company sold its shares on the Nasdaq Private Market at a price of $200, thus valuing the company at roughly above $50 billion. Since the company has opted for a direct listing, there may be no underwriters for its shares. Besides, the company is not going public to raise more capital but rather provide liquidity for the private investors. The absence of underwriters is set to increase the Coinbase share volatility during the initial days.

In addition, the volatility is expected to spike further fueled by the speculation both in the crypto industry and from the Wall Street retail investors.

Since its inception eight years ago, Coinbase has been involved in prior private fundings to further its ecosystem development. The fundings have enabled the crypto exchange to rise to the ranks of the top spot market in the world. Notably, Coinbase Pro is currently ranked second after Binance with a trading volume of $2,428,547,897.

Among the notable prior fundings includes the $5 million series A back in 2013 led by Fred Wilson from the venture capital firm Union Square Ventures. Later that year, the company raised $25 million from venture capital firms Andreessen Horowitz, Union Square Ventures (USV), and Ribbit Capital.

At the beginning of 2015, the company raised $75 million, led by Draper Fisher Jurvetson, the New York Stock Exchange (NYSE), and USAA. Coinbase has gained popularity among crypto investors who use it to buy and sell digital assets.

The firm operates in approximately 32 jurisdictions and offers trading of Bitcoin, Ethereum, Bitcoin Cash, Litecoin among others. Notably, Coinbase offers two core products including a Global Digital Asset Exchange (GDAX) and an API for developers and merchants to build applications and accept payments in both digital currencies.

The Coinbase direct listing on Nasdaq is set to attract more investors into the crypto market industry. In any case, exposure of a crypto-related firm on the public domain will affirm the crypto market industry especially in the United States where there have been ups and down on regulations.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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