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Coinbase’s decision to go public is also an indication of the growing adoption and acceptance of cryptos by the mainstream.
It is no longer news that Coinbase is going public through a direct listing on Nasdaq. Reports have now emerged that the leading crypto exchange company is now valued around $90 billion after its shares sold for $350 per unit during a Private Market auction hosted by Nasdaq last week.
According to the report, the crypto exchange was first valued at around $77 billion in the previous month which is an indication that the valuation of the firm has risen by $13 billion. Also, its shares were trading for around $303 apiece. There are indications that some shares of the firm got to as high as $375 which could push the firm to around $100 million. Interestingly, some analysts have earlier predicted that the valuation could get to as high as that amount previously.
Notably, this could be the last private auction of the shares of the company before it finally goes public. Through these private trading auctions, the exchange is able to know where it could set its share’s price for its investors.
The current performance of the shares of Coinbase is quite impressive when one considers that it had registered a bad year during the bear period of the crypto markets in 2018. But today, the company has grown to become a major player in the crypto market as it has been recorded to have helped institutional investors like Tesla Inc (NASDAQ: TSLA) to invest in cryptocurrencies.
The decision of Coinbase to go public on Nasdaq is also an indication of the growing adoption and acceptance of cryptos by the mainstream. While this is a notable feat for the company, it is also an attestation to the growing influence of the crypto industry lately as it would now enjoy the support of the public and others.
A stock exchange listing of a crypto company would increase its legitimacy in the eyes of potential investors who might be reluctant to invest in the space due to regulatory concerns before. The listing of the firm would also lead to more regulatory clarity in the industry.