Coinbase has been the biggest cryptocurrency exchange in the US for years now. However, it recently wrote a new chapter in its history, but also that of the cryptocurrency domain when it went live on its direct listing on the US stock market. Like other tech companies, it appeared on Nasdaq which happened on the same day when the price of bitcoin rallied to a new all-time record. The trading that Coinbase saw was incredibly volatile and went up and down during the course of a single day. It promises to continue such a streak in the coming weeks and months, binging some of the famous volatility of crypto to the regular stock market.
But, as the COIN continues to change in its value and thus the value of the entire company, it is important to recognize that the crypto market, along with the company, made a big step forward into not just legitimacy and user adoption, but also the broader position in the modern world. It, as a means of bringing technology, economy, and so much more, promises a vision of new force in everyday life which is bound only to keep growing.
Explosive Day of Trading
Even before Coinbase went live on the US stock market, the estimate of its value has been all over the place. This is not that unusual in the modern financial environment – previously, business situations like funding rounds showed that ventures from the esports industry, crypto business, and other cutting-edge tech domains can rack in incredible sums. Because of that, estimates of Coinbase’s value as a publicly-traded company ranged between 20 billion USD and 200 billion USD. But, reality kicked in when the stock first appeared and it quickly began to lean towards the more optimistic estimates. In the first hours of trading, the stock started at 381 USD and quickly jumped to a figure of well over 400 USD.
It then dropped and stabilized to around 378 USD. In the days after that, it slid down to closer to 320 USD, but the future trajectory seems to be open for both rises and falls. Experts are undivided on the issue of COIN (the stock market marking for Coinbase stock) volatility. It is very high and most expect that it will continue to fluctuate with the general prices of cryptocurrencies. This, in turn, is probably the most interesting aspect in the wider sense when it comes to Coinbase listing.
Economists, traders, and analysts are also unified in saying that the share sale of this company represents a milestone for cryptocurrencies. Presently, the biggest US crypto exchange is accessible to mainstream investors in the stock market. Others are underlying that this moment will also be a big catalyst for wider adoption of all kinds of digital assets.
Some are even saying that the listing is a watershed moment for the entire crypto ecosystem in the widest possible sense, covering not only the market but also the developers and all others who are in any shape or form involved with cryptocurrencies. That is why in 2021 so many experts see the crypto networks, both bitcoin BTC token and other altcoins that have some traction, maturing rapidly. That process has been ongoing for some time now, but it will also attain a lot of credibility and thus additional momentum through this single event, which is not even occurring in the crypto market itself.
There are many particularities that are unique to Coinbase as a company working in the wider tech domain. While it can be argued that many businesses come with their own quirks that are commonplace in the IT industry, this digital currency exchange and crypto wallet provider have plenty of their own. The company has no official physical headquarters and its document shows that it managed to create a stellar flow of revenue over the past several years. It also did it without any major Wall Street investment bank help or support, which is relatively rare in the US. The company now wants to see deep-rooted support from all corners of the investment space and not limit itself to big entities that hold most of its value.
The plan so far worked perfectly and COIN is doing great, even with the level of volatility and price swings. If nothing else, experts are showing that the listing is proof of the wide-reaching appeal that this company has and that by no means is it still a niche market. The same in turn applies to crypto as well, which rose across the board with the same listing process. In that period, the record for bitcoin reached an all-time high at 64,000 USD. This took place for ethereum as well, whose ETH token obtained a record price of over 2,500 USD. The altcoin market and other digital currencies did similarly well, many of them finding new record prices thanks to the Coinbase stock movement.
Investing in Crypto without Investing in Crypto
Under the current news related to the interest in cryptocurrency tokens thanks to the listing, there is also a piece of the same narrative that is only about the institutional factor. In recent months, the price of BTC tokens climbed up mainly because of the willingness of institutions to invest in it. Companies like Tesla Motors, Microstrategy, and Square invested hundreds of millions of USD into cryptocurrencies, predominantly bitcoin.
Yet, many others are also interested in this chance but fear the prospect of a government regulatory clampdown that could put the same industry in a death spin very quickly. This is why so many are interested in investing in Coinbase. The same business will ride or fail to ride the crypto general trends. But, as a listed company it has no reason to be impacted by any regulatory changes or decision. After all, it is only a tech company like any other on Nasdaq. This way, owning COIN stock will be very similar to owning bitcoin tokens, but have less risk attached from any sudden changes in any particular blockchain network.