The big day is finally here! The Coinbase IPO via a direct listing on Nasdaq is today, with anticipating high among investors who describe the public debut as a watershed moment for the crypto industry.
Coinbase has no official headquarters, and the company opted to avoid an initial public offering without relying on Wall Street investment banks serving as underwriter to set the price.
This is the first major direct listing for Nasdaq, and it has given Coinbase shares a reference price of $250 for the reason that COIN had not had a recent sustained trading in a private placement market. This price would value the US based crypto exchange at around $65.3 billion on a fully diluted basis.
Meanwhile, the implied valuation of Coinbase on the FTX exchange was almost $150 billion on Tuesday.
But, of course, the reference price is not an offering price, with Nasdaq explaining that nobody has purchased or sold shares at that price.
In fact, the action is yet to start.
Historical experiences show that it might take until after noon ET for market makers to work out the price of the initial trade in a direct stock listing. These are just early indications of the pricing being reported by financial news services.
For example, Reuters indicates that Coinbase was set to start trading at $380, well above the reference price that Nasdaq has set for the biggest cryptocurrency exchange in the United States.
In any case, the price of COIN is sure to be very volatile, and analysts expect it to fluctuate along with the prices of several of the other popular cryptocurrencies.
It promises to be a wild ride.
And, what many believe, potentially a watershed event for the crypto industry that Wall Street will focus on to gauge investor appetite. Today is the day when the cryptocurrency space has a chance to show the world just how big of an industry it is, and how much it is growing.
All roads led to this!
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