As soon as Coinbase announced that it had commenced the process of going public and after filing the necessary regulatory papers, the firm’s pre-listing price has continued to rise following an increasing level of demand for the stock. Coinbase recently announced that it has filed the application for listing on the Nasdaq exchange which, lists shares on some crypto derivatives known as FTX.
FTX allows investors to invest in assets before the firm goes public. Now, the price of Coinbade is rising amid huge demand. The price rose by 2.4% and is now trading at $394 on FTX, the exchange for cryptocryptocurrencyatives. In January, the share still sold for $270 and has now jumped by almost 50%. However, the total amount of trades of Coinbase (CBSE) is just $71,600.
Coinbase Price Rises Prior to its Public Listing
FTX is a cryptocurrency marketplace that enables investors to buy Coinbase before public listing. In to achieve this, the exchange announced pre-existing futures for trading. Nasdaq will directly list Coinbase shares in the market weeks to come. At present, Coinbase shares are still available on the secondary market for trade.
That is, specific individuals such as the company’s workers who are already Coinbase shareholders can trade it before it goes public. The exact price of the stock is not yet known. A request sent by reporters to NASDAQ to ascertain how much the private price will sell for has not been responded to. However, some reports claim the share price will settle around $370 while the company’s valuation is $100 billion.
Since Coinbase announced that it was going public, concerned people have been hyping the firm’s value. Bitcoin’s price rose to about $52,000 from $50,448 following Coinbase’s announcement of the steps to take on the listing. In the detailed documentation sent to the Securities and Exchange Commission, (SEC), Coinbase’s business is thriving as it reportedly earned $320 million in profits, courtesy of the Bitcoin’s bullish movement. This is also wonderful given the firm’s reported loss of $30 million in the previous year.
The Crypto Industry Is Becoming Increasingly Popular
Coinbase’s IPO is coming following the surge in Bitcoin’s price which has risen by 75% since the beginning of the year and has crossed the $1 trillion The recent move by Tesla and Square to invest more in Bitcoin has spurred the growth of the digital asset seen as the benchmark for cryptocurrencies. This year has seen more institutional investors adopting Bitcoin as not only a store of value but also a hedge against inflation.
Coinbase makes more than 95% of its earnings from trading and has raised millions of dollars from investors. By going public via direct listing, Coinbase is bypassing underwriters and is creating an IPO instead of new shares. The public listing of Coinbase is a testament to the fact that the crypto market is establishing a stronger foundation in its 12th year of establishment.
Now, cryptocurrencies are now seen as an alternative investment, a store of value, and a reliable medium of exchange. Coinbase is a leading exchange in the crypto industry. As a pioneer crypto exchange worldwide, Coinbase boasts of over 43 million users.