Coinbase announced on Thursday, April 1, 2021 that it will begin trading on the Nasdaq on April 14th. This story is brought to light by financial news giant, CNBC.com.
According to CNBC, “The company has said it plans to register nearly 115 million shares of Class A common stock, which will trade under ticker symbol COIN. In a direct listing, the issuing company forgoes selling new stock and instead allows existing stakeholders to sell their shares to new investors.”
While Visa, PayPal and other giants have been friendly to Bitcoin and other currencies of late, this is taking things to a whole new level. It is the first major exchange that specializes in cryptocurrencies to receive SEC approval.
The opening share price has not been released. The article published on CNBC.com also stated, “Last month, an updated filing revealed that Coinbase had reached an implied $68 billion private market valuation, based on an average share price of $343.58. While private market value is less indicative of a company’s share worth, the Nasdaq will use that information to set a reference price ahead of Coinbase’s direct listing.”
Therefore, we will have to wait and see where COIN will be priced.
This is just another example of cryptocurrency going mainstream. This may make some crypto-enthusiasts nervous that there seems to be a move away from the decentralized roots of the movement; however, a company that manages crypto going public is in no way the same thing as crypto moving towards centralization. Each crypto currency will still be managed as they have always been; this news will draw more attention to the world of crypto. It will likely pull more investors into the crypto arena, further driving prices skyward.
Stay tuned for more information. I will be following this story closely and providing updates.