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Coinbase is one of the largest cryptocurrency exchanges, which offers 114.9 million shares on the 14th of April. These shares were offered through the method of direct listing on the Nasdaq exchange. You will be glad to hear that the company has set the very first digital currency exchange record, which has gone public in the US. It is essential for you to know that the SEC approved the direct listing of the Coinbase platform for the 14th of April.
As you all know, Coinbase is the regulated cryptocurrency exchange of the united stated. It facilitates the buying and selling of bitcoin and other cryptocurrencies. It is one of the easiest and simple platforms for crypto investors in which they can buy, sell and even hold the cryptocurrency in the most secure way possible. So, if you are interested in bitcoin mining, check the pros and cons of day trading of crypto now.
In what way does the coinbase platform make money?
- You might be wondering how the coinbase platform makes money. Well, the answer to this question is quite simple the Coinbase platform makes money by charging the users when they buy and sell the cryptocurrency. It is essential for you to know that every time a user of this platform purchases, deals, or even sends the cryptocurrency, then they need to pay a specific amount of fees for it.
- This is basically a commission for the transactions that are performed on this platform. The company also makes money on custodial services, crypto rewards credit cards, and margin fees. The Coinbase company also released its result of the Q1 earnings, which showed imposing figures. You should know that the US crypto huge announcement showed about 56 million verified users on this platform, and the total revenue was $1.8 billion.
- The net income is estimated at $730 million to $800 million approximately. You will be amazed to know that Coinbase’s platform first-quarter performances were really more excellent than the combination of the last two years, which has made this IPO look much more promising to the users. The thing is that the members and the investors of the cryptocurrency industry rally have a lot of things to say about the impressive numbers of Coinbase, which shows that the IPO of Coinbase really has a very positive aspect.
- It is important for you to keep in mind that Coinbase is a company that is highly better than every kind of financial service. These were the words said by Barry Silbert, who is the CEO as well as the founder of the digital currency group, and he said that it makes him happy. He made this statement through a tweet.
What will be the value of a share of Coinbase?
- First of all, you should know that the value of the IPO depends largely on demand and how it is compared to the other companies in the same industry which have already turned into the public company, growth prospects of the company, and the narrative story which surrounds the company. After considering all these aspects, the value of the IPO is determined. But when we the Coinbase company then it has a unique method for it.
- This is the first cryptocurrency exchange in the US that is going public. When the company released its Q1 earnings report, then it can be seen that the company have got some impressive figures which were more than that of the previous years combined. This is the thing that makes the Coinbase company stronger to be entering the public market. The value of the single share can easily be influenced by a lot of factors which also include the trading prices of the company’s primary, secondary market.
- You should know that the secondary markets are basically the markets which are for private equity where the employees of the private companies and the executives of the private company have the potential of buying and selling their stocks. This helps in allowing them to get instant access to the money earlier than the IPO, which is made public. In the secondary markets, the coin is trading on an average value of more than 343 dollars which makes the company value at more than 67 billion dollars.
From where can you buy the coin base, and what things do you need to consider?
The performance of Coinbase could depend largely on the bitcoin’s performance and the other cryptocurrency in the market. You should understand the fact that buying the Coinbase stock can mean that you have faith in the cryptocurrency’s future and that the Coinbase platform has a very strong position in order to capitalize on its success. Before purchasing Coinbase, it is a better idea for you to evaluate your faith and your trust in the future of digital currency. People were able to invest in the Coinbase shares under the ticker coin, and that too in the systematic market hours. It all depends on the brokerage platform which you are choosing for buying the shares of the Coinbase company.
What does the IPO of the Coinbase platform mean for the cryptocurrency?
The Coinbase platform has marked a step into the legitimacy of the industry. This is because the company has gone public because it has faith in the future of cryptocurrency. We all know that cryptocurrency is an unregulated currency that doesn’t have any regulation and law, and sometimes the fraudulent acts also take place in the world of cryptocurrency.
But the Coinbase listing on the public stock markets for both the players, such as the retail players as well as the institutional players, will help the cryptocurrency world to follow a road to success and legitimacy. When the business of Coinbase grows more, it will become the strong pillar for the infrastructure of the cryptocurrency and will help the industry of crypto to validate its existence in the world. More and more people will be attracted toward investing in cryptocurrency after the announcement of Coinbase company going public.
Thank you for reading!