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Coinbase is a renowned trustable exchange that allows you to buy, sell and trade cryptocurrencies like bitcoin. Cryptocurrency trustable exchanges are the only platform where you can potentially buy and sell digitized coinage, and there are ample trustable exchanges in the industry.
Coinbase is underlined as the largest cryptocurrency exchange to be existing at the instance as per the market capitalization. Coinbase originated in the United States at the very first instance and is now rendering services in almost every possible region.
Coinbase is now officially a public organization; rather than adopting the traditional IPO mechanism, Coinbase has opted for a pretty unusual and nontraditional method of direct listing. An undeniably direct listing is utilized by few renowned companies such as Spotify and Palantir. The IPO of Coinbase is an exceedingly big step in the cryptocurrency industry and is very optimal for the future of bitcoin. Below mentioned is everything you should know about Coinbase IPO; let’s have a look?
What is Coinbase?
Coinbase is a trustable cryptocurrency exchange that originated in the United States. Bitcoin is an extremely fascinating investment asset with a gigantic return of investment. Suppose a user is willing to invest in bitcoin; there are merely two methods to get bitcoin, the foremost one is computing progression bitcoin mining, and the second one is buying bitcoin from a trustable exchange. check this platform bitcoin-money.app
Bitcoin mining is an exceedingly complicated and time-consuming progression; all the more, it requires ample resources to be invested in the progression. Bitcoin mining primarily aims for verifying bitcoin transactions, and in order to verify the transaction, every miner has to solve a complicated math puzzle.
The prominent reason for solving the math puzzle for verifying the transaction is to assign a nonce value to every possible transaction. In a nutshell, bitcoin mining is exceedingly challenging, and you must have a gigantic set of resources to avail profitable results in your bitcoin mining journey. However, on the other hand, buying bitcoin from a trustable exchange is exceedingly easy. Coinbase is one of the most popular and oldest trustable exchanges, which allows you to buy and sell your cryptocurrency just hassle-free.
Coinbase is not merely a trustable exchange that allows you to buy bitcoin and other cryptocurrencies, but it also offers ample other services such as Coinbase pro. Coinbase Pro is a trading website where you can trade bitcoin and other cryptocurrencies; all the more, the website is subjected to ample trading features that nourish your trading experience and make availing profitable outcomes an exceedingly simple task.
All the more, you are not necessitated to buy bitcoin or any crypto wallet for storing your cryptocurrencies as Coinbase offers the utmost robust free wallet services where you store your crypto funds without paying a single dime. The prominent reasons why Coinbase is still the utmost appealing trustable exchange are its security and user secretion. Circumstances were comprehended where several trustable exchanges were hacked and hit by hackers and theft elements. However, Coinbase is sustaining the security of user crypto assets and user’s data at the very same time.
Income of Coinbase
As established ahead, Coinbase does not require you to buy a crypto wallet for storing funds; you might be wondering how Coinbase makes money. Coinbase’s primary source of income is transaction and margin fees. Coinbase is a centralized trustable exchange, and it correspondingly levies margin and transaction fees for every transaction.
The transaction fees of Coinbase are utterly dependent upon the amount of transaction, alongside the region you are making a transaction from. Margin fees are majorly 0.50% of the crypto purchase, but it hardly varies when there is a drastic shift in the cryptocurrency marketplace.
Rather than just leveling transaction fees and margin fees, there are several other services offered by Coinbase through which the platform generates revenue, such as Coinbase Commerce, Coinbase card, and USD Coin.
Coinbase commerce is a specialized service offered by Coinbase for businesses accepting bitcoin or any other cryptocurrency as a payment method. All the more, the payment gateway of Coinbase is used by several online commerce platforms.
USDC- USDC is one of the most popular stable coins to be existing, and it is the official digitalized coinage of the Coinbase trustable exchange. Every transaction of USDC is recorded on the blockchain of Ethereum; all the more the value of USDC is similar to the US dollar, which is equivalent to 1 USD. This demonstrates the stability of USDC up to an exceeding extent.
Total Market Value of Coinbase
The total market value of Coinbase in the year 2018 was estimated to be $8 billion. There is a robust foundation regarding the market value of Coinbase at the instance, but as per few robust sources, the market cap of Coinbase is nearly $100 billion, yes you read it right.
IPO of Coinbase
IPO or initial public offering is underlined as the prominent method to enter the public stock market. However, making a debut on the public stock market with the assistance of an initial public offering is exceedingly expensive as it necessitates the involvement of gigantic investment banks.
Coinbase has decided to debut the public stock market, commencing a direct listing as the direct listing is devoid of expenses in contrast to the initial public offering. IPO and direct listing are a bit different from each other as in an initial public offering; every company renders new flanged shares in order to incline new principal. However, the direct listing does not allow any company to raise new capital, and the preexisting holders or employees of the company public their stock on the stock market for selling.
Coinbase was developed by Brian Armstrong and Fred Ehrsam; the trustable exchange merely allowed bitcoin trading and investment progression at the very first instance. As per the market capitalization of Coinbase, Binance is considered the leading trustable exchange, and Coinbase is the second leading trustable centralized exchange. The current value of Coinbase share is 248.24 USD and is expected to grow further.
This is everything you should know about the Coinbase direct listing.
Thank you for reading!