CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG. Coinbase directly integrates with 15+ blockchain protocols, supports 90+ crypto assets for trading or custody, and offers a suite of subscription products and services. Using Coinbase as a proxy investment might also explain the valuation, which critics have suggested is too high.

In March 2021, the company agreed to pay $6.5 million to settle regulatory claims that it had reported misleading information about its trading volumes. Also in March, Coinbase announced that it was establishing a business presence in India and hiring employees for IT services, including engineering, software development and customer support operations. The company also announced plans to open a physical office in Hyderabad. In January and then March 2017, Coinbase obtained the BitLicense and licensed to trade in Ethereum and Litecoin from the New York State Department of Financial Services .

Coinbase IPO: How much of its success will depend on Bitcoin?

Coinbase takes security and compliance very seriously and as of December 31, 2020, over 15% of their full-time employees were dedicated to legal, compliance, finance, and security. Since inception through December 31, 2020, Coinbase has generated over $3.4B in total revenue. The company also shows an output of product capabilities by end user . It went as high as $429 and ended up closing at $328 on an opening day. It closed with a valuation of around $62 billion after nearly touching $100 billion. You may change your billing preferences at any time in the Customer Center or call Customer Service.

In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

We Have Found More Ways For You To Make Money

But investing also carries a risk – and there is no guarantee that your investments would increase in value, so you could receive back less than you initially invested. COIN stock is trading about 50% off its post-IPO highs and may re-test the all-time lows at the beginning of 2022. Bulls will wait for a false breakout of the key support level $200+ to buy Coinbase shares at the lowest price that keeps a positive.

  • It is the largest cryptocurrency exchange in the United States by trading volume.
  • Bitcoin is also not regulated and the biggest risk to owning Bitcoin is its possibility of being banned, Nick Maggiulli, Chief Operating Officer at Ritholtz Wealth Management previously told Money.
  • Launched in 2012, Coinbase now lets anyone with a credit card buy, sell, and trade over 100 different cryptocurrencies, including Bitcoin and “altcoins” like Ethereum and Litecoin.

After all, the #1 stock is the cream of the crop, even when markets crash. That’s approximately $111 billion just sitting around forgotten. These underlying risks make Coinbase a risky stock that’s likely to be overvalued through the internet hype machine.


Coinbase Earn, a cryptocurrency learning platform that rewards users with small amounts of altcoins for watching videos and taking quizzes to learn about them. USD Coin, a digital stablecoin that lets customers put up U.S. dollars in exchange for a cryptocurrency that has the same value but can be traded more quickly. Coinbase’s 60 second commercial during Super Bowl LVI achieved viral status and was considered to be the most effective of any commercial during the game. The ad, credited to Accenture Interactive, cost $217,000 per second (or $13 million) and featured only a black, screensaver-like screen with a bouncing color changing QR code.

  • Meanwhile, another trend in recent days—institutional interest in cryptocurrencies—has helped bitcoin and others set new record highs.
  • We are an independent, advertising-supported comparison service.
  • If you want to know more about theBitcoin 2021 bull runorEthereum 2021 bull run, be sure to check out our earliercrypto bull run articles.
  • The investment manager already had considerable exposure to cryptocurrencies.

Financial documents show Coinbase has been making money, unlike other companies going into their public debuts. Last year, the company went from a loss to a profit and came out on the other end with $1.14 billion in revenue, according to Bloomberg. Mallika Mitra is a reporter at Money covering money trends, investing and cryptocurrency. Her work has also appeared in Bloomberg News, CNBC and elsewhere. At last check, the digital currency was down 1.38% at $55,044, according to Coindesk. Bitcoinbreached $60,000 over the weekendand has gainedmore than 22% in the past 10 days.

You will be able to open, close and edit positions in just a couple of clicks. When you combine financial data with expert insight, you will be able to decide how much of your money you want to put into Coinbase stock. For example, if Coinbase shares rose to a price of $275, you would suffer a $5,000 loss instead, excluding additional costs. Coinbase’s results are worse than expected, and its share price immediately falls.

  • “We view IPO only as an instrument for short-term speculations,” Zuberov said.
  • Coinbase earned an adjusted $3.32 per share on revenue of $2.49 billion.
  • What’s unique about Coinbase stock is that your investment’s potential success is tied to the popularity and trading volume of cryptocurrencies.
  • _ttp13 monthsTo measure and improve the performance of your advertising campaigns and to personalize the user’s experience on TikTok.

The collective growth of cryptocurrencies will write the success story of Coinbase, so it would be really inaccurate to suggest that everything depends on Bitcoin. The organization filed an IPO prospectus with the Securities and Exchange Commission on 25 February 2021, a filing wherein it was mentioned that Coinbase had around $130 million worth of Bitcoin under its belt. According to Ecoinometrics, with respect to BTC’s price on 31 December 2020, Coinbase holds up to around 4,342 BTC. At press time, the valuation for the same was sitting at around $212 million. Fast-forward 8 years and users will be able to buy part of the company, with Coinbase’s IPO plans doing the rounds for a while now.

Nevertheless, for many crypto enthusiasts, it’s disruption of money and deviation from the sole promise bitcoin and cryptocurrencies stood for. Another reason why Coinbase’s IPO is a milestone event is that the crypto industry is currently in a state of turbulence. From here, cryptocurrency could receive worldwide acceptance, or its viability could shrink even further. Seasoned crypto traders and investors already caught the crypto rally that occurred around April 14. If you missed it, there’s nothing to worry about, as the market will continue to provide opportunities to both short-term and long-term investors. With all these events in hindsight, the time was right for Coinbase to get listed as a public company on Nasdaq.

This number was more than fivefold higher than the previous three months. But the fact that I’m writing about a direct listing tells you this didn’t happen. It’s possible that Coinbase’s investors wanted to go public rather than deal with an ICO because it’s more predictable. Whatever the reason, this choice has given Coinbase a remarkable opportunity.

What is a direct listing?

The company has said that its short-term performance will largely be determined by crypto prices. Nasdaq provided a reference price late Tuesday of $250, but because it’s a direct listing no shares changed hands at that price. The arrival on the public markets of Coinbase COIN, +0.51%is a big moment in the world of cryptocurrencies. The company was created just over a decade ago with the genesis of bitcoin BTCUSD, +0.18%and today stands at what many in the industry have described as a tipping point.

Which cheap crypto will Explode?

  • 1inch. 1inch Network (CRYPTO:1INCH) is a decentralized exchange (DEX) aggregator.
  • Ethereum. At first glance, Ethereum (CRYPTO:ETH) might seem out of place here.
  • Aave.
  • SushiSwap.
  • Monero.
  • Storj.
  • Basic Attention Token.
  • XRP.

Coinbase launched services in Canada and Singapore in September. On April 14, 2021, the U.S. cryptocurrency exchange Coinbase went public, with its shares opening at $381. This marks a milestone in the world of cryptocurrencies, as Coinbase is the first pure-play crypto trading company to list on a U.S. exchange. Crypto exchange Coinbase intends to go public via a direct listing on April 14, based on recent information.

how to buy coinbase ipo

The Coinbase platform is a good place for traders with experience to land. An exact Coinbase IPO date can’t be set until the SEC approves its application. If it is approved, expect the company to react swiftly while the crypto and IPO markets are still hot. Coinbase is not currently publicly traded as of January 2021, and it doesn’t have its own cryptocurrency token like its competitors. A potential bounce for beaten-down Tesla Inc. shares could be worthwhile for short-term traders, says a widely followed technical analyst. On Oct. 12, the company announced Coinbase NFT, a peer-to-peer marketplace that lets users mint, collect and trade NFTs, or non-fungible tokens.