Is The Coinbase IPO A Safe Entry Into Crypto For Institutional Investors?

coinbase ipo

Coinbase is well on the way to becoming a public traded company. After recently filing their S-1 documents and publicly stating their intention to sell shares directly to the public via a direct listing, this IPO creates a unique opportunity in the rapidly growing space of cryptocurrencies.

By Andrew Senior
April 14th 2021

Coinbase is well on the way to becoming a public traded company. After recently filing their S-1 documents and publicly stating their intention to sell shares directly to the public via a direct listing, this IPO creates a unique opportunity in the rapidly growing space of cryptocurrencies.

In private markets, shares of Coinbase have been trading above $370 a share with a complete valuation of the company at over 100 billion dollars. For traditional minded investors who have been interested by the idea of cryptocurrencies but have yet to pull the trigger buying shares of Coinbase will provide a unique opportunity to indirectly invest into various cryptocurrencies without digitally owning said coins. The stock price and movement of Coinbase will be directly influenced by both the volume and valuation of the various crypto holdings traded on its platform. With widespread institutional adoption of BTC and the prolific growth of crypto currencies as a whole, the future is certainly bright for Coinbase.

Taking a look at Coinbase from a traditional and fundamental view, the company actually has several streams of revenue. Their immensely popular Wallet is a free service for holding crypto but they do make fees and commissions on crypto trades. Coinbase collects a margin fee, a small percentage based on the difference of the quote and actual purchase price of your crypto purchase, and a Coinbase fee that varies depending on location and transaction amount. Additionally, Coinbase is working on developing several unique services within the crypto space.

Already active is their fully integrated crypto e-commerce network for businesses to easily start accepting crypto payments. Coinbase also has been hard at work developing a physical debit card with Visa that convert crypto into USD in real work transactions. Taking things a step further, Coinbase has actually taken the steps to develop their own cryptocurrency, the USD Coin which brings with it massive potential.A buy into the Coinbase IPO is unquestionably a vote of confidence in the future of cryptocurrencies. The valuation will be high per share, historically so, with Facebook being the closest comparison. When you take a step back and look at the world of crypto as a whole that valuation begins to make sense. In January of 2021 cryptocurrencies as a whole topped over one trillion dollars in valuation.

The crypto market as a whole represents the fifth most circulated currency in the world by value. As we all know, the world of crypto is often rather volatile with large movements commonplace. Personally, I will be approaching the Coinbase IPO with much the same mindset. Sit back, dollar cost average, and buy the dips.

Disclaimer: The information above does not constitute investment, financial, trading or any other sort of advice and you should not treat any of my content as such. I do not recommend the purchase, sale, or holding of any cryptocurrency or other product and nothing I write about should be deemed as an offer to purchase, sell, or hold a cryptocurrency or other product or service. Please do your own research and consult a certified financial professional before making any investment decision. There may referral links contained in the content above.

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Published by Marcus Henry

Marcus Henry is an American Journalist with over 12 years working in the tech industry. He has been actively involved in the crypto community for the past three years and currently works out of Austin, Texas. He covers breaking news, writes perspective pieces and reflections, and conducts interviews with industry professionals and community members. Follow Marcus Henry on Twitter- @MarcusHenryHODL