Major US-based exchange platform Coinbase, went public on the National Association of Securities Dealers Automated Quotations (NASDAQ). Coinbase shareholders on Wednesday 14th could directly sell their shares on the stock exchange under the name COIN.
As Coinbase made its debut, its market cap went up by $100 Billion. Shares were posted by NASDAQ at $343.58 a share which was 52% higher than Goldman Sachs and NASDAQ reference price. Analysts have already gone ahead to predict that prices may hit $600.
How does Coinbase Stock impact the Crypto world?
Apart from Bitcoin’s price going up, listing Coinbase on NASDAQ has brought a turn a turnaround in how people and governments perceived.
a) Validating the industry
Crypto has been in people’s mouths. Some people and hedge funds that have been trading stock have not been willing to embrace crypto. New York Times has dubbed the event as a “crypto coming-out party” because of how it has and will allow bodies to refer to it as a successful enterprise.
Cryptocurrency developers, from starters to those who want to expand will now have an example of a success story that will allow them to borrow or partner with willing bodies.
b) The industry can be now controlled
Jun Li, the Founder of Public blockchain Ontology mentioned that there will be “welcomed increased pressure” This is because of the crypto recognition that Coinbase has brought.
The move will also handle those who were not certain about crypto. They will be able to trade crypto in form of stock. The US Security and Exchange Commission (SEC) regulates the transaction making it safe.
c) What a way to gain trust
With countries like Turkey banning crypto, there has been fear that using crypto will be discontinued. Therefore, Coinbase selling its shares on the stock market has increased the trust and people now have an assurance that crypto is here to stay. People can now freely put money without the worry that everything may collapse the next day and they end up losing everything. Coinbase listed over 100 million shares. The number of shares and the price per share has also been a reason showing the reality of crypto.
d) Exposure to other Digital assets
The announcement that Coinbase was listing brought price increase on many digital assets. People didn’t just look at the listing but they looked at the crypto world. Stable coins, Decentralised Finance coins, utility coins that are listed on Coinbase ripped from the listing. Binance is giving users more options by listing the COIN STOCK TOKEN on its blockchain.
e) Capital flow shoot
The listing will bring more blockchain companies NASDAQ and more in Bitcoin Exchange-traded funds. Once the enterprise is established, crypto-focused companies and cryptocurrencies will receive more capital flow.
f) Green candles all over the place
After COIN’s listing, Bitcoin and Ethereum hit their all-time high of $64,769 and $2,385 respectively. More coins have had bullish moves the same week.
Coinbase Stock and the future
According to the founder of LogosBlock Eric Kapfhammer, the listing will be a reference of legitimate available crypto businesses that are willing to jump into the capital market. This will mean infrastructure will be built to serve the needs that come with expansion.
Unfortunately, as others are celebrating the listing, others are crying foul. Coinbase listing is risking the existence of legacy institutions. It’s now not news that the Fintech industry is a profitable venture. Banks are now finding ways to make clients stay. The competition that is coming from the development of the crypto industry is stiff on traditional financial institutions.
The excitement that comes with the listing will make people with little knowledge about cryptocurrency invest in people who know how it works. A similar occurrence has happened with gold investors who couldn’t access mines, therefore, chose to invest in gold miners.
With all said, Coinbase has pulled a great move. This move has seen and will see more changes in the crypto industry. But is the world ready for it?