Coinbase’s direct listing could be a transitional ritual for the blockchain and cryptocurrency industry, and the March 20 Commodity Futures Trading Commission announcement in the US on March 20 is unlikely to result in a $ 6.5 million fine against Coinbase for “laundering” and providing misleading information. To be carried over to several weeks of difference between the first cryptocurrency company to be listed on a major US exchange.
But the questions about Coinbase’s upcoming Nasdaq appearance: Is the cryptocurrency exchange really worth $ 100 billion as proposed in an auction prior to the IPO? Is this the right time? Are the company’s profits heavily dependent on the market price of Bitcoin (BTC) and Ether (ETH)? And is the ROI really sustainable – is this really an industry breakthrough, and if so, what cryptocurrency might be after the Wall Street test?
But first, what should be done about allegations of misleading stock market size and “closed trade” that were settled with the CFTC? Can they make a list?
“The CFTC announcement should not track investor interest in a direct listing on Coinbase,” Edward Moya, senior market analyst at forex trading firm Oanda, told Cointelegraph, because “cryptocurrencies have been accepted by all.” In his opinion, any fines will have a short-term effect. In fact, they can even reassure potential investors in some way and provide additional assurance that the place is regulated, Moya told Cointelegraph.
Kavita Gupta, CEO of Delta Growth Fund LP and Fintech.TV, and a visiting faculty and faculty member at Stanford University, appears to agree. “As an investor, I take this as a positive sign that Coinbase is clearing any issues before it is released to the public and will play fairly with regulators and government investors,” she told Cointelegraph.
On the one hand, the fine could interfere with the listing process, as David Trainer, CEO of investment research firm New Constructs suggested, although the fine is relatively small, indicating that illegal activity could be considered relatively minor – “so it can’t” yet. That said, the problem of honesty in trading on the stock exchange is a serious problem – no matter how big or small, ”he commented on Cointelegraph.
“The fine is just a slap in the face to Coinbase,” Bobby Ong, co-founder and CEO of cryptocurrency aggregator CoinGecko, told Cointelegraph, adding, “It was mentioned as a risk factor when registering Coinbase S-1, and this agreement removes the risk factor.”
Last December, Moya told Cointelegraph that Coinbase’s first IPO was “just in time” due to the growing investment appeal in Bitcoin. Has anything changed?
Not right. “Institutional interest and fragmentation are still in the early stages of mass acceptance, and this is the prime time for optimistic prospects for cryptocurrencies,” Moya replied, adding, “Finally, governments are putting pressure on bitcoins and squeezing their digital currencies. This could raise fears that the bitcoin party is over. […] Coinbase is under pressure to advertise itself. ‘
“This is a great time for Coinbase to test the waters,” Gupta commented. The IPO and IPO markets of specialized buyout firms are not yet complete; Cryptocurrencies have soared in recent months; There is huge liquidity, “and demand in the technology market creates the best time to call Coinbase.”
But how much does Coinbase cost as a public company? As mentioned earlier, the company’s IPO was previously estimated at $ 100 billion – is that real?
Vladimir Vishnevsky, director and co-founder of Swiss asset management company St. Gotthard and fund management, told Cointelegraph that the $ 100 billion valuation could be justified given the potential of the digital asset sector and the “potential impact it could have on our lives”. In the future. “in addition to:
“If market participants are willing to keep bitcoin targets / forecasts in the $ 300,000 to $ 400,000 range, is Coinbase’s $ 100 billion valuation the one that overshadows?”
Moya was also optimistic, but he wasn’t fully prepared to swallow $ 100 billion. “Coinbase’s market cap is likely to be between $ 80 billion and $ 90 billion, but that could easily change with the next 20% for Bitcoin.”
The coach was skeptical. “A more realistic estimate would probably be closer to 10-25% than today’s estimate,” Trainer told Cointelegraph. “Others have strayed away because they lack a reliable fundamental perspective to give them a sense of value in line with core business economics and long-term competitive positioning.