April 14th was considered a watershed moment in the digital asset industry by many cryptocurrency enthusiasts around the world, marking the day Coinbase, one of the world’s largest cryptocurrency trading platforms, appeared on the NASDAQ via the live list. As you can imagine, at the time, the ledge was riddled with market volatility when Bitcoin (BTC) rose to $ 64,800 on the day before the list went live.
Before Coinbase Nasdaq debuted, the COIN reference price was set at only $ 250, with all company employees receiving a total of 100 shares each. Also, in the real cryptocurrency, COIN’s debut was hampered by volatility, as stock prices rose to around $ 430 just minutes after they started trading.
However, after this positive price movement, COIN’s value dropped – all within hours – to complete its debut with the respectable price of $ 328. Since then, the COIN value has continued to fluctuate between $ 320 and $ 345, and stabilized at the lower end of the range exactly one week after listing. At the time of writing, the total value of the stock market is estimated to be less than $ 64 billion, just less than the $ 100 billion previously estimated.
Real hack or just propaganda?
COIN’s debut in the traditional financial sector is widely seen as an important step forward in the cryptocurrency industry, especially as it provides investors who may not be interested in trading digital assets with an indirect effect on cryptocurrencies.
Jill Ball, project manager for Shell’s first three blockchain projects in multinational oil and gas, and business director for Dusk Network, a privacy-focused blockchain protocol, told Cointelegraph that a direct listing from Coinbase could express their views on the matter. . so interesting. Divorced. -Up encourages companies and regulators who still stick to the “everything related to cryptocurrency is bad” stance, and adds:
The market cap of COIN now exceeds the total value of most of the world’s largest traditional exchanges, and they’ve done so for many years, not decades. Obviously, they operate to the highest standards, otherwise a Nasdaq listing would have been out of the question, so it appears that self-regulation in this case had enormous benefits. ”
Indeed, with Coinbase having the potential to bridge the gap between the traditional financial sector and cryptocurrencies, an increasing number of major players appear to be very optimistic about COIN. For example, New York-based asset management firm Ark Invest quickly repurchased more than 1 million shares – currently worth around $ 350 million – that will be distributed across the company’s three ETF proposals.
It is also worth noting that in 2013, the US venture capital firm Union Square invested in Coinbase at $ 0.20 a share, effectively allowing the company to accumulate in excess of $ 4.6 billion.
However, the company’s biggest sponsor to date is venture capital giant Andreasen Horowitz through its cryptocurrency A16z, “which holds about $ 9.7 billion in shares on the cryptocurrency exchange.” Just seven months after completing its Series A financing round, A16z topped the second round for $ 25 million, according to the prospect of Coinbase, buying shares at $ 1 per lot.
In October 2019, the company managed to acquire $ 57.1 million in Union Square shares at $ 23 a share, followed by another $ 30 million in Coinbase shares at $ 28.83 a share after just 12 months.
Outside of Union Square and A16z, venture capital firm Ribbit Capital is the third-largest investor in Coinbase, and the company holds a total of 12 million shares in cryptocurrency exchanges, valued at approximately $ 3.9 billion through a Series A funding round. Some of the other major players who participated in the campaign are Tiger Global, Institutional Venture Partners, AH Equity Partners, and DFJ Growth.
Additionally, internal reports indicate that a number of Coinbase’s early investors, as well as members of senior management, sold billions of dollars in shares shortly after the direct listing. For example, Alesya Haas CFO Coinbase sold about 255,500 shares at $ 388.73 a share, keeping certain options. Likewise, Brian Armstrong, the platform’s current CEO, sold 749,999 shares in three deals at prices varying for approximately $ 291 million.