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Coinbase was an instant NASDAQ success, but the rally heavily depends on crypto rates



Coinbase cap reaches 100 billion in minutes



15.Apr.21 9:56 AM
By Shawn Highstraw
Photo toinnov.com

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Coinbase was an instant NASDAQ success, but the rally heavily depends on crypto rates
Coinbase, one of the largest platforms in the world to trade cryptocurrencies like bitcoin, has been able to entice a lot of investors to sign up for its IPO in New York. Due to its huge popularity, the company opened at $ 381per share. That's worth $ 99.6 billion in market capitalization.

Coinbase was founded nine years ago by Brian Armstrong and is used to trade around fifty virtual coins, including bitcoin. Now that the prices of these coins are skyrocketing into the stratosphere, it seemed like the perfect moment for Coinbase to take advantage of this boom and go to the stock market itself.

And the company got that right. One share immediately cost $ 381 at the start of the stock exchange adventure, compared to the $ 250 target price set by the Nasdaq Technology Exchange. Investors clearly believe in the potential of the company and its operations and gave it a boost on its first day. Armstrong could spend more than 15 billion dollars in his pocket.

The cryptocurrencies themselves also reacted to the IPO of Coinbase. Bitcoin went up about 5 percent since the beginning of the week, ether even added 10 percent.

The fact that these prices are so similar indicates that Coinbase's performance is strongly linked to the performance of the cryptocurrencies. The company itself warned of this in its so-called prospectus, a document with financial figures that any company that wants to go to the stock exchange has to submit.

"Our results can and will fluctuate significantly due to the volatile nature of crupto currencies," it says. In other words, if the bitcoin takes a dive, Coinbase will most likely do the same.



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