CBSE, a pre-IPO Coinbase contract listed on the crypto exchange FTX, traded at $ 594 at the time of printing, implying a valuation of more than $ 140 billion for Coinbase prior to its direct listing on Nasdaq.
What happened: FTX’s Coinbase contract, CBSE, follows Coinbase’s market capitalization divided by 250,000,000. At the end of Coinbase’s first trading day, CBSE balances will convert into the equivalent amount of Coinbase fractional shares.
Our pre-IPO @coinbase market currently implies a valuation of ~ 140 billion https://t.co/ynQaYOBVSs pic.twitter.com/IaX3upDikO
– FTX – Built by Traders, for Traders (@FTX_Official) 12 April 2021
Stock certificates have recently emerged as a new investment route for market participants to trade fractions of stocks. FTX itself has listed several stock lists, including Apple Inc. (NASDAQ: AAPL) and Amazon. com Inc (NASDAQ: AMZN), while the leading crypto exchange Binance offered tokenized versions of Tesla Ing (NASDAQ: TSLA)
“As of April 13, we estimate that there will be approximately 255 million total Coinbase shares at the end of Coinbase’s first public trading day,” FTX said on their website.
Why it matters: With a tacit revenue of more than $ 140 billion, Coinbase’s debut as a public company would probably be one of the most valuable direct listings to date.
The event itself would be a milestone for the entire crypto industry, as a crypto-currency exchange became known for the first time in history.
‘We see the Coinbase list as an additional empowerment of the space, and an important PR opportunity for the entire industry to shine as the future of finance. Coinbase has more users and more revenue than many of the biggest Wall Street players and is more profitable than any major exchange. This ratification puts most skeptics at a crossroads who need to re-evaluate their denial and frustration with the disruption on all sides, ”said Celsius CEO / CEO Alex Mashinsky.
Brad Kam, co-founder of Unstoppable Domains, was another proponent of the industry considering the impact of the upcoming listing.
See also: How to Buy Coinbase Exchange (COIN) Stock
“The direct listing of Coinbase on Nasdaq is an important step forward to bring legitimacy and main awareness in the digital asset sector as a whole. The success of Coinbase in the growth of 56 million users and the total revenue of $ 1.8 billion, shows that the adoption of consumers is real. We just need tools that make crypto easy and intuitive, ‘he said.
However, not everyone was convinced of Coinbase’s estimate of record valuations, and some market proponents felt that the company’s long-term outlook needed to be questioned more.
“Just as Google and Facebook are heavily dependent on advertising, Coinbase’s revenue is heavily dependent on crypto transactions. But although Google and Facebook have evolved, so far there is little evidence that Coinbase will diversify, ”said Collin Plume, CEO of Noble Gold Investments.
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