Experts believe the Coinbase IPO launch next week will see a lot of volatility. As Coinbase becomes first cryptocurrency company listed on Nasdaq.
Market experts shared their thoughts on the upcoming Coinbase IPO recently. The cryptocurrency exchange is set to list publicly this coming week. Making it the first cryptocurrency company to be listed on the Nasdaq.
The first cryptocurrency company to list publicly
The listing of a cryptocurrency company on the stock exchange is likely to see a volatile week ahead. Chief financial officer for Validus Power Corporation Greg Foss, sees it as an opportunity for investors to further diversify their portfolios. “For a crypto investor that also buys stocks, it has the ability to diversify risks as there is a very profitable exchange platform that trades on another venue (stock exchange) whose flows of buyers and sellers can be less correlated than many crypto prices” he said.
Coinbase will be publicly listed this week without raising any further capital. The company is currently valued at $90 billion according to the last week of private trading on the Nasdaq.
The ability to list on the stock exchange and be traded publicly will likely see an increase in interest as investors diversify their holdings. Gil Luria of D.A. Davidson & Co. sees the listing as a win for Coinbase. Stating “Coinbase will win regardless of which crypto asset emerges as a winner, and their revenue is tied more to trading volumes, which are often less volatile than asset values”.
Coinbase stock a safer investment bet
The listing will be seen as a less volatile way of entering the cryptocurrency markets, which experience extreme volatility. However, as the first cryptocurrency company to list publicly. Volatility during the first week is very likely to occur.
Global head of macro strategy at research firm Delphi Digital, Kevin Kelly believes that volatility during the first week of launch will be similar to that of the cryptocurrency markets. Kelly said “I expect to see a lot of volatility next week once Coin begins trading, but eventually I think we’ll see it trade more in line with the direction of the broader crypto market”.
Kelly sees the public listing as a lower risk play in the market compared to investing directly into cryptocurrency assets.
While experts weigh in on the upcoming IPO, all eyes will be on the performance of the company’s stock. As it breaks new barriers for the cryptocurrency market.