As Coinbase is about to go public this month, its valuation is increasing. In the most recent auction last Thursday, the value of some of the company’s shares rose to $375. This increase in the value was responsible for taking the value of Coinbase to $100B before their Nasdaq listing.
Coinbase is the largest cryptocurrency exchange platform in the United States. Until January 28, 2021, Coinbase was a private company. On January 28, 2021, they made a formal announcement about going public through Direct Public Offering (DPO).
Surprisingly, Coinbase is avoiding Initial Public Offering (IPO) and will opt for Direct Public Offering (DPO). IPOs are for companies that are fairly new in the market and need support from banks so that they can raise investments from investors.
What Does Coinbase’s Nasdaq Listing Means For People?
Coinbase going public will open doors for people who would want to buy the company’s shares. Coinbase’s decision to go public will allow the general public to buy shares. And we must not underestimate the power of the general public. They were able to disrupt the market when they took the price of Gamestop’s share to an all-time high of $347.51.
What Will Be The Share Price?
There is not a lot that Coinbase can do before the Nasdaq listing. But what they must do is to set the share price. The share price must be carefully set by the cryptocurrency exchange platform. Setting it too high might make it difficult for people from low and mid-income sections to buy the company’s shares.
Coinbase provides quality features to its customers. Similarly, they need to set an appropriate share price, so that they can target the widest audience.
Coinbase will be the first major company to opt for Direct Public Offering (DPO) instead of Initial Public Offering (IPO) on Nasdaq.
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