Coinbase is the biggest cryptocurrency exchange in the United States, and it has now become a public company. Today it is possible for you to buy the company that provides you the services for buying the bitcoin. You need to know that the company has issued the initial public offering on 14 April 2021. In addition to it, the company has also planned to post all it is shared directly on the Nasdaq stock exchange through the procedure of direct listing, which is a technique that is founded by big platforms such as Spotify and Palantir.
It is the nontraditional choice that makes good sense for the Coinbase company because the company has led to an increase in the craze of cryptocurrency in the last ten years. However, the bitcoin replacing the dollar or developing itself further as a national asset is still not confirmed.
What does the Coinbase platform do?
Well, if you want to buy the bitcoin, then you will have two options for it. The first option you have is to mine the bitcoin, which is done by solving complex mathematical problems, and the second option, which is effortless, is that you can buy it from the bitcoin exchange. The mining of bitcoin is a very expensive procedure requiring a tremendous amount of technology and computers. The other option of buying the bitcoin from the bitcoin exchange is very simple as you just have to open an account on a reputed and reliable bitcoin exchange.
This is the reason that most people choose to buy bitcoin instead of bitcoin investing, and this is the time when Coinbase comes into existence. For most of the cryptocurrency devotees, then Coinbase is the most straightforward online exchange, which allows the retail buyers and the seller to meet, and they could find a price for making the deal. For the users who are more experienced, the Coinbase platform offers an exceptionally advanced cryptocurrency trading platform which consists of all the features and the chars that are required for plumbing into the depts of the digital currency market. You should know that the Coinbase platform also offers a free digital wallet service to its users so that they can secure their digital currency in the safest way possible.
Coinbase is the platform that has made itself successful not only by accomplishing these tasks most efficiently but has also become successful by keeping the personal identity and data of the user completely secure. There were many similar crypt exchanges that emerged and do not exist now because most of them failed in securing the accounts of the users. According to a report of July 2020, the Coinbase exchange stated that it has a family of more than 35 million users, and it includes both the retails users and the institutional firms.
How much is the worth of the Coinbase platform?
First of all, you should know that valuing start-ups can prove to be a very difficult task. This is because the private companies only get to see the valuation of the start-ups when they are accepting the new investment from the outside. You should know that Coinbase’s platform’s last formal valuation was done in the year 2018, and it was the time when it accepted almost 300 million dollars for the new financing purpose.
According to a platform named CrunchBase, the worth of the Coinbase company at that time was 8 billion dollars. by the time when the Coinbase platform releases its fresh financial report after it goes public, the audience will not be able to know that how profitable the business of Coinbase is and how much revenue the company is making every year. However, a report from the Axios company signifies that Coinbase was valued at 100 billion dollars at the time when it traded its shares on the private market.
Exactly how Coinbase is going public?
Some people don’t know that the initial public offering is the method by which the private company makes an entry into the public stock market. With the initial public offering, the company hired the big investment banks in order to help for selling its shares to the public. These bakers are quite expensive, but the thing is that they actually help the private company in setting up the worthwhile IPO price per share. Through the direct listing procedure, the company can eliminate hiring the expensive bankers, and they can just list the stock on the exchange.
The company’s present owners convert their shares to the stock, and then the peel who are interested can buy the shares on the exchange only. You need to know that in the IPO, the company that is turning public issues the new shares in the market for raising the capital. But in the direct listing, the company is not looking to raise the capital, but its users and the employees are selling their prevailing shares to the public.
How will it impact the future of bitcoin?
There are so many cryptocurrencies available in the world, but bitcoin is the one that has gained the most excellent attention from the public. The reason behind the popularity of bitcoin is simple because its value has increased dramatically. Bitcoin has not only become the means of exchange, but it has turned to be an investment asset just like gold. The investors of the bitcoin are rising day by day, and this is all because of the fantastic features of bitcoins which have attracted people from all over the world to invest in them.
People are ready to face the risks that are associated with this digital currency but still, they want to invest in it. This prospect has helped bitcoin increase its value, and even the institutional investors of bitcoin are also rising every passing day. If we see the IPO of the Coinbase platform, then it could easily be guessed that the bitcoin will continue to increase as an asset rather than the actual replacement of the dollar.