Today is the big day. Coinbase will finally hit the Nasdaq Exchange, and crypto-hungry investors can celebrate the milestone for digital currencies. So with all of this hype in mind, what do you need to know about the Coinbase IPO now? And what makes COIN stock stand out?
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To start, investors should know that there is a lot of excitement behind Coinbase for good reason. The company hosts the largest crypto exchange in the United States. Beyond that, experts have highlighted how significant a listing on Coinbase is for an individual token. That is why, ahead of the Coinbase IPO, several altcoins have perked up.
There is no denying today that the debut is a big deal. Here is what you need to know about the Coinbase IPO and COIN stock now:
- Coinbase will start trading on the Nasdaq Exchange today under the ticker symbol COIN.
- Investors should know that Coinbase has chosen to come public through a direct listing.
- This means that the company will not raise cash through its debut today.
- It also means that there is not a pre-established IPO price from investment bankers.
- Some investors may see this as making the Coinbase IPO more in line with the values of crypto bulls, in that it is more transparent.
- However, we do know that Nasdaq gave COIN stock a listing price of $250 yesterday.
- This gives Coinbase a valuation of $65 billion.
- Analysts do not all agree though. Other estimates call for Coinbase to debut with a valuation as high as $230 billion.
- Some on Wall Street are already incredibly bullish, setting price targets of $400 and $600.
- Importantly, Coinbase is the second-largest crypto exchange overall, and the largest in the U.S.
- It comes in just below Binance, which has seen its Binance Coin (CCC:BNB-USD) gain this week.
The Coinbase IPO and COIN Stock
So what else do you need to know about the Coinbase IPO and COIN stock?
In essence, it is a milestone for cryptocurrencies, and we have seen that so far this week. Buoyed by the upcoming initial public offering, several coins have hit their all-time highs. Bitcoin (CCC:BTC-USD) came in above $63,000 for the first time ever. Dogecoin (CCC:DOGE-USD) touched highs above 13 cents. New listings on Coinbase and other exchange tokens have also rallied in sympathy.
That is because many, like Erin Griffith of the New York Times, see today being less about the actual Coinbase IPO and more about what it means for crypto enthusiasts. Griffith calls it a coming-out for cryptocurrencies, or a vindication of the space. Today will help solidify cryptos in the mainstream, following up on other major catalysts from Tesla (NASDAQ:TSLA) and financial institutions.
For investors then, the Coinbase IPO is truly a significant one to watch. It will also likely continue to drive major moves in all sorts of altcoins. Pay close attention.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.