The San Francisco-based digital currency platform began trading on the NASDAQ under the ticker COIN on April 14.
Coinbase’s listing helps legitimize cryptocurrency in general. Many everyday consumers consider cryptocurrency as a medium of exchange for fraudsters and bad actors on the dark web. This will shift, however, to place digital currencies in a more positive light and consumers will begin to understand the true benefits of crypto– a tool for faster payments, a way to lower fees, and an agent for a more inclusive financial system.
The Coinbase IPO sets a precedent for others in the cryptocurrency industry to go public. Digital currency wallets and crypto marketplaces are closely tied to the price of cryptocurrencies, which have historically been extremely volatile.
Despite the uncertainty, Coinbase has proven to be profitable. According to the New York Times, Coinbase made $730 million to $800 million in net profit on $1.8 billion in revenue in the first quarter of this year. The company’s performance in the public eye will dictate the moves of others in the cryptocurrency industry, including bitcoin exchange Kraken, which is considering a public listing next year.
Will Coinbase’s exposure outside the cryptocurrency space increase the number of people holding digital currencies? Well, we think so.
More exchanges will be listed on the public market in near future, and by doing so, traditional investors will naturally enter the cryptocurrency market.