Coinbase could be the largest IPO ever, reaching $74 billion in pre-IPO trading
This is an increase of $66 billion since their last private funding round in 2018 which valued them at $8 billion dollars. The largest IPO in the US was DoorDash in 2020, valued at $38 billion.
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The CBSE contracts trading on FTX reached a price of $296 in early trading on Monday. The contracts will settle the day after the Coinbase IPO launches and each contract will convert into the equivalent amount of tokenized Coinbase stock on FTX.
It’s not immediately clear why Coinbase decided to go public. The stock could start trading as soon as early 2021, nearly ten years after they first opened their doors.
Coinbase going public will help bring more mainstream adoption to the cryptocurrency industry, as institutions will feel more comfortable buying equity in a company like Coinbase instead of buying pure crypto. The market price of Coinbase’s stock will likely be closely tied to the market price of cryptocurrency.
The money that Coinbase raises from going public could go towards marketing and improving their services as an exchange. This could include advertisements, user experience improvements, server upgrades, support upgrades, compliance, security upgrades, lobbying, and other business expenses.
The fact that Coinbase could be the largest IPO ever will bring a lot of new interest into the cryptocurrency industry. It will be almost double the size of the DoorDash offering, which is the current leader for largest IPO in the US. DoorDash increased by 80% in the days after it’s initial offering.
Coinbase is the largest US cryptocurrency exchange and boasts over 30 million users. They hold over $20 billion in assets and have facilitated the trading of over $50 billion in crypto on their platform.
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