Coinbase Shares Skyrocket After Successful Nasdaq Debut

Coinbase (a cryptocurrency exchange) shook Wall Street earlier this week when it started trading on the Nasdaq. Coinbase Global shares saw a whopping 71 percent spike following the listing. The company’s listing on the stock market is being regarded as a major breakthrough for the cryptocurrency space. 

This recent development is likely to act as a catalyst for cryptocurrencies, ushering them from the sidelines into the mainstream. 

SEE ALSO: UK-based Fintech Gro Raises $7.1 Million from Northzone VC

Steering crypto into the mainstream

Coinbase’s listing on the stock market is one of the most important events for the blooming cryptocurrency sector. This development has tremendous potential to drive the adoption of cryptocurrencies and turn them into the mainstream.

Coinbase went public in a direct listing on April 14, 2021. Coinbase takes a cut from every Bitcoin transaction made on its platform. The company’s revenue hit the $ 1.28 billion mark in 2020, out of which, nearly 86 percent was collected through those transaction fees.  

According to a survey conducted by CivicScience, around 66 percent of adults in the U.S. are not interested in cryptocurrencies. [1]

According to Brian Armstrong, Chief Executive, Coinbase said that he is hopeful that Coinbase going public will be hailed as a monumental moment within the crypto industry. 

The increasing anticipation for Coinbase’s direct public listing led to a surge in the prices of cryptocurrencies last week.

What are the experts saying?

According to the experts operating within the crypto sector, Coinbase’s success could be short-lived, primarily because it earns revenues via transaction fees. 

This business model would eventually mean lower revenues coming in when the market is ripe with competition. According to a Bank of America survey, more than 74 percent of fund managers are of the opinion that Bitcoin is a bubble. 

While there is a bit of uncertainty, leading companies such as MasterCard and Visa have started experimenting with cryptocurrencies. 

More about Coinbase

Coinbase is the biggest cryptocurrency exchange in the U.S., and it enables consumers to use mainstream currencies to buy and sell different cryptocurrencies which include Ether, Mana, Stellar, Litecoin, and SushiSwap among others. 

Image Source: Coinbase

Source

[1] (2019) Commisso.D “Americans Have Trust Issues with Facebook’s Cryptocurrency” CivicScience [online] Available from:
https://civicscience.com/americans-have-trust-issues-with-facebooks-cryptocurrency/[accessed April 2021]

Karandeep V

Karandeep was born in Pune, Maharashtra, an upcoming metropolitan city in the Western region of India. While most members of his family are engineers, he had different ideas. He was more inclined toward exploring the non-technical aspects of a business, which is why he studied Bachelors of Business Administration at Symbiosis International University, Pune.  Having said that, his love for new and upcoming technologies remained intact, which is why he has written extensively about technology throughout his career. After a brief stint with a gaming company at the beginning of his career, he discovered that his love for writing was not temporary.  Being a tech geek, he always liked installing and playing around with new applications on his mobile devices and the home desktop. He was fascinated by how technology can simplify even the most mundane and complex tasks with just a few commands. He keeps a close eye on how businesses use different tools to streamline their operations to boost productivity and efficiency.  At ToolsMetric, he writes product reviews that cover the main features and specifications of different enterprise applications. The sheer amount of innovation and hard work that goes into building these tech solutions is one of the reasons why Karandeep loves reviewing these tools. Besides product reviews, he also writes interesting news articles and blogs that track the latest developments in the tech industry.  When he is not writing, you can find him rooted to his seat playing video games, watching movies, or supporting his favorite football team. Since his childhood, he has always loved to travel and explore new places. Traveling is a major part of his life due to a myriad of reasons such as experiencing new cultures, food, and traditions. His other hobbies include playing football, cooking, and running.  You can find him on LinkedIn here.

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