Many market experts recently shared their thoughts on the upcoming Coinbase IPO. The exchange is set to go public next week and is the first cryptocurrency company to be listed on the Nasdaq.
First publicly listed cryptocurrency company
The event of listing a crypto company on a stock exchange is likely to create a volatile week ahead. Chief Financial Officer Greg Foss of Validus Power Corporation sees this as an opportunity for investors to further diversify their portfolio.
“For a crypto investor who also buys stocks, this has the potential to diversify risk because there is a very profitable trading platform on another location (stock exchange). the flow of buyers and sellers may be less correlated with the price of cryptocurrencies.
Coinbase will be publicly listed this week without raising additional capital. The company is currently valued at $ 90 billion by its last privately traded week on the Nasdaq.
The possibility of listing on this stock exchange and being publicly traded will attract more attention as investors diversify their holding assets. D.A.’s Gil Luria Davidson & Co. considering the listing a win for Coinbase, stating:
“Coinbase will win no matter which crypto asset emerges as a winner and their revenue is tied more with transaction volume, often less volatile than asset value.”
Coinbase shares are a safer investment bet
The listing will be considered a less volatile way to enter the cryptocurrency market, which is inherently volatile. However, as the first publicly listed cryptocurrency, first week’s volatility is highly probable.
Head of global macro strategy at Delphi Digital research firm Kevin Kelly believes that first week’s volatility will be similar to the volatility of the cryptocurrency market. Kelly said:
“I expect to see a lot of volatility next week as COIN starts to trade, but eventually I think we’ll see it trade more in line with the trends of the broad crypto market.”
Kelly considers public listing a game with lower risks in the market compared to investing directly in crypto assets.
While experts consider the upcoming IPO, all eyes will be on the company’s stock performance. Because it breaks new barriers to the crypto market.