Coinbase Global, the largest cryptocurrency trading platform in the US, will be introduced on Nasdaq today, marking a milestone in the evolution of digital currencies from a specialised technology to dominant assets.
The listing is the largest to date for a cryptocurrency company, with the San Francisco-based company announcing last month that based on private transactions, its value is valued at $68 billion this year, compared to $5.8 billion in September.
Coinbase stock is listed at $250 before being available on the Nasdaq Composite Technology Index. The price, of course, is much lower than the $600 valuation in the pre-market.
It is noted that Coinbase enters the money market through the method of direct listing, and not through Initial Public Offering, which means that the capitalisation of $65 billion does not reflect to reality, with estimates ranging between 68 billion and 120 billion dollars.
The Nasdaq statement said the benchmark price, which reflects previous trades but was determined in consultation with Coinbase Financial Advisers, was due to the fact that “Coin has not recently traded continuously in a private placement market”.
The news follows the spectacular rise of Bitcoin that on Thursday for the first time in its history exceeded $60.000, giving a boost to the price of other cryptocurrencies.
This development is a decisive step for the acceptance of cryptocurrencies, an asset that only a few years ago was avoided by financial sector players, according to interviews with investors, analysts and CEOs.
“Introduction is very important in the sense that it marks the development of the industry and its acceptance of mainstream business,” said William Kong, an associate professor of economics at Cornell University’s SC Johnson College of Business.
Bitcoin, the largest cryptocurrency, hit a record high of more than $63.000 yesterday, Tuesday. This year, its value has doubled as large investors, banks from Goldman Sachs to Morgan Stanley and well-known companies such as Tesla Inc. adopt a more positive attitude towards digital currency.
The direct listing of Coinbase on the stock exchange may accelerate this process, said market executives who spoke to Reuters, as it will enhance the recognition of digital assets in the investment community.
Founded in 2012, Coinbase boasts 56 million users worldwide and $223 billion worth of assets on its platform, accounting for 11.3% of the cryptocurrency market, according to data released on competent regulatory authorities.