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Should you invest in the $85 Billion Crypto listing?

by , 20 April 2021
Should you invest in the $85 Billion Crypto listing?
Do you remember Mt.Gox?

It was a huge crypto exchange.

It's believed at its peak to have handled around 70% of all bitcoin trading. It was unstoppable.

Until it failed due to theft, insolvency and a collapse of operations that smashed the industry.

But as Mt.Gox failed, another crypto exchange would rise to greatness…

211%, 763%, 35%, 85%, 394%, 19%, 280%, 28% and 69% (which crypto stocks are next…?)
Bitcoin has hogged all the headlines.
But, in the background lesser known alt coins have also been lining switched-on investors’ pockets.
And while many experts predict Bitcoin could reach $100,000, there are several smaller coins set to rise higher than bitcoin.
To find out which 3 crypto are on my watchlist for 2021, click here
The company was only founded in 2012. But it has grown rapidly and entrenched itself as part of the crypto community.
The failure of Mt.Gox was so huge and shook the crypto world that the exchanges that survived and thrived from it had no choice but to succeed.
And that’s exactly what Coinbase was able to do.
In the years since, it’s become one of the world’s biggest financial institutions. Not just big relative to the crypto world. But big relative to some of the world’s largest “traditional” financial institutions.
So big that recently Coinbase decided to take the company to the publicly traded stock market. 
That’s exactly what happened on Wednesday 14 April 2021.
Coinbase started trading on the NASDAQ at $381 a share, a 52% increase over a $250 reference price set by NASDAQ a day earlier.
It’s first trading day was full of volatility. But that’s the nature of crypto.
The stock swung as low as $310 and as high as $429. But ended the day at $328.28, valuing the company at $85.7 billion — more than 10 times its last valuation as a private company!
Unlike many other start-ups that go public, Coinbase is profitable!
Estimated first quarter profits came in between $730 and $800 million. The exchange also broke records for assets under management, revenue, verified users, and active users.
Revenue hit an estimated $1.8 billion, while trading volume surged 276% just from the previous quarter, jumping from $89 billion to $335 billion. Coinbase reported about 56 million verified customers and 6.1 million monthly transacting customers.
Of course, any investors keen to buy Coinbase’s shares must know that their growth and profits are tied to crypto prices – which are volatile by nature.
This can make it harder for investors to get in at a decent price.
What’s more, I think attention it will draw is going to be immense. The FOMO (fear of missing out) that will hit the market will be colossal.
Ultimately, the worst time to look at a listing like Coinbase is as soon as it goes public.
So my view is to hold up before jumping into Coinbase.
Everywhere you look, things are going up…
Silver UP +45%...
Bitcoin UP 670%...
Tech stocks like Tesla…UP 1,155%..
Copper UP 76%…
SA’s top 10 Miners UP over 120% …
And yet, not 6 months ago……the South African economy was the weakest it has ever been in 90 years.
If I’m correct, the rapidly rising markets we’re seeing right now are the start of a much bigger trend.
The listing itself is still good news for crypto!
Coinbase is already the biggest and best-known exchange, and its NASDAQ listing further legitimises cryptocurrencies as an asset class.
The result?
Expect even more money coming into the sector!
This flood of new capital will not only push Bitcoin higher, but smaller alt coins too.
What’s more, it’s also a huge step forward in the “mainstreaming” of the crypto world.
See you next week.
Joshua Benton,
Managing Editor, The South African Investor

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