What Does a Coinbase Direct Listing Mean for the Crypto Industry?

Coinbase will have a direct listing on the Nasdaq stock exchange on April 14. With valuations ranging from $20 billion to $230 billion, there has been much speculation about how Wall Street views the company. Regardless, a successful listing on Coinbase will bring greater exposure, mainstream interest, and more realistic valuations to the cryptocurrency industry.

When Coinbase begins trading at 9 a.m. ET on Wednesday, April 14, the cryptocurrency world will hit a major milestone: The first cryptocurrency company will successfully go public. As the leading exchange for U.S. traders, Coinbase has cemented itself as the “Robinhood” of the crypto world and has become the exchange of choice for every new investor due to its recognition, security, and product offering. As a result, the company's valuation has been incredibly high, sometimes as high as $230 billion, approaching the $266 billion market capitalization of US telecommunications company AT&T.

Coinlectibles announced the acquisition of Phoenix Waters, a film and television production company: On August 17th, the blockchain company Coinlectibles announced the acquisition of Phoenix Waters, a Hong Kong-UK joint venture film and television production company. This is a TV series with the financial industry as the background, and the main story line focuses on NFT. Coinllectibles is wholly owned by Cosmos Group Holdings, a former television network, multimedia information and distribution company that also deals in over-the-counter stock markets. It will acquire Phoenix Waters for HK$35 million ($4.5 million). (variety) [2021/8/18 22:20:26]

Many investors think Coinbase's market cap is ridiculously high, and they're probably right. More recently, technology companies have entered the market at high valuations, only to drop sharply within weeks of going public. Shares of Uber, for example, fell 8% on their first day of trading. Additionally, Peloton stock fell 11% in its Nasdaq debut. The fact that Coinbase is solely focused on cryptocurrencies only helps support the argument that its valuation (like the entire cryptocurrency market) is driven by unfounded speculation and doesn't reflect the current state of the business.

Coincheck will open the NFT market within this year and list CryptoGames NFT tokens: Coincheck announced that it will cooperate with CryptoGames in the NFT market. CryptoGames provides a blockchain game "CryptoSpells" and plans to sell NFTs that can be used in the game on Coincheck's marketplace. It is reported that Coincheck plans to open the NFT market within 2020. (Cointelegraph Japan Station)[2020/11/25 22:05:21]

On the other hand, some investors believe that Coinbase will become the "Amazon of crypto." They already have the largest market coverage in the US and are continuing to gain ground overseas. Additionally, they provide businesses with a business platform that accepts cryptocurrencies, provide custody services for institutions interested in holding cryptocurrencies, and hold over $200 billion in cryptocurrencies on their platform. This advantage makes them a strong force in the field of cryptocurrency. As the only listed company that directly trades cryptocurrency, their success is closely related to the overall market. As they continue to innovate, their dominance will only increase, and investors will see them as a way to invest in cryptocurrencies through companies that are less risky to Wall Street than Bitcoin itself.

CoinW will list LYG at 11:00 on July 27: According to official news, CoinW will list LYG in the potential area at 11:00 on July 27, and open the LYG/USDT trading pair.

It is reported that LYG is a digital cryptocurrency issued by Lianyou International. Lianyou International is the top game platform provider in the country that uses the blockchain model to redistribute value. It has been focusing on the blockchainization of the game field, empowering the game industry through blockchain technology, and is a subversive in the game field. [2020/7/26]

If Coinbase can live up to its massive valuation expectations, then the entire cryptocurrency market will win as a result. With such a high valuation on this centralized exchange, tokens from other centralized exchanges will proliferate, such as Binance’s BNB, FTX’s FTT, KuCoin’s KCS, etc. They hope to find the next Coinbase. Additionally, this may also help increase the overall cryptocurrency market capitalization, and investors may become more aware of cryptocurrencies as an investment opportunity.

Ripple has failed to apply to Gemini and Coinbase for listing or because XRP is considered a security: According to Bloomberg, Ripple tried to list on Gemini and Coinbase, two of the top cryptocurrency exchanges in the United States, but did not get approval from these two exchanges. allow. Ripple says its future success depends on listing XRP on top exchanges. But there is a major downside to the effort, as U.S. officials have warned unlicensed exchanges not to list cryptocurrencies that could be considered securities. XRP, which is controlled by only one company, has raised suspicions that it may be among the cryptocurrencies considered securities. The current global average price of XRP is $0.5, with a drop of 7.36% in the last 24 hours. [2018/4/5]

On the other hand, if the value of Coinbase drops significantly, it could have lasting effects on other markets. Holders of centralized exchange tokens may worry that these companies are overvalued, and they will sell while they can, which will cause the price to drop significantly. This may even lead some to believe that the entire cryptocurrency market is overvalued and experiencing a price bubble. If Wall Street isn't interested in the first cryptocurrency company, it's easy to assume they aren't interested in Bitcoin either.

No matter what happens to Coinbase’s stock price, there will be positive gains for the crypto industry. First, based on Coinbase, companies and cryptocurrencies will receive more realistic valuations, which will lead to less market volatility. Second, every investor is going to have to pay attention to Coinbase right now. Finally, cryptocurrencies will gain more respect from mainstream investors. When a company that only focuses on the crypto market can command a higher valuation than traditional stock exchanges, people will have to respect the business model.

In the weeks following April 14, the fate of the cryptocurrency market will be in the hands of Coinbase. If all goes according to plan and their listing is a success, it will be cause for celebration for cryptocurrency enthusiasts and heralds many more big names in the cryptocurrency space going public in the future. However, if Coinbase shares drop, the entire market could face significant repercussions. One thing's for sure: This is an extremely important day for every cryptocurrency investor, whether they use Coinbase or not.

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Blockchain