Coinbase listing: Largest US cryptocurrency exchange debuts on Wall Street

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Coinbase Global Inc, a US-based cryptocurrency exchange, has made its debut on Nasdaq under the ticker symbol ‘Coin’ with a valuation of almost $100 billion. It is the first cryptocurrency exchange to get listed on the exchange marking the growing popularity of cryptocurrencies across the world. The company was founded by Brian Armstrong in 2012.

Coinbase’s stock opened at $381 per share, up 52.4% from a reference price of $250 per share. As stated on its website, the cryptocurrency exchange has approximately 56 million verified users, 7,000 institutions, and 115,000 ecosystem partners in over 100 countries. Its quarterly traded volume is at $335 billion with assets worth $223 billion on its platform.

The company got listed through the Direct Listing route, where companies can list their shares directly without the need of raising capital through an Initial Public Offer (IPO). Through a direct listing route, the company can start trading on the exchange.

Sumit Gupta, Co-founder & CEO, CoinDCX, said “Coinbase’s listing on Nasdaq is the first of its kind and will mark a historic moment for the industry. It is a big step as it formalizes the process which essentially helps crypto enter the mainstream market. Any breakthrough and adaptive step towards mainstream will have a cascading effect with other players and countries adopting a similar trend. While investment is a personal choice, Indian exchanges like ours have created products keeping in mind the Indian investor sentiment, safety, and regulatory processes of the land. Bringing this technology to the mainstream is a welcome sign as this will encourage many crypto enthusiasts both within the country and abroad.”

Cryptocurrency exchanges have been under the radar of the government, as time and again the Reserve Bank of India has expressed its concerns around virtual currencies. Following the ban lifted by the Supreme Court in March 2020, cryptocurrency trading has multiplied many times in the country. According to estimates, there are currently 10 million crypto investors in India with an estimated value of Rs 1000 crore.

“More importantly, at this juncture, Coinbase’s listing on Nasdaq will help gauge the valuable attention of the government, central bank, other agencies. Hence we have been engaging with the government along with other stakeholders hoping to develop a more conducive and better-regulated crypto market within India. Globally too investment firms, banks, and governments are all warming up to it.”