Coinbase, the top cryptocurrency exchange in the United States will soon be a publicly listed company once its COIN stock launches on the Nasdaq stock exchange on April 14.
Generally, the sentiment around the listing has been overwhelmingly positive from both the crypto and traditional financial markets. With the date fast approaching, analysts have been issuing a variety of perspectives related to how the listing could impact Bitcoin and altcoin prices.
Coinbase rally, crypto top?
As Cointelegraph previously reported, Coinbase is technically not conducting an initial public offering (IPO).
Instead, the exchange is directly listing on the Nasdaq, bypassing the need to work with investment banks which are often costly for businesses.
Despite the lack of involvement of investment banks in the process of listing Coinbase, there is significant hype around COIN.
While speaking CNBC’s Squawk Box on April 12, Jim Cramer said:
“You gotta buy Coinbase when that deal comes, even though it’s a $100 bilion deal, this has become common knowledge that there are many companies that are going to switch. MicroStrategy has always been the leader, so others would want to follow.”
— Squawk Box (@SquawkCNBC) April 12, 2021
There are several reasons why investors in the traditional financial market are optimistic on COIN.
Most notably, the two main factors are: getting exposure to the crypto market without owning cryptocurrencies and the lucrative business model of Coinbase.
According to Ben Lilly, the co-founder of Jarvis Labs:
“Coinbase is the watershed moment in terms of legitimizing some valuations you see in crypto, particularly around DEXs who have a tiny fraction of the amount of employees and opex that a Coinbase or ICE has. Crypto is an asset with incredible volume and diversity, which is poised to grow even more. Coinbase showcases how profitable exposure to this market can be. Also, I expect a wave of MA and VC activity on the heels of this as private investors will be asking their fund managers for exposure to this space.”
John Street Capital, a venture capital and financial researcher, noted that Coinbase is massively profitable with an annual revenue of $1.8 billion.
Atop the compelling financial report and revenue, the user base of Coinbase is much larger than Cash App and Venmo.
In fact, Coinbase has the biggest user base out of all financial institutions in the U.S. with the exception of JPMorgan. The researcher wrote:
“The @coinbase team announced 1Q21 data including revenue of ~$1.8B, adj EBITDA of $1.1B, NI of $730-$800M, trading volume of $335B & assets on the platform of $223B (11.3% of cryptoasset market) with 56M users Run-rate of $7.2B in revenue / $4.4B in EBITDA / $3.0B of NI. The 56M user # is bigger than @CashApp & @Venmo and significantly larger than @RobinhoodApp & @eToro . That’s greater than every bank not named $JPM.”
Although some traders believe crypto could reach a top after the Coinbase listing, the market sentiment building up toward the listing is highly positive.
When asked about the significance of the Coinbase listing, Ben Lilly said:
You always need that bridge. How legacy markets value a company that operates in crypto is that bridge. Now legacy investors can walk across the bridge and realize it’s an untapped ocean of investable assets. They might not invest right away, but their framework for how to value something gets easier.”
Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, also said the Coinbase “IPO” could boost Bitcoin to $70,000. He said:
“Coinbase IPO May Boost #Bitcoin to $70,000, Like #Tesla to $60,000 – The lowest 30-day volatility since October indicates Bitcoin is ripe to exit its cage and bull-market continuation is favored for the next $10,000 move. Similar to Tesla’s equity-wealth allocation to Bitcoin..”
How did Galaxy Digital perform when it listed in Canada’s stock exchange?
Another crypto firm that went public in the past year is billionaire investor Mike Novogratz’s Galaxy Digital.
Since Galaxy Digital listed in Canada’s stock exchange, its stock rose by more than 20-fold
Although the business model and the market capitalization of the two companies at launch are massively different, this shows that there i interest in publicly-listed crypto-focused companies at launch, which would likely reflect on COIN’s value.
More Crypto Gains, Less Carbon Emissions: Platform Plants Trees for Every Trader
By now you’ve probably already heard the scary headlines…
“Bitcoin is killing the polar bears!” – anon
Heads Up: If you aren’t ready to save the world, skip to the end of this article to get yourself access to some awesome trading signals and tools for free.
According to the Cambridge Center for Alternative Finance (CCAF), Bitcoin sucks up around 147 Terawatt Hours per year — 0.68% of global electricity production. In more easy to understand terms that’s around the same power usage as the entire country of Sweden, or Poland.
But is it that simple? No.
The reality is that yes the cryptocurrency industry is eating up a lot of power. But the same can be said for almost anything.
If you don’t enjoy Formula 1 racing, you might be tempted to say that it’s a total waste of time, money and a pointless contributor towards rising sea levels and climate change.
Whether or not Bitcoin is worth the environmental/energy cost is up for debate in much the same way.
Why care? Underwater trading is not fun!
Let’s go ahead and say we agree with scientific consensus that global warming is bringing us towards a period of extreme climate change and rising sea levels. Many island nations and countries with coastline are at risk including the densely populated cities such as London, UK.
If you already lose sleep over trades that are sat underwater for a few hours, it’s probably safe to assume that you aren’t going to have a good time if you need scuba gear to degen long your favourite alts a few years from now!
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And take interstellar voyages to VENUS…
Great gains are awesome, but we wanted to help traders all around the world reduce their carbon footprint without needing compromise on their trading performance.
We’ve decided to team up with One Tree Planted in an effort to stem the Earth’s bleeding.
Here’s the bottom line: For every user on our platform, every month we will be planting one Tree!Check out our blog post to find out how you can improve your trading game, make some great gains and start planting some trees now!
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Source :- Plato
Chinese officials warn about risks associated with crypto trading.
Chinese officials warned the public about the risks associated with trading cryptocurrencies. The authorities pointed out three major considerations which might harm investors – false transactions, security breaches, and illegal and criminal activities involving cryptocurrencies. According to the China Financial Stability Report, investors should be extra vigilant when operating with bitcoin and other cryptocurrencies. Officials from China Securities Journal have called for better regulation and pointed out major risks involving crypto trading.
“Cryptocurrencies lack supervision and legal protection.”
Cryptocurrencies are highly decentralized, which means they lack supervision and legal protection. According to the journal, this is a huge disadvantage and can cause price manipulation and false transactions. Another concern that Chinese officials expressed is that the price of most cryptocurrencies, including bitcoin, can easily become an instrument for speculation and can go through sharp declines.’ The report also noted that the movement of funds on blockchain technology is difficult to be observed. This can create an excellent environment for money laundering. Additionally, illegal and criminal activities can also thrive with these conditions as lawbreakers have the opportunity to make drugs or gun transactions using cryptocurrencies.
“There are no legal crypto trading venues in the country and no regulatory protections.”
The Chinese authorities advised that the crypto community must stay alert to prevent these hazards due to these factors. Furthermore, China Securities Journal reminded that there are no legal crypto trading venues in the country and no regulatory protections.” Once you encounter risks, you can only bear the consequences. In short, speculation in coins is risky, and you need to be cautious when entering the market,” the report noted. However, despite the Chinese government’s stance, the leading cryptocurrency bitcoin is highly popular in China – there’s a high number of miners situated in the large Asian nation.
China Securities Journal Says Cryptocurrency Trading Is Risky and Calls for Strict Supervision
Chinese officials warned the public about the risks associated with trading with digital assets. The authorities pointed out three major considerations which might harm investors – false transactions, security breaches, and illegal and criminal activities involving cryptocurrencies.
Tighter Regulations on Crypto Trading
According to the China Financial Stability Report, investors should be extra vigilant when operating with bitcoin and other crypto assets. Officials from China Securities Journal have called for better regulation and pointed out three major risks that trading with digital assets may carry.
First, digital assets are highly decentralized, which means they lack supervision and legal protection. According to the journal, this is a huge disadvantage and can cause price manipulation and false transactions.
Second, the price of most cryptocurrencies, including bitcoin, can easily become an instrument for speculation and can go through sharp declines.’
Third, the movement of funds on blockchain technology is difficult to be observed. This can create an excellent environment for money laundering. Additionally, illegal and criminal activities can also thrive with these conditions as lawbreakers have the opportunity to make drugs or gun transactions using cryptocurrencies.
The Chinese authorities advised that due to these factors, the crypto community must stay alert to prevent these hazards. Furthermore, China Securities Journal reminded that there are no legal crypto trading venues in the country and no regulatory protections:
”Once you encounter risks, you can only bear the consequences. In short, speculation in coins is risky, and you need to be cautious when entering the market.”
China and BTC
Despite the government’s stance, the primary cryptocurrency is highly popular in China – there’s a high number of miners situated in the large Asian nation.
Recently, the country’s central bank announced that it was looking into bitcoin as an alternative investment. Zhou Xiaochuan, former governor of PBoC, outlined the potential of digital assets and their future implementation. However, he ascertained that whatever the case may be, cryptocurrencies must not be used for illicit activities such as drug or weapon trafficking, gambling, or money laundering:
”We believe that crypto assets should play a major role in the future, either as an investment tool or as an alternative investment. Many countries, including China, are also studying it as an investment tool.”
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