Bitcoin falls after Coinbase listing on Nasdaq


Bitcoin fell on Wednesday after it set a new all-time high of about $ 64.8 thousand at the beginning of the day. The sharp decline occurred after the procedure for listing shares of the Coinbase crypto exchange on Nasdaq began. The first cryptocurrency lost more than $ 3 thousand at the moment, dropping below $ 61.5 thousand on Wednesday evening.

Coinbase cryptocurrency exchange (COIN) shares officially began trading on the Nasdaq trading platform with a starting price of $ 380 and quickly climbed to a high of $ 429.45.

However, then there was a decline and trading closed at $ 328.28 (-13.9% from the opening). The minimum price during the first trading session was $ 310. Capitalization slipped to $ 85.7 billion, writes forklog.

Coinbase entered the stock market through a direct listing, thus abandoning the option to raise additional capital through an initial public offering (IPO).

While shares of other companies associated with the cryptocurrency space were already available for trading in the stock market in the past, Coinbase’s listing has attracted the most investor and media attention in its category.

Rumors of Coinbase’s likely plans to go public had been circulating for at least a few months before.

“This is a Netscape-level moment for the cryptocurrency economy,” Galaxy Digital CEO Mike Novogratz said, referring to the IT company’s successful debut in 1995.

Coinbase previously gave away 100 shares to each of its 1,700 employees. In accordance with the reference price of the asset of $ 250, each of the employees of the trading floor received securities for $ 25 thousand.

Coinbase was founded in 2012. There are about 50 cryptocurrencies on the exchange. The platform has 56 million users. In April, the company reported preliminary results for the first quarter of 2021: revenue grew nine times year-on-year – to $ 1.8 billion, net profit increased to $ 730-800 million from $ 32 million a year earlier.

“Direct listing of a cryptocurrency exchange is a new step in the integration of crypto with traditional finance. The dynamics of the shares after the placement can seriously positively affect the image component of the entire industry as a whole.

Nevertheless, one should also not forget about another option, when a serious disappointment in the results of the placement could negatively affect the sentiment of market participants, ”warns the team of analysts at FxPro.

  • What is cryptocurrency? Everything a beginner needs to know about coins in one book. Read for free

Market forecasts, analytics and stock news

Libertex [CPS] WW

xemarketsforex

xemarketsforex

MTP Procurement Management Procurement Bidding SRM Cost Optimization Team Management Cost Management SAP ERP Management Skills SAP ERP 1C Supply Control SAP / SRM SAP / R3 Analytical Thinking Working with Suppliers Result Oriented System Thinking Process Management Strategic Planning Project Management MsOffice Negotiations with company top officials Organization of procurement procedures Oil trading

Read Previous

Gold price forecast, GBPUSD and USDCHF rates for today

Read Next

Industrial production in RF increased by 1.1% in March