For those of you that are alive and not living in a cave, you probably know that today is April, 14th and the day where Coinbase is being listed on the NASDAQ.
This is an important even for the entire crypto space as it it one of the biggest crypto company out there.
Coinbase is NOT doing an IPO but a direct listing.
What is a direct listing?
As a reminder; an IPO is an initial public offering (IPO), in which new shares are created, underwritten and sold to the public
Whereas a Direct Listing is a way to be listed but **no new shares are created and only existing, outstanding shares are sold with no underwriters involved. **
Therefore the 2nd option that Coinbase chose limits the total number of shares and I believe could pump the price at least in the short term.
What valuation are we expecting?
Goldman Sachs and Nasdaq have decided Coinbase stock should start trading at $250 per share.
That would mean a total valuation of $66.5 billion, assuming an estimated 266.2 million shares outstanding.
What makes me believe that this is aimed to create a strong momentum for the stock (not to repeat the Facebook catastrophic IPO) is the fact that this figure is 27% lower than what Coinbase last traded at in the private secondary market, back then it was trading at $343.58 per share.
Edit: Well it surely pumped to 425$ and then came back down to a more reasonable price (around c.100bn in Market cap).
Let's see what the next few days hold.
B.Armstrong is giving its employees an early Christmas gift !
- He decided to give 100 shares to every employee
- Only Coinbase's 1700 full-time employees are eligible (sorry part-time worker !)
- This giveaway was a way to say "thank you" according to Coinbase
At 250$ per share this is a nice 25k$ gift for every employee ! And as I believe the stock might pump more !
It feels like a governance Token airdrop if you ask me xD, I hope that they will perform as well as $UNI or other ones
Well this is an important couple of days for Cryptocurrencies as we also have the ETH Berling Hardfork taking place between today and tomorrow.
What a year to be alive right?
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