Coinbase set to be listed on NASDAQ and Binance today.
In a move that many call a landmark moment, crypto exchange Coinbase is listing its COIN today on the NASDAQ stock market. Binance is also listing its tokenized stock (COIN).
Major Updates
- Coinbase lists on the NASDAQ stock market.
- It's listing through direct listing instead of an IPO
- Binance also launches a tokenized version of the stock.
- Both are registered under the ticker COIN.
Coinbase is set to go live on the stock market today. The large cryptocurrency exchange is bypassing the usual IPO listing method, which involves investment banks, costly and often means that retail investors can’t take part at first. This is because the investment banks large amounts buy pre-listing, sometimes at lower prices.
But the reference price at which the stock is set is not a true reflection of the company's market valuation. This is because the exchange is going public with a direct listing rather than an IPO. It means a $65 billion valuation, which is lower than other figures of $68 billion to $120 billion.
COIN has not had recent sustained trading in a private placement market, according to the Nasdaq announcement. The reference price takes into account past transactions but was created by deliberation with Coinbase's financial advisors. It was created because COIN has not had current prolonged trading in a private placement market.
Worth up to $100 billion, the digital currency exchange could be more valuable than existing trading platform providers such as the parent company of the New York Stock Exchange and Nasdaq.
This follows as bitcoin and other digital currencies have soared in value since last year as investors sought to expand their investments in anticipation of a rise in inflation. Bitcoin reached a new all-time high of over $64,000 on Wednesday, and its value seems to have more than soared year-to-date.
Coinbase rewarded all 1,700 full-time employees with 100 shares, valued $25,000 at the present reference price, in the run-up to the Nasdaq listing. The “thank you” gift on March 25 is a no-strings-attached donation, which means they could auction it whenever they want to. Coinbase has somewhat of a reputation for crypto prices to go up after being listed on it.
Binance also announced that today, the 14th April, the tokenized Coinbase Stock (COIN) will become available on the crypto-currency exchange. The token is accessible via the COIN/BUSD pair which, according to the official announcement, allows users to exchange a percentage of the shares in the Coinbase stock.
The exchange's decision came just a few days after the Binance team announced that they would begin tradable Zero-Commission stock tokens. Coinbase Stock Token (COIN) is the second offering after Tesla (TSLA) was published on Binance on the 12th of this month. The TSLA/BUSD pair now offers a fraction of the EV market.
Conclusion
This is good news not just for the crypto community at large but for even non crypto holders. For quick to hold us this day alone moments in history because it represents the merging of the traditional and the financial stock market.
Crypto holders that have always wanted to trade stocks can now partake. While stock traders and holders that don't want to miss out on the crypto goldine can grab this opportunity to trade the newly listed stock.
Question of the day
What do you think of Coinbase's Listings? Let us know in the comments.
