Coinbase, one of the most popular cryptocurrency exchanges, is set to go public on April 14th. This will be the first major U.S.
exchange to do so and is expected to be a landmark event for the crypto industry. But is Coinbase a good investment Let’s take a look.
Coinbase is a digital asset exchange company headquartered in San Francisco, California. It was founded in 2012 by Brian Armstrong and Fred Ehrsam, and has since grown to serve over 30 million customers in over 100 countries.
Coinbase allows users to buy, sell, and store cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and more.
The company has been incredibly successful so far. In 2017, Coinbase generated $1 billion in revenue and was valued at $1.6 billion. In 2018, revenue grew to $520 million, and the company was valued at $8 billion.
And in 2019, Coinbase generated $1.3 billion in revenue and was valued at $12 billion.
Coinbase plans to go public via a direct listing on the NAsdaq stock exchange. This means that existing shareholders will sell their shares to public investors, rather than the company itself selling new shares.
The price of the shares will be determined by supply and demand in the open market.
Based on Coinbase’s current valuation and expected growth, some analysts believe that the shares could be worth anywhere from $60 to $200 each at the time of the listing. That would give the company a market capitalization of anywhere from $30 to $100 billion.
So should you invest in Coinbase when it goes public
There are a few things to consider before making an investment decision. First of all, it’s important to remember that Coinbase is a young company with a lot of potential for growth.
While it has been successful so far, there is no guarantee that this will continue in the future. There are also regulatory risks to consider; for example, if cryptocurrencies are ever outlawed or heavily restricted by governments around the world, Coinbase could be negatively affected.
That being said, if you’re bullish on cryptocurrencies in general and believe that they have a bright future ahead, then investing in Coinbase could be a good way to profit from this trend. The company is well-positioned to capitalize on the growth of the crypto industry, and its shares could rise significantly in value over time as more and more people adopt cryptocurrencies as an investment vehicle or use them for everyday transactions.