When Coinbase went public on April 14th, it was the first major cryptocurrency exchange to do so. The highly anticipated Coinbase IPO was met with great excitement from investors and the crypto community alike.
However, the Coinbase IPO didn’t quite go as planned.
The day started off strong, with Coinbase opening at $381 per share, up from its reference price of $250. This put Coinbase’s valuation at around $100 billion.
But then things took a turn for the worse and by the end of the day, Coinbase was trading at $328 per share, down 16% from its opening price. So what happened?.
There are a few theories as to why the Coinbase IPO didn’t live up to expectations. One theory is that investors were worried about the regulatory environment surrounding cryptocurrencies.
Another theory is that some institutional investors were put off by Coinbase’s high valuation.
Whatever the reason, the fact remains that the Coinbase IPO was a flop. This is bad news for crypto exchanges looking to go public, as it may make it harder for them to raise capital in the future.
It’s also bad news for crypto investors who were hoping to cash in on the hype surrounding Coinbase’s IPO.
So what’s next for Coinbase? Only time will tell. But one thing is for sure: the Coinbase IPO was a big disappointment.