What To Know About Coinbase, The Cryptocurrency Exchange That Just Reached Nasdaq

Cryptocurrency reached Nasdaq yesterday, with popular exchange platform Coinbase debuting their official IPO. It allows users to buy and sell essential cryptos, namely Bitcoin, with a security guarantee that is difficult to find elsewhere. 

Bitcoin and crypto’s most enormous problem has historically been the difficulty that it would take to complete transactions, making Coinbase’s services extremely important. 

Coinbase’s IPO was highly anticipated, and shares closed Wednesday at $328.28 after reaching highs of $429. 

Many buyers see Coinbase as a safer alternative to investing directly into cryptocurrency, causing such a large share price for a company with no P/E ratio. 

Coinbase profits not off any specific crypto but from the transactions made on their platform. For every piece of cryptocurrency that is bought or sold, they charge a sellers fee, allowing them to take a certain percentage of each sale on their site. Because of this, the platform relies not on the sole success of Bitcoin or Ethereum but on the idea of cryptocurrency continuing to exist. 

As long as there is a digital currency that people want to buy, Coinbase will profit. This safety net makes them allegedly a safer investment than the currencies themselves.

Coinbase’s price has been highly volatile thus far, with large percentage fluctuations. The stock dropped substantially since its peak during yesterday’s trading hours, which may lead to stagnation if the drop represents a market price regulation. 

Even so, Wednesday’s closing price was significantly higher than Coinbase’s initial reference price of $250, so many consider their official IPO launch to be a substantial success. 

As of late March/early April, an estimated 56 million users were on Coinbase, with 6.1 million making monthly transactions. The share prices can be monitored through ticker $COIN.