Key Takeaways
- Cryptocurrency exchange Coinbase Global Inc became the first crypto startup to list on Nasdaq.
- Crypto exchange startup Coinbase made its debut Wednesday on the Nasdaq under the ticker symbol “COIN”.
- Coinbase closed at $328.28 per share in Nasdaq debut, valuing crypto exchange at $85.8 billion.
- Coinbase’s market cap exceeded $100 billion after its debut Wednesday morning on the Nasdaq, though the stock fell later in the day.
- Nasdaq provided a reference price late Tuesday of $250, but because it’s a direct listing no shares changed hands at that price.
On Wednesday, Cryptocurrency exchange Coinbase Global Inc became the first crypto startup to list on Nasdaq. With the Coinbase listing, cryptocurrencies and digital assets certainly took a huge stride toward mainstream acceptance.
Coinbase closed at US$328.28 per share in Nasdaq debut, valuing crypto exchange at US$85.8 billion. Check current price here.
A Watershed Moment For Crypto Economy
Not so long ago, cryptocurrencies and Bitcoin in general were ridiculed by many big names in the financial world, including like of Warren Buffett, as worthless nothing more than a Ponzy scheme; a folly for aspiring anarchists and investors with an outsized appetite for risk. Governments across the globe were, in fact are still, more concerned about illicit use of cryptos rather than the technology.
Well today, crypto doubters and sceptics received a huge blow, when cryptocurrency exchange Coinbase Global Inc became the first major crypto-centred startup to start trading on Nasdaq.
Coinbase’s debut on the Nasdaq is a watershed moment for crypto economy – a rapidly evolving ecosystem that includes cryptocurrencies, and other digital assets such as NFTs. It also encompasses a broad range of companies working to decentralize finance and disrupt every other industries on the planet with blockchain technology.
Why Coinbase Nasdaq Debut matters?
Coinbase is one of the largest digital assets exchanges in the industry. There is a reason why such significance is being placed by analysts and market players alike on the decision of the Coinbase management team.
The term “Coinbase effect”, which signifies significant price boosts for assets immediately after their listing therein. This may well convert not only onto the exchange’s own shares, but on the cryptocurrency or the digital asset market as a whole.
This will help blockchain companies, in particular companies dealing with cryptos, to gain more exposure, acceptability, and easy access to capital. This will also send a strong signal to governments around the globe who are still not sure on how to approach cryptos, and exchanges involved in it.
There are countries which are early adopters in terms of regulating such exchanges and putting favourable environments for them. For example, small island country Malta is now the most favourable destination for crypto startups due to its favourable and detailed legislation. Malta is the first and only country to introduce an organized framework for cryptocurrency used to help combat money laundering and financial crime through its MFSA (Malta Financial Services Authority).
But, there are countries such as India which is still confused how to approach cryptos and blockchain. In fact, it earlier took steps which forced many crypto startups to shut and move their operations to other countries. The Coinbase listing on Nasdaq will give them a clear message that cryptos are part of the blockchain ecosystem and they need to design and introduce frameworks for cryptos in their existing financial system.
Read Also: Coinbase Building New Blockchain Tech Hub In India