Coinbase Global Inc., the largest cryptocurrency exchange operating in the North American region, is set to open for direct listing on the stock market today. It has been listed by Nasdaq and is set to debut at $360 per share, an increase from the $250 reference price provided by Nasdaq. Coinbase will receive a Direct Listing with COIN as its official ticker.
The reference price, which was made according to Regulation SHO Rule 201, will not apply to the security until its second day of trading on Nasdaq. With public interest in crypto gaining momentum, global cryptocurrency exchanges like Coinbase are likely to follow suit and introduce their own strategies in the coming quarters.
Nasdaq’s reference price of $250 is a result of market regulation frameworks which determine the price before a stock has experienced sustained trading in a private market. With Coinbase pegged at about $100 billion by valuation, the impact of this direct listing will likely be felt by both crypto and the traditional stock market, and the decentralized finance sector benefiting through a mixed exposure to both.
According to its prospectus filed with the SEC, Coinbase will be offering 114.85 million shares. With Nasdaq and Goldman Sachs pegging the reference price at $250, this results in a current minimum valuation of $66.5 billion. If the Coinbase valuation of $100 billion realizes as projected, it would mean that it will worth more than two of the largest exchanges combined, the New York Stock Exchange (NYSE) and the Nasdaq Stock Market (NASDAQ).
Given this momentum, Binance has also announced that it will be listing the Coinbase Stock Token, opening soon with a COIN/BUSD trading pair. CryptoDaily has covered the launch of Binance’s Stock Token service more extensively in a previous article.
With Bitcoin breaching the $64,000 level and Ethereum reaching up to $2,200 as it begins it Berlin upgrade which is also expected today, April 14th, Coinbase’ debut at Nasdaq has become a watershed moment for the entire crypto and blockchain industry.
UPDATE: Binance has temporarily postponed the listing of Coinbase Stock Token (COIN) due to market volatility. (04-14-21 / 20:15 GMT)
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.