At press time, CBSE, a pre-IPO Coinbase contract on FTX, was trading at $594, valuing Coinbase at over $140 billion.
The FTX Exchange is a regulated cryptocurrency exchange that specializes in leveraged assets and derivatives. FTX, was created in 2018 by former Jane Street Capital international ETF trader Sam Bankman-Fried. It offers derivatives, options, volatility products, and leveraged tokens.
Coinbase’s market capitalization divides by 250,000,000 tracks by FTX’s CBSE. After the first trading day, CBSE balances will convert into Coinbase Fractional Stock tokens.
Stock tokens are a novel investment vehicle that allows market players to trade fractions of a company’s shares.
Apple Inc. and Amazon.com Inc. stock tokens are accessible on FTX, while Binance, a large cryptocurrency exchange, recently offered tokenized versions of Tesla Inc.
According to FTX’s website, Coinbase will have 255 million total shares on the first public trading ending day on April 13.
Coinbase Listing
If Coinbase lists as a public business then would be one of the most valuable direct listings ever.
The event would be a watershed moment for the whole crypto industry. As it would be the first time a cryptocurrency exchange has gone public.
The Coinbase listing, according to Alex Mashinsky, CEO/Co-Founder of Celsius, is another confirmation of the space and a tremendous PR opportunity for the entire industry to shine like the future of finance.
He added that Coinbase has more users and income than many of the greatest Wall Street firms. And it is more profitable than any major exchange. This validation forces most naysayers to reconsider their denial and dissatisfaction with the disruption coming from all sides.
Another industry proponent, Brad Kam, Co-Founder of Unstoppable Domains, commented on the implications of the imminent listing.
He thinks Coinbase’s direct Nasdaq listing is a big step towards legitimizing and publicizing the digital asset market. Coinbase’s growth to 56 million users and $1.8 billion in revenue demonstrates that consumer adoption is real. Furthermore, all they need now are tools that make crypto simple and straightforward.
Some market proponents argued long-term prospects for Coinbase should handle with care, despite the company’s record valuation estimates.
Thus, Crypto transactions drive Coinbase’s revenue, according to Collin Plume, CEO of Noble Gold Investments. He said that Coinbase’s revenue is heavily based on crypto transactions, just like Google and Facebook’s. Unlike Google and Facebook, there is no indication that Coinbase will diversify soon.
