{"id":227032,"date":"2021-04-15T00:48:00","date_gmt":"2021-04-14T21:48:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/coinbase-is-most-valuable-u-s-exchange-after-first-day-of-trading\/"},"modified":"2021-04-15T00:48:00","modified_gmt":"2021-04-14T21:48:00","slug":"coinbase-is-most-valuable-u-s-exchange-after-first-day-of-trading","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/coinbase-is-most-valuable-u-s-exchange-after-first-day-of-trading\/","title":{"rendered":"#\n  Coinbase is most valuable U.S. exchange after first day of trading"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3f9b1866b52\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3f9b1866b52\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/coinbase-is-most-valuable-u-s-exchange-after-first-day-of-trading\/#Despite_falling_from_opening_price_Coinbase_ends_first_session_of_public_trading_at_a_diluted_valuation_topping_85_billion\" >Despite falling from opening price, Coinbase ends first session of public trading at a diluted valuation topping $85 billion<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/coinbase-is-most-valuable-u-s-exchange-after-first-day-of-trading\/#Emily_Bary\" >Emily Bary<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Coinbase is most valuable U.S. exchange after first day of trading<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Despite_falling_from_opening_price_Coinbase_ends_first_session_of_public_trading_at_a_diluted_valuation_topping_85_billion\"><\/span>\n  Despite falling from opening price, Coinbase ends first session of public trading at a diluted valuation topping $85 billion<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div class=\"cx--next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000231689\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Coinbase Global Inc. became the most valuable U.S. exchange Wednesday amid strong demand for the cryptocurrency platform\u2019s newly public stock. <\/p>\n<p> Shares of Coinbase<br \/>\n        COIN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/225893452\/composite\" class=\"positive\">+31.31%<\/bg-quote><br \/>\n       began trading at $381 a share at 1:25 p.m. Eastern on Wednesday, after a $250 reference price was established Tuesday afternoon, and pushed as high as $429.54 before ending its first day of trading at $328.28. Coinbase held a direct listing instead of a standard initial public offering, meaning that the company didn\u2019t raise money through the process of going public and doesn\u2019t have a traditional IPO price against which to measure the stock\u2019s first-day rally. <\/p>\n<div class=\"paywall\">\n        At the closing price, Coinbase was valued at $85.8 billion on a diluted basis. CME Group Inc.<br \/>\n        CME,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210449693\/composite\" class=\"positive\">+0.44%<\/bg-quote><span>,<\/span><br \/>\n       the next-most-valuable U.S. exchange, has a market capitalization of about $74 billion. <\/p>\n<p><strong>Coinbase IPO: Everything you need to know about the \u2018watershed moment\u2019 in crypto<\/strong><\/p>\n<p>Coinbase\u2019s direct listing comes at the \u201cperfect\u201d time for the platform given booming demand for crypto trading and record-high prices for bitcoin<br \/>\n        BTCUSD,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/31322028\/realtime\" class=\"positive\">+0.65%<\/bg-quote><span>,<\/span><br \/>\n       said Reena Aggarwal, a finance professor at Georgetown University\u2019s McDonough School of Business. She expects the company to draw broad interest including from exchange-traded funds that want exposure to the world of cryptocurrencies but can\u2019t actually own bitcoin.<\/p>\n<p>The company anticipates that it will report first-quarter revenue of about $1.8 billion, more than 800% above what it saw in the year-prior quarter. Coinbase also expects to post net income of $730 million to $800 million, compared with the $32 million it reported a year earlier. The company has 56 million verified users. <\/p>\n<p>While the company is clearly benefiting from surging interest in cryptocurrencies, experts predict that Coinbase\u2019s stock will be volatile given its ties to crypto trading activity and the price of popular crypto assets. <\/p>\n<p><strong>Also see:<\/strong> Coinbase has fueled \u2018a lot of frenzy\u2019 and \u2018that never ends well,\u2019 bitcoin bull Novogratz tells MarketWatch<\/p>\n<p>\u201cTo be prudent, we are assuming that the value of cryptocurrencies will continue to be cyclical, so we are assuming Coinbase\u2019s 2022 revenues will be &gt;35%\u00a0<em>lower\u00a0<\/em>than 2021,\u201d MoffettNathanson analyst wrote in a note to clients Tuesday. She argued that \u201cit is quite likely that we are currently nearing a peak,\u201d with Coinbase\u2019s expected first-quarter revenue alone standing 40% higher than what the company posted for the entirety of 2020. <\/p>\n<p>Still, Ellis opted to rate the stock a buy with a $600 price target, calling the stock an \u201cextraordinarily rare asset\u201d that was admittedly \u201cnot for the faint of heart\u201d but rather for investors that have a \u201cmultiyear\u201d time horizon for their investment. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p><strong>See also: Five things to know about Coinbase as it goes public<\/strong><\/p>\n<p>Coinbase generates the bulk of its revenue from trading in its crypto wallet, and another question concerns the sustainability of the company\u2019s fee structure. The company\u2019s fees are \u201can order of magnitude higher\u201d than what U.S. stock exchanges and brokerages can charge, according to Bernstein analyst Harshita Rawat, who expects some pressure on this part of the business. <\/p>\n<p>\u201cCurrently, companies such as Coinbase (and smaller peers such as Gemini) are able to charge higher fees (vs. peers) for products geared towards newer\/less advanced users to crypto\u00a0\u2013\u00a0as they differentiate themselves on ease-of-use for new users,\u201d Rawat wrote, while predicting that it may ultimately be difficult for the company to maintain its current fee levels amid a competitive market for crypto trading. <\/p>\n<p>Aggarwal echoed some of these concerns as she expects the company to face competition from \u201cfrom crypto exchanges and also the traditional exchanges,\u201d though she thinks that Coinbase \u201cwill continue to have a competitive advantage\u201d as there\u2019s room for fees to come down without dramatically crashing. <\/p>\n<p><strong>For more: Coinbase IPO is a huge score for the crypto platform\u2019s\u201dWho\u2019s Who\u201d list of private-equity investors<\/strong><\/p>\n<p>She also highlighted a smaller part of Coinbase\u2019s business\u2014its role as a custodian that holds crypto assets for companies\u2014as an intriguing part of the company\u2019s strategy and one that differentiates Coinbase from traditional exchanges that don\u2019t typically serve this function.  <\/p>\n<p>\u201cEven though the trading side might be volatile, the custodian aspect will be stable,\u201d Aggarwal said, noting that the custody business ties companies to Coinbase for potential future trading activity. More companies could become comfortable using this service now that Coinbase is public, she added.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Emily Bary\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Emily_Bary\"><\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/marketwatch.com\/author\/emily-bary?mod=MW_author_byline\">Emily Bary<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D38909972200%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Coinbase is most valuable U.S. exchange after first day of trading &#8221; Despite falling from opening price, Coinbase ends first session of public trading at a diluted valuation topping $85 billion Coinbase Global Inc. became the most valuable U.S. exchange Wednesday amid strong demand for the cryptocurrency platform\u2019s newly public stock. Shares of Coinbase&#8230;<\/p>\n","protected":false},"author":1,"featured_media":227033,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-227032","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/227032","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=227032"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/227032\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/227033"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=227032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=227032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=227032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}