The largest cryptocurrency exchange will list on the Nasdaq today, in a landmark moment for virtual currencies and their attempt to be accepted as mainstream assets.
Coinbase has been priced by the Nasdaq at $250 per share which would give the exchange a market value of around $47bn (£34bn), based on the outstanding shares listed in its prospectus.
That would give Coinbase a valuation higher than even Nasdaq Inc ($25bn).
However few trades are expected to happen at that price. Major direct listings usually debut significantly above their reference price. Roblox shares, for example, opened 42pc higher. Digital Currency Group founder Bary Silbert tweeted on Tuesday that his shares won’t be changing hands for $250. “Try again.” he said.
In a note, Wedbush analyst Daniel Ives described Coinbase as a “foundational piece of the crypto ecosystem” and said: “The Coinbase IPO is potentially a watershed event for the crypto industry and will be something the Street will be laser focused on to gauge investor appetite.”
For more on Coinbase, read about the row within the company that cost a British entrepreneur billions here.
