- Coinbase shares had a peak price of almost $439 on the first day, indicating a 71.8% price gain over its pre-listing price of $250.
- On FTX, a popular crypto-derivatives platform, Coinbase’s pre-IPO prices touched the highs of $640 before crashing down to $240.
- At a current price of around $344, Coinbase has a market cap above $64 billion.
Coinbase, the popular cryptocurrency exchange, made its way to Nasdaq on Wednesday. Surpassing the expectations, Coinbase’s shares had an opening price of $381, which was far above its pre-listing reference price of $250.
At a value of $381, Coinbase’s fully diluted valuation stands at $99.6 billion. Such a response for Coinbase’s stocks proves the immense demand for crypto-focused stocks.
Reference price ≠ Offering Price in Coinbase’s Case
The peak price of Coinbase (COIN) shares was $429.54, which is 71.8% more than its original reference price. As per Market Watch, the latest price of Coinbase stock is shy of $345.
In its report, Nasdaq had pointed out that nobody bought Coinbase shares at a $250 price point, which means that the reference price of Coinbase shares has no impact on its offering prices. Clarifying further, Nasdaq reported:
“The opening public price will be determined based on buy and sell orders in the opening auction on Nasdaq.”
Ups & Downs Were not Surprising!
Both stock traders and crypto enthusiasts were eagerly awaiting the Coinbase stock listing. This pent-up demand led to the volatile prices of Coinbase shares on the first day of trading.
The derivatives market, too, saw their share of volatility with COIN prices touching the highs of $640 and crashing to $240 pretty soon on a leading crypto derivatives platform known as FTX.
A Breakthrough Moment for the Crypto Industry
The immense response that crypto-focused stocks receive is not a new phenomenon, especially in this bull run. With prices of Bitcoin and Ethereum setting new records in 2021, many other crypto-focused stocks like Microstrategy and Riot Blockchain have seen their fair share of explosive growth on the stock market.
February 2021 proved to be the best month ever for Microstrategy as its shares touched $1315, it’s an all-time high. Marathon Digital Holdings Inc., another crypto-focused stock, delivered over 9000% returns in a year. But compared to Coinbase’s stock listing, all other crypto-focused stocks pale in terms of the impact they will have on the future of cryptocurrencies.
Coinbase’s IPO is one of the biggest moments in the crypto industry. For a long time, Coinbase has been the flag-bearer of the crypto world. Its explosive entry to Nasdaq, the iconic stock exchange, will act as a bridge between the crypto world and the traditional financial industry.