Last month, we announced that the American platform Coinbase was planning its future IPO! Coinbase, the second-largest crypto-currency exchange, had filed an application with the Securities and Exchange Commission (SEC) in December 2020 for a listing on the stock exchange.
To the surprise of some, the SEC accepted the application! Coinbase will therefore be listed on Nasdaq under the ticker symbol COIN. Nasdaq is the second largest stock market in the United States after the New York Stock Exchange, and specialises in IT and Internet companies.
So, what’s the news since our last article? Well, Coinbase’s IPO will take place this Wednesday 14 April! Its valuation has changed significantly since last time, and it’s now possible to buy Coinbase shares ahead of the IPO. We tell you all about it!
Coinbase and its historic IPO
Coinbase’s IPO has been the talk of the town lately. Some are even describing it as a historic event! Coinbase is a crypto-currency exchange platform founded in 2012 by Brian Armstrong and Fred Ehrsam. The platform is based in San Francisco. It allows users to buy, sell, store and save crypto-currencies. It is the biggest online platform after Binance, but it is the leader on the American market!
However, this enthusiasm for Coinbase’s IPO is not just due to its leadership in its field. Above all, Coinbase is the first crypto company to go public! The SEC’s approval of Coinbase’s IPO has been interpreted as a sign that the traditional markets are opening up to the crypto-sphere, which until now has been regarded with suspicion.
In addition to this historic first, Coinbase’s IPO is also in the spotlight because of the platform’s staggering quarterly sales figures! Coinbase earned more in the first quarter of 2021 than it did in the whole of 2020! The platform has gone from strength to strength since its creation:
16 million in revenue in 2016
927 million in 2017
520 million in 2018
534 million in 2019
1.3 billion in 2020
1.8 billion for the first quarter of 2021
Coinbase’s turnover for 2021 is therefore estimated at 7.2 billion dollars for the time being. Enough to attract investors!
Coinbase share price on the stock market
Speculation is rife as to the price Coinbase shares will fetch on the stock market. Financial giant Bloomberg has revealed that Coinbase shares sold for between $350 and $375 at a private Nasdaq auction.
At the time of our last article, Coinbase was estimated to be worth $90 billion. This sum already seemed extremely high in view of Coinbase’s turnover, which was only around 1.3 billion dollars last year. However, this figure has risen considerably since then, with Coinbase now valued at $116 billion before its IPO! This increase can certainly be attributed to Coinbase’s sales figures for the first quarter of 2021. Despite estimated sales of $7.2 billion for this year, a valuation of $116 billion before Coinbase’s IPO seems somewhat exaggerated.
Nevertheless, we won’t know the price of Coinbase shares until the day it goes public! Traders are therefore keeping a very close eye on Coinbase. From 14 April, it will be possible to buy Coinbase shares on any platform, such as eToro! You can already create your eToro account here!
However, the more impatient can buy Coinbase shares before it officially goes public.
Where can I buy Coinbase shares before it goes public?
Coinbase shares are only available to private investors on Nasdaq until the platform goes public. However, FTX is already offering contracts that track Coinbase’s market capitalisation.
Coinbase pre-IPO contracts, whose ticker symbol is CBSE, are currently trading at $557.50 on FTX, or €468.35. These pre-IPO contracts will be automatically converted into Coinbase shares on completion of the IPO on 14 April. So this is a kind of pre-sale for retail investors.
If, for any reason, the IPO is cancelled and does not take place until 1 June 2022 (which is highly unlikely), CBSE balances will be converted into US$32 each.
Coinbase is not the first company to be available as a pre-IPO on FTX, as the platform had already used this system prior to Airbnb’s IPO in December 2020.
Investing in crypto on Coinbase while waiting for its IPO
Of course, while you wait for Coinbase to go public, you can continue to invest in crypto-currency on its platform in complete security. All you need to do is create a Coinbase account!
Registering with Coinbase
Registering with Coinbase is simple, but relatively time-consuming. For the purposes of this article, a member of our team has registered on Coinbase to share with you all the steps involved. Go to the Coinbase platform and click on “Start” in the top right-hand corner. Then enter your first name, surname, email address and choose a password. Accept to receive e-mails so that you can confirm yours. You will then need to enter your telephone number, which will be verified by a confirmation code sent by text message. Enter the code on the platform to continue the registration process.
Coinbase will then ask you for your country of residence, date of birth, address, professional status, why you want to use this platform and your source of income. On the next page you will be asked to indicate the amount you wish to invest in crypto-currency and your sector of activity.
You will then proceed to the identity verification stage. You will need to provide your passport, identity card or driving licence. Once this verification has been carried out (the time taken may vary, the process only took 5 minutes for us), Coinbase will ask you for your bank card. It will therefore be impossible for you to register without sharing your bank details with the platform.
It’s a long process, but a relatively simple one. You’ll then have access to the services of the world’s second-largest cryptocurrency platform!
Crypto on Coinbase
While Coinbase began its activity by buying and selling Bitcoin, the platform now offers over 3,000 crypto-assets, enough to vary your wallet. You will, of course, find the most popular crypto-currencies: Bitcoin, Bitcoin cash, Litecoin, Ethereum, Ethereum classic, Dogecoin, etc.
Cryptocurrencies can be purchased on Coinbase by SEPA, credit card or bank transfer. The platform charges a commission of 1.49% on standard buy and sell transactions, 3.99% for credit card payments and SEPA transfers cost 15 euro cents.
Don’t worry about your funds, Coinbase is one of the most secure platforms around. It is therefore a benchmark for trading.
So, what do we think of investing on Coinbase?
According to predictions, Coinbase shares are undeniably a low-risk investment for the future. Coinbase’s IPO is one of the most anticipated crypto and economic events of the year. Traders all over the world have their eyes on Coinbase. So you can start buying Coinbase shares now, even before it goes public!
However, some analysts are predicting a fall in crypto-currency prices, and therefore certainly in Coinbase’s price, in the future. The more cautious may therefore want to wait before embarking on this investment. In any case, whether you invest in Coinbase before it goes public or at a later date, we can only advise you to invest in Coinbase.
