April 14, 2021 is set to be a special one for Coinbase, as the crypto exchange goes public. We’ve already covered the company’s valuation in our in-depth Coinbase stock analysis. If you don`t have a Coinbase account yet, you can profit from a $10 Deposit Bonus.
Learn how to trade Coinbase stock, what to look out for, and how market dynamics can affect the share price. The placement of Coinbase shares takes place in a direct listing. This means that no new shares are issued and existing shares, which were previously privately tradable, are listed.
Accordingly, there are no banks accompanying Coinbase in the Initial Public Offering (IPO). Instead, the shares are simply brought to the market and no new ones are issued. Accordingly, Coinbase does not benefit directly from a high share value at the start of trading.
However, for the current shareholders, i.e. the founders, investors and some employees, a high share price represents an increase in wealth. However, for later refinancings where new shares are issued, a high enterprise value is also beneficial for Coinbase.
How much is Coinbase stock worth?
Coinbase stock starts 15:30 in New York Stock Exchange trading. According to NASDAQ, the projected value of Coinbase stock is expected to be $250. This would result in a market capitalization of $49.19 billion.
It is already clear that this value will not correspond to reality. Experts estimate the value of Coinbase at 80 to 140 billion US dollars. Already in the past, the shares traded for 343.58 US dollars in over-the-counter trading, well above the NASDAQ estimate. Even more exciting, however, is the price of the pre-market Coinbase token. On FTX, Coinbase is trading at a price of around €500. This corresponds to a share price of around $595 – which is almost 140% above the NASDAQ pricing.
So if Coinbase takes on this value on the stock market, investors should enjoy high price gains in the short term. Overall, Coinbase could be a promising speculation for short-term oriented investors. Those who now decide to invest in Coinbase or enter into a short-term speculation, however, are now faced with the question of where to buy Coinbase.
According to the Stuttgart Stock Exchange, trading of Coinbase shares is not possible in Germany for the time being. The reason for this is the lack of an LEI number. Only with the assignment of the Legal Entity Identifier (LEI) is trading possible on German trading venues.
However, we took a look at our custodian banks this morning. DKB is listing Coinbase at a price of 210 euros on the Hamburg Stock Exchange. As you can see from the screenshot below, the price was last accessed at 8:53 am. At Consorsbank, on the other hand, there is no correct price. Nevertheless, it was possible to create a limit order. We can really only recommend creating a limit order in this case. Should you place a market order, you could buy at an inflated price.
Unfortunately, it is impossible to determine in advance whether an execution of your Coinbase position will take place. What is certain, however, is that it is possible to place an order. If you still want to invest in Coinbase and do not want to wait several days here, then you can also buy the tokenized share of the company.
Coinbase share at FTX
A tokenized share is a crypto token that tracks the price of the underlying asset. Coinbase tokens have been tradable for a few days now, indicating the direction in which the company’s share price is likely to move.
Matching tokens are available from Binance and FTX . The stock will remain tradable after the IPO and will probably follow the stock price. As an investor, you will benefit from tax exemption if you hold the stock for a longer period of time. If you sell your shares after a short time, then a higher tax is incurred for this.
- There is a positive correlation between the demand for cryptocurrencies and the share price of Coinbase stock. When demand for cryptocurrencies is high, Coinbase simply makes more money.
- When crypto prices fall, so do transactions and therefore Coinbase’s profits. So, if you don’t want to invest in the individual crypto exchange instead, but want to have a value that reflects the overall market, then you can also invest in Bitcoin.
- Bitcoin as the leading cryptocurrency is the epitome of a cryptocurrency for many investors. Accordingly, we expect Coinbase to correlate significantly with Bitcoin as an asset.