It seems like 2021 might bring some Wall Street legends to light. Coinbase founders, who met online on Reddit, shared an apartment in New York when Bitcoin was still only valued at $6 a coin, last week launched on the Nasdaq “Coinbase”, their cryptocurrency marketplace valued at $85 billion.
The company has been having historical moments both on the markets and in the press. Within a week, it appears that there have been more than 30,000 transactions on cryptocurrency.
The success was so big that the New York Times qualified the phenomenon as a “Cryptocurrency coming-out” party.
A launch unlike any other
Coinbase marked a historical launch on the Nasdaq last week starting off at $381 a share; the company saw an important volume of transactions. and after only a few minutes, the share price reached approximately $429 through the ticker symbol COIN.
In anticipation, Bitcoin reached an all-time high at $64,000. It was also one of the most anticipated launches on Wall Street for the start of 2021.
“Unlike a traditional initial public offering – no shares are sold ahead of the opening.”, described Yahoo Finance.
We were far from conventional. For our first hire, we selected a whip smart fanatical lumberjack over a Google manager.
— Fred Ehrsam (@FEhrsam) April 14, 2021
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With Coinbase, Crypto Becomes Mainstream
For many experts, Coinbase is the symbol of something else: cryptocurrencies are becoming mainstream.
First of all, many industries have announced they will accept payments in Bitcoin – from Tesla to Starbucks, including Paypal who has launched a crypto-wallet feature.
However, cryptos are still under high vigilance since they are subject to high volatility.
“Coinbase could make money in other ways, but options will be limited if cryptocurrency mostly remains a vehicle for gamblers and speculators.”, noted Motley Fool.
30,000 transactions in a week
Within a week, Coinbase made the biggest headlines in the world while the high number of transactions encouraged investors.
“About 22,000 Coinbase contracts traded by late afternoon, with puts outnumbering calls slightly, and volume should hit 31,000 by the end of the day, data from Trade Alert showed.” according to Yahoo Finance.
However, several analysts expressed their doubts. Bitcoin has been down around 20% as of Sunday afternoon at $51,907, showing its high volatility and showing cryptocurrencies can fluctuate significantly.
The above content is considered to be market commentary information and shall not be perceived as independent investment research or investment advice.