Topic: April 14, Coinbase IPO and pump on bitcoin? - page 2. (Read 585 times)

This might be a government or a banker backed hit report to criticize bitcoin as the American stock market was closing. This article has wrong assumptions like proof of work was intentionally designed to be inefficient. It is arguable if intentional from a cost of electricity per transaction basis because it is necessary for security.

However, my favorite assumption is this below hehehehehe.



The world’s second-largest cryptocurrency by market capitalization, Ethererum, has said it is moving toward proof of stake (that switch is likely to take up to another year), and Bitcoin is expected to eventually follow.

Source https://www.nytimes.com/2021/04/14/climate/coinbase-cryptocurrency-energy.html

The first day of Coinbase's COIN has not been easy, in the first hours of the launch it had good receptivity, but many important movements have happened:

Source: https://cointelegraph.com/news/coinbase-s-coin-stock-trading-on-nasdaq-is-off-to-a-rocky-start

There is still a long way to go, it is just the first day and it has not been a bad way, it has already been listed and investors already have an idea of COIN, now, we have to wait this week to see how much it can close, if it is to the downside or upside, everything is to wait, as this panorama can be seen, little by little they will be trading much more.

No need to worry about that. Bitcoin was about to pop up regardless of whether the Coinbase public offering was coming or not. It had been building support in the $50,000s for most of the past two months, it was only a matter of time before it resumed pushing to new ATHs. And $100k is nothing. It'll easily blow past that this year. I mean if by "this rally" you mean in the next few weeks, then yeah of course not, but $100k this summer is likely. Bitcoin over the long term can only go up.

The problem is they just priced it wayyyyy too high. They just wanted the private investors to be able to sell off at a super high price. A $20 billion valuation would have made more sense and given it a chance to do well when it went public.

One minute chart.  It’s the post market rn and I don’t think stock traders are excited about Coinbase or as excited about it being a crypto company...  We could see it bleed for the next few days.

I like the play of words, could you elaborate that is in bold letters . According to you what is the expected valuation the price could rally, since it is a speculations thread you will hear many opinions about their all time high valuation that could be attained in this rally.

The coinbase IPO is the reason for the market to reach new levels but now we are seeing a minor correction and i am not too optimistic about the price reaching hundred thousand during this rally.

Yes I mostly agree. Actually from the initial round of funding of Coinbase in 2012 or 2013 when it got its first valuation at like $12 million or something, those initial investors have made almost exactly the same amount from then until the public open today as if they had just bought Bitcoin then. At actually I think just like in 2019 Coinbase was only valued at like $8 billion, so likely any rich investor who was able to buy Coinbase while it was private likely got about as good an investment up to today as if they had just bought Bitcoin at that time. That's very impressive.

BUT....given Coinbase's revenue/profit numbers a $100 billion valuation is completely absurd. Granted we are in the era now of inflated stock prices that make no sense with the company fundamentals, but still Coinbase's valuation is absurd even given this. So yeah I agree that likely the only way for Coinbase's stock to go in general is down. In fact it has already gone down from a high of $420 a few hours ago to $330 now, but we'll have to see what happens in the next few weeks as obviously right after the initial public offering a stock is in extreme price discovery.

I don't agree that these prices are because Coinbase "makes money on trades of an asset that is in a bubble", because Bitcoin is not in a bubble (though probably plenty of altcoins are). There's a good chance that it won't take too long before we never see Bitcoin as low as $60k again. But Coinbase's stock is highly hyped because we are currently in a major bull market, if they had gone public a year ago their public offering probably would have been priced more appropriately at like $15 billion or something.

And it's not like Coinbase is an empire like Binance. Coinbase is just a very popular exchange, meanwhile Binance is building a crypto empire. I could see a reason for Binance to be valued at $100 billion since they are the largest exchange in the world, the control BNB, and they now have the BSC, but Coinbase at $100 billion is a freakin joke. In a few years when crypto is much larger than it is now, sure a $100 billion valuation makes sense for Coinbase, but today if you're buying Coinbase stock you're buying a much inflated future price rather than paying the current fair price, which as Ognasty says above, makes you the fool. I expect the next few years to see Coinbase try to validate a $100 billion valuation, while Bitcoin climbs into the multiple trillions, meaning if you're trying to choose between Bitcoin and Coinbase stock, Bitcoin is the far better choice.

I dont think Coinbase share price can go down until Bitcoin will grow this cycle. People will simply want to be part of crypto anyway they can be and they will feel like they are by buying Coinbase shares. Once bearmarket start there will be huge correction at Coinbase price.  They planed timing of the IPO well.

now quickly crashing lower.

Coinbase shares opened at $381, giving Coinbase an opening market cap of $99.6 billion. It quickly shot up to $420+ per share, currently right around $400/share.


Based on the actual earnings of the business it should be valued at probably like $20 billion. So basically investors of Coinbase are saying they believe the company will explode as crypto explodes over the long term, and are pricing that in right now.

There is no doubt that owning Coinbase up until now has been a great financial move.  Personally though, I'm worried that their current market position leaves them only one way to go, down...  The question when looking at the financials is if they're going to be able to make back the funds they raise before losing market share.  I personally try to think from the company's side of things when evaluating IPOs and it's clear that the risk being removed here is that of a Bitcoin bubble inflating revenue numbers.

While it's easy to look at Coinbase as a great company and want to own a piece, I remember there's a quote that goes something like this...  There's a fool involved in every trade, if you don't know who the fool is, it is you.  While it's not necessarily a bad thing to be the "fool" in a trade, you should know why you're the fool and accept that.  For those buying COIN, you are the fool.  You are buying a company with a dominant market share that makes money on trades of an asset that is in a bubble.  There are many reasons why one might be ok with this...  Maybe you think the bubble is going to be so big that Coinbase is going to make a fortune the rest of the year and you can escape before the pop.  Maybe you think when the dust clears they will still be an attractive investment.  Maybe you want to diversify your portfolio with crypto assets but only want to purchase companies.  Who knows why...  Just be sure if you're involved in the trade that you know who the fool is, and you have a plan to utilize the trade accordingly. 

Coinbase goes offline at every Bitcoin surge, maybe deliberately. Will it go offline if Bitcoin surges quickly going to $80,000, while their IPO is happening? That would be laughable. Hahaha.

The difference between Coinbase IPO and thousands of ICOs is that Coinbase is actually a legitimate company that has been providing a service that is used by lots of people and has a real revenue and a good future ahead, while ICOs are completely useless tokens created by random people with no future and no plans and no revenue.
Most importantly Coinbase shares are directly linked to Coinbase (the company) and is affected by it while ICO tokens have absolutely no link to the creator. they are subject to market pump and dumps.

Otherwise the concept of ICO and IPO is very similar.

@estenity. Agreed hehe. They might pump this and create the positive news they want before they dump the stock. However, similar to an ICO, who wants to be left holding the stock before it dumps?

Everyone can watch the IPO on tradingview.com.

https://www.tradingview.com/symbols/NASDAQ-COIN/

zerohedge says today that initial investors bought recently pre-IPO at 350 usd per COIN, but will start IPO at only 250, and some are waiting quickly to get 600 usd.

nasdaq games .

It appears that Coinbase IPO news has a good influence on the price of bitcoin and the hype might continue if the stock pumps hehe. However, is COIN a buy on IPO or is this similar to an ICO where certain groups that hold the stock before listing dump on everyone? The groups that hold Coinbase stock are venture capitalists and other investors.

Everyone should read this. An article written by a skeptic before the IPO or just a writer creating a storyline of a skeptic? This makes me also skeptical hehe, however not of the article but of the writer. What is he implying?



The leading U.S. crypto exchange, Coinbase, is on the brink of a direct listing for shares in the company on Nasdaq, opening it up to scrutiny in the public equity market and demonstrating the extraordinary demand for cryptocurrency. Its staggering first-quarter results have all but guaranteed this stock market debut will be one for the history books, with analysts estimating the company’s value in the tens to hundreds of billions of dollars.

But how long can Coinbase thrive as more and more financial activity moves online natively? What happens to the original fiat-to-crypto on-ramp when people stop needing on- and off-ramps because all the money they earn, and all the places they spend it, are on the leaderless record-keeping systems known as blockchains?

Source https://www.coindesk.com/coinbase-ipo-blockbuster-netflix-dex-defi

@Pierre 2. I reckon the next storyline for the continuation of the pump on bitcoin is the approval of an ETF by the SEC in America. This is where the biggest institutional investors and international funds can put trust and invest billions. Canada and Brazil have approved their own ETF for bitcoin, however, America, some countries in Europe and Asia are the homes of the biggest investors.

I would have to say this is a great news for coinbase shareholders or partners or whoever will be profiting from this but I do not see how this would help people in crypto. What are you expecting, coinbase to get all that money and buy bitcoin with it? I do not think that it would be possible for them to do something like that, I believe they will probably just keep that cash, either grow the business bigger or they would simply just take that money to home.

You think every single company that sells its shares uses that to grow bigger? Some of them are just shareholders who are selling right after it is listed on nasdaq because they would prefer the cash. I have to say since bitcoin is growing bigger and bigger and coinbase is the most known crypto exchange in all of USA, I think that would mean coinbase shares will be overpriced at first, get to a good price, then it will definitely go up a lot in the future, could be a good investment.

PSA, this is what the billionaires are doing,



Don’t give the billionaires, the trolls, the scammers, the shitcoiners, the bankers what they most want from you. Your Bitcoin. HODL all the coins you can. Make lifestyle changes to reduce costs.