Dubbed ‘Netscape 2.0’, will Coinbase help the crypto market boom like the internet more than 20 years ago?

Tram Ho

“The first phase of the internet”

For crypto fans, Coinbase’s US blockbuster IPO this week is no different from Netscape’s “go public” which pushed the internet into the mainstream financial market about 25 years ago. .

The web browser company’s IPO was a huge hit before Microsoft added Internet Explorer to its best-selling PC software. This is when the market begins to embrace the early-stage advantages of life-changing technology.

 Được mệnh danh là Netscape 2.0, Coinbase sẽ giúp thị trường tiền số bùng nổ như internet cách đây hơn 20 năm? - Ảnh 1.

However, this 1995 listing has caused some fund managers to “scratch their heads”: How will this company be valued? Is this really a game-changing business?

Similar questions are emerging across Wall Street in recent days, after more than 120 million Coinbase shares – worth $ 43 billion, were traded on Wednesday and Thursday. Accordingly, the company’s valuation has reached $ 65 billion, only slightly lower than the Intercontinental Exchange – which owns the NYSE floor.

Coinbase is a company that holds digital assets for 56 million customers and operates the largest crypto exchange in the United States. Their IPO is the latest example of how Bitcoin and other digital assets are entering the mainstream market.

Tom Jessop, president of Fidelity Digital Assets, said the Netscape IPO “was a time when the public was curious about their sector, asking questions like ‘what is the internet’, ‘what is the web ‘. According to him, Coinbase’s new deal is perhaps also significant.

 Được mệnh danh là Netscape 2.0, Coinbase sẽ giúp thị trường tiền số bùng nổ như internet cách đây hơn 20 năm? - Ảnh 2.

The price of Coinbase shares surged during the first session.

Recently, a number of asset managers have submitted plans to operate Bitcoin ETFs with the SEC. Several companies – including Tesla, Square, have bought large amounts of Bitcoin on the balance sheet. This week, hedge fund Breven Howard spent up to 1.5% of the money in the main fund to invest in cryptocurrencies. Goldman Sachs – the consulting firm for Coinbase on the listing, is also re-launching the crypto derivative trading desk, as asset managers are very excited about the market.

Coinbase Difficulties

However, some have argued that cryptocurrencies have yet to gain widespread approval in the payments sector and other core areas of the financial system. Fed Chairman Jerome Powell recently called cryptocurrencies “a vehicle for speculation”. This move shows that the pessimistic stance on cryptocurrencies is still popular among policymakers around the world.

Furthermore, prosecutors and regulators have also expressed outrage, as well as concerns about money laundering activities due to Bitcoin’s high volatility. In addition, the environmental risks associated with Bitcoin mining are also exposed. In 2018, the general manager of the Bank for International Settlements (BIS) Agustín Carstens said that ” digital money is a bubble, a Ponzi scheme and an environmental disaster “.

 Được mệnh danh là Netscape 2.0, Coinbase sẽ giúp thị trường tiền số bùng nổ như internet cách đây hơn 20 năm? - Ảnh 3.

Back to Coinbase. Although Coinbase’s “listing” marks an important moment for the crypto market. However, the company had to pause some ambitious plans. According to the source, the sale of tokens – the digital asset that constitutes a class of Coinbase shares, was canceled after failing to find a broker large enough and licensed to trade.

The IPO helped the company raise at least $ 3.4 billion to shareholders and they quickly sold out at the opening Wednesday. Therefore, this deal does not guarantee stability for this exchange or cryptocurrencies in general. Furthermore, a reversal in Bitcoin price could damage the coin’s outlook, as capital trading booms in January and February have gradually declined.

The open future of the crypto market

Even so, a growing number of companies in this sector are in the process of listing. Bakkt, a digital wallet service backed by Intercontinental Exchange, is being listed through a merger with an SPAC. The CEO of Kraken – a rival of Coinbase, also shared about the “going public” plan, with a valuation of up to 10 to 15 billion USD.

In Q1, Coinbase’s net profit was at least $ 730 million from revenue of around $ 1.8 billion. This suggests that, compared to the fees that established brokers or exchanges can earn from trading volumes much larger than stocks, this would be a lucrative activity.

Stephen Wink, partner of law firm Latham & Watkins, said that for the entire crypto ecosystem, the Coinbase listing “legalized the industry in a new way”. ” People understand that the SEC’s process to become a public company is very rigorous. Therefore, this factor gives reassurance that what they are is on is solid ground,he said.

Share the news now

Source : Genk