According to Coinbase CEO Brian Armstrong, the direct listing of his company on the Nasdaq exchange has become a “turning point” for the entire cryptocurrency industry, marking a distinct “shift in legitimacy”.
As recently published in a Bloomberg article, things were certainly not always thus. Armstrong harks back to the times when “banks used to hang up on Coinbase’s calls” when the cryptocurrency sector was considered a no-go area for ultra-conservative traditional finance.
He goes on to say how things have made a complete 180 degree turn, and that now executives from the banks that helped Coinbase’s public listing are now calling him up to ask how they themselves can get into crypto.
“It feels like a shift in legitimacy not just for Coinbase but the whole industry,” Armstrong said. “Crypto has a shot at being a major force in the financial world.”
The Coinbase stock fell around 14% on listing yesterday. However, considering that it was valued at $8 billion in a 2018 funding round, today’s fully diluted valuation of $86 billion is a pretty fair return on investment for the company.
A rising tide floats all boats can certainly be applied to yesterday’s listing, as the entire cryptocurrency sector is surging with the news. It could be said that the sector is in mid bull market, and events such as this are the rocket fuel that add to the upwards momentum.
Not all has been roses in the Coinbase garden as the odd negative has had to be overcome in the blue-chip crypto exchange’s rise to prominence. A certain settlement of $6.5 million with the Commodity Futures Trading Commission over inaccurate transaction data and a former employee involved in “improper trades” will hopefully soon be forgotten.
Many also point to Coinbase’s heavy fees when criticising the company. To be fair, when compared with the competition, fees are definitely very much on the high side. Customers will have to weigh this up against the positives of a solid, secure and beautifully designed app.
Marc Andreessen of Andreessen Horowitz, one of the biggest investors in Coinbase, spoke of the appeal of the crypto giant when he said that it was:
“a company that’s conservative enough to be compliant from a regulatory perspective but also relentlessly innovative.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Title: Crypto enters new world of legitimacy
Sourced From: cryptodaily.co.uk/2021/04/Crypto-enters-new-world-of-legitimacy
Published Date: Thu, 15 Apr 2021 20:40:50 +0000