Coinbase on Nasdaq: What the landmark listing means for Indian crypto startups, investors, ecosystem

Spotify, Palantir, Slack, etc. were companies that favoured direct listings in the past. (Image: Reuters)

Coinbase listing on Nasdaq will be a watershed event in the short history of the global crypto ecosystem adding to the gradual yet growing acceptance of cryptocurrencies in mainstream finance. The milestone would also allow crypto bulls to advocate even more affirmatively for digital assets’ proliferation. While the direct listing would be a huge sentiment-driving market signal for the entire digital asset industry, and all existing and potential crypto enthusiasts but the nature of crypto is such that all of it could be very uncertain. The near-to-long term impact on the industry will be interesting to look at as it might influence the future of cryptos. Nonetheless, crypto believers in India too for now are jacked up and hope the event would help bring good luck for the sector in India.

“At this juncture, this will help gauge the valuable attention of the government, central bank, other agencies. Hence, we have been engaging with the government along with other stakeholders hoping to develop a more conducive and better-regulated crypto market within India. Globally too investment firms, banks, and governments are all warming up to it,” Sumit Gupta, Co-founder & CEO, CoinDCX told Financial Express Online.

The value created by Coinbase in the US for both industry and government is humongous, according to Sathvik Vishwanath, Co-Founder & CEO, Unocoin. “This not only creates the asset class an institutional exchange for customers and companies but also generates a great tax income directly from the company and traders who profit from trading cryptos. Our government is equally looking at proving innovative and employment opportunities to provide to citizens. Coinbase success can be seen as an on the ground example,” Vishwanath told Financial Express Online.

Also read: Bitcoin bombshell: Crypto king may pole vault to eye popping $400k mark this year with over 6x growth

Among the most prominent and largest crypto exchanges, Coinbase was launched in 2012 by Brian Armstrong. According to Forbes, Armstrong’s net worth is $6.5 billion. The wealth is likely to swell if the listing is successful. Set to hit Nasdaq on Wednesday under the ticker symbol ‘COIN’ as a direct listing. Spotify, Palantir, Slack, etc. were companies that favoured direct listings in the past. A reference price of $250 per share was reportedly assigned by Nasdaq that would value the company over $65 billion.

“Coinbase listing will open new opportunities for the whole crypto market. A lot of seasonal investors who were avoiding crypto for a long time will reconsider investing in cryptocurrency, not only in bitcoin, but alternative cryptocurrencies like ethereum, polkadot, litecoin, etc.,” Hitesh Malviya, Founder, itsblockchain.com told Financial Express Online.

So, how should investors in India look at investing in it? “Buying any stock on listing would not be a great idea, as we can expect much higher volatility on its debut on Nasdaq. So, if someone is looking to buy Coinbase stock, they should wait for a few days for the stock price to build support levels. Indian can buy this stock from Binance Exchange as well that announced the launch Coinbase stock as a token yesterday. They will launch tokenized stock of Coinbase today,” added Malviya. “Given the regulations for Crypto in India is always on the fence, this is a great opportunity for Indians to safely get crypto industry exposure by buying the Coinbase stock through LRS remittance route,” said Vishwanath. Coinbase, which had over 43 million verified users in 2020, will be setting up its physical office initially in Hyderabad as it prepares to establish its business presence in India.

The suggestions/recommendations around cryptocurrencies in this story are by the respective commentator. Financial Express Online does not bear any responsibility for their advice. Please consult your financial advisor before dealing/investing in cryptocurrencies.