Coinbase IPO: 100 billion out of the box

The IPO of the largest trading platform for cryptocurrencies in the USA, Coinbase, has further stimulated investors’ appetite for Bitcoin & Co. Shortly before the crypto platform debuted on the Nasdaq, Bitcoin hit a fresh record high. More information you can get at this link.

The world’s best-known and largest cyber-currency increased in price by up to 2.7 percent to a record value of 64,899 dollars. Ethereum, the second most crucial cryptocurrency, also hit a new all-time high at $2,400. Experts believe that the Coinbase IPO will give cyber currencies broader adoption. In addition, the courses for the money created by computers have been rising for months. A year ago, the bitcoin cost was meager.

Meanwhile, Coinbase’s trading launch is causing a sensation on Wall Street. Nasdaq set the reference price at $250 per share, giving the platform a total valuation of around $50 billion. But already, at the beginning of trading, they rose to more than 380 dollars; at times, they even reached a price of 424 dollars. As a result, Coinbase has been valued at almost $100 billion. NYSE’s holding company, Intercontinental Exchange, is worth $66 billion. In addition, Coinbase’s goodwill was still valued at eight billion dollars in the last round of financing by private financiers.

Coinbase went public on Wednesday via a direct offering to Nasdaq’s US technology exchange. In this type of IPO, which the music streaming service Spotify also chose, shares are issued without the support of investment banks. In addition, existing titles will be issued.

With the IPO, Bitcoin and Co. finally gained a foothold in the classic stock world, said expert Timo Emden from Emden Research. “Wall Street can no longer ignore Bitcoin and Co. as of today at the latest.” However, investors should remain cautious despite the euphoria, as stricter regulation is increasingly likely given the rapid price increases.

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In addition, electric car pioneer Elon Musk stocked up on Bitcoin for $1.5 billion in February. The Tesla founder also accepts bitcoin for payment.

China suggests worldwide rules for banks’ digital currency.

The Chinese central bank has communicated these proposals to other central banks and monetary authorities. The director of its Institute for digital currencies, Mu Changchun, said this at the Bank for International Settlements (BIS) event on Thursday. Among other things, regulations are planned to use digital central bank money (CBDC). But sensitive issues such as surveillance and information sharing are also addressed.

 Information flows and money should be synchronized to enable supervisors to monitor transactions for compliance. In addition, cryptocurrencies such as Bitcoin are becoming more and more critical. Digital central bank money also offers the opportunity to make domestic and cross-border payment transactions more effective. Last but not least, the central banks are also concerned with not losing sovereignty over currencies to the private sector.

Fair supply to support financial stability

According to Mu, a central global rule should include that there is a “fair offer of digital currencies” from the central banks. Moreover, it should support healthy development. A “digital currency issued by one central bank should not affect the ability of another central bank to fulfill its monetary and financial stability mandate,” Mu said. In China, large-scale trials of a digital yuan have already been launched in several metropolitan areas.

Last year, the island state of Bahamas became the first country to introduce a digital version of its national currency, the “Sand Dollar”. In Europe, the development is not that far. The European Central Bank (ECB) wants to decide whether a project should be started that prepares for the introduction of a digital euro in the middle of the year. However, there are also voices in the currency community that argue favor a cautious approach like the Bundesbank. In contrast, countries like the Netherlands are more adventurous.

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Earlier at the BIS conference, Mu had also commented that CBDC could play an essential role in supporting smartphone payments in China. However, in the meantime, mobile payment using digital services such as WeChat Pay or Alipay has become an integral part of everyday life for many Chinese.

Hype stocks are falling — but a crash is unlikely.

Rise and fall are often close together on the stock market. The electric car manufacturers Rivian and Lucid Motors recently showed this in the USA. Rivian, which mainly builds pick-ups and SUVs with electric drives, went public. Shortly after the highly successful IPO, the company, which had delivered just 156 cars by the end of October, reached almost $130 billion in market value. In the summer, competitor Lucid Motors slipped under a stock market shell and went public on Nasdaq’s US stock exchange. For those interested in exploring the intersection of technology and sustainability, particularly in the context of such financial innovations, a visit to solarblox.co can be enlightening. This website delves into solar energy and green technology, offering perspectives that are increasingly relevant in our technologically advancing and environmentally conscious world.

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