Ahead of the Coinbase IPO on April 14, 2021, the Asian Investors Network hosted a roundtable on Zoom to discuss the upcoming IPO as an investment. Check out investing nuggets and thoughts from fellow AIN members below.
What are your thoughts on Coinbase as a crypto platform?
– With over 35 million users, Coinbase is the largest cryptocurrency exchange in the US. It is a safe and secure platform for purchasing and holding coins. However, it is still good practice to diversify your portfolio.
– Has allowed a lot of new investors to easily start investing in cryptocurrency given its simple design.
What does the future hold for Coinbase?
– Some companies say Coinbase could be valued at $100 billion! AIN members were more conservative in their estimates, estimating a $60-80 million valuation. As of July 2021, the market cap of Coinbase is $59 billion.
– According to the Motley Fool, “Coinbase’s public debut became the seventh-biggest U.S. IPO ever, based on market cap at the close of the first day of trading.”
– Members worry that despite the large valuation, Coinbase still holds significant risks since so much of its business is pegged to the volatility and speculation of the crypto market.
What are the potential risks and benefits of investing in IPOs?
– Coinbase collects transaction fees as part of their revenue but are looking to expand their business model, thus there is a lot of potential for the business to grow.
– Some members see it more beneficial to invest in coins themselves versus the stock; however, diversifying was a resounding YES among members.