The exchange’s Wall Street listing could represent the beginning of cohesion between digital money and traditional finance.
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The upcoming IPO of Coinbase , the first publicly traded cryptocurrency exchange, will be a huge financial milestone. According to analyst Gil Luria, from DA Davidson , it will be an ‘Amazon moment’ for electronic currencies , as it represents the convergence between these and conventional finance.
In an interview for CNBC , Luria explained that Coinbase’s direct listing on the stock market will be a historic event, as cryptocurrencies will go from being “a great curiosity to becoming the future path for much of the financial system .”
In a recent note, DA Davidson calculated a “buy” rating and a price target of $ 195 for the cryptocurrency exchange . Analysts claim that the experience that Coinbase provides to the user, in terms of facilitating the exchange between cryptocurrencies and fiat money, has made the platform the “leader” of exchanges.
“With a big goal on its back, being a crypto wallet, (to date) Coinbase has been able to manage both government regulators and highly motivated hackers, while providing consumers with the experience they have come to expect from a great financial institution ” , explained the analysts led by Luria.
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– Coinbase (@coinbase) March 2, 2021
DADavidson pointed out that Coinbase , as an exchange and broker, has competition from entities such as Grayscale , Kraken and Gemini . There are also other broader digital wallets such as Square , PayPal and Robinhood .
The $ 195 price target set by the finance company is based on estimated revenues for 2021, while the previous year was $ 1.28 billion, a jump of $ 553.7 million from 2019, according to data included in the registration request of Coinbase .
The financial company pointed out that Coinbase is a more speculative investment than other companies it covers. They also warned of the unusually high risks associated with cryptocurrency price volatility. They said that it is too early to know if Coinbase will really become the Amazon of ‘crypto’.
With information from Fintech Zoom .