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Coinbase (COIN) Stock to Start Trading at $250, Company’s Valuation at $66.5B

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As Coinbase heads for a blockbuster listing on Nasdaq, the company announces stock options for its team with each employee getting around 100 COIN shares.

As Coinbase is all set to go public ahead today on the Nasdaq exchange, the company has received a reference point for its COIN shares. As per Nasdaq and Goldman Sachs, Coinbase (COIN) stock should start trading at $250 per share.

Thus, with 266.2 million shares outstanding shares, this gives the company a valuation of $66.5 billion. Also, the reference price is usually a conservative estimate as it depends on market sentiment and public financial information. However, Coinbase has traded much high than this in the private secondary market. The current reference price is 37% lower than $343 per COIN share that Coinbase sold previously.

Also, Coinbase’s implied valuation on the FTX exchange surged to a massive $150 billion on Tuesday, April 13. This brings the pre-trading COIN share price to $600 on FTX.

However, since the exchange is going for a direct listing instead of an IPO, the reference price is not a direct indicator of the company’s market cap. The Nasdaq announcement also notes that the reference point hints at Coinbase’s past transactions. Nasdaq said that it established the reference point in consultation with Coinbase’s financial advisors.

Besides, Nasdaq derived this reference point since Coinbase’s “COIN has not had recent sustained trading in a private placement market”. The Nasdaq announcement states:

“Please note that the reference price is NOT an offering price and nobody has purchased or sold shares at that price. The opening public price will be determined based on buy and sell orders in the opening auction on Nasdaq.”

With Making COIN Shares Public, Coinbase Becomes the First Major Crypto Business to Do It

With its direct listing on the Nasdaq exchange, Coinbase will be the first major cryptocurrency business to go public in the US. The CNBC report notes that if Coinbase pegs a valuation of $100 billion upon listing, it will be among the country’s top 85 most valuable companies.

Besides, the report also mentions that Coinbase will be the first major direct listing. It cites examples of five direct listed NYSE companies like Slack Technologies (NYSE: WORK), Palantir Technologies (NYSE: PLTR), Spotify Technology SA (NYSE: SPOT), Asana Inc (NYSE: ASAN), and Roblox Corp (NYSE: RBLX). All these companies listed on NYSE had an opening price higher by 37% from its reference price. If Coinbase follows the cue, it will value COIN share at a price of $340 with a market cap of $90 billion.

Interestingly, the company has a pleasant surprise for its employees as it heads for public listing. Coinbase announced that it is releasing $45 million in stock options to its employees Probably, each of the Coinbase employees shall get 100 COIN shares.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.





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Ethereum price closes in on $4K as Shiba Inu (SHIB) steals Dogecoin’s thunder

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The crypto market has rallied into the weekend as Ether (ETH), Dogecoin (DOGE) and Shibu Inu (SHIB) hit new all-time highs as they lead the pack of altcoins up the market cap mountain. 

Much of the excitement behind Dogecoin’s rally has been attributed to the upcoming appearance of Elon Musk, the CEO of Tesla and a Dogecoin advocate, on the popular Saturday Night Live comedy sketch show. Ether, on the other hand, continues to rally toward $4,000 as institutional interest in the altcoin soars and the approaching London hard fork have investors feeling extra bullish.

Data from Cointelegraph Markets and TradingView shows that after briefly dipping to a low of $3,418 in the late hours on May 8, Ether price regained its composure and proceeded to vault 13% to reach a new all-time high at $3,958. 

ETH/USDT 4-hour chart. Source: TradingView

While some have been surprised by the bullish movement from the second-largest cryptocurrency by market capitalization, it comes as no shock to Cointelegraph market analyst Marcel Pechman who recently detailed how Ether “could easily sustain until $5,000.”

Bitcoin (BTC) has used its time out of the spotlight to quietly climb higher with bulls now attempting to hold the price above $59,000.

Canine-themed ‘meme coins’ lead the pack

Dogecoin has emerged as one of the biggest mainstream attention grabbers in cryptocurrency history as scores of new users got their first taste of crypto trading from the popular meme token.

The week-long build-up in momentum for DOGE led to a 25% surge in the early trading hours on Saturday that lifted its value to a new all-time high at $0.74 before profit-taking dropped the price back below $0.68.

DOGE/USDT 4-hour chart. Source: TradingView

Thanks to the global attention that Dogecoin has attracted, a number of canine-themed projects have arisen, including Shiba In (SHIB), which burst onto the scene following a two-day rally that saw its value launch 1,100% higher to establish a new record high at $0.0000178.

The overall cryptocurrency market cap now stands at $2.463 trillion and Bitcoin’s dominance rate is 44.8%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.