Coinbase, the most anticipated public offering of 2021 didn’t disappoint when trading started Wednesday. Shares in the cryptocurrency exchange quickly soared as investors looked to cash in on the excitement surrounding digital currency.
Shares traded at $410 soon after Nasdaq began the offering, using the symbol COIN. The exchange had previously set a reference price of $250 per share on the stock, a benchmark for performance when the stock started trading.
It was quickly apparent Wednesday, though, that that benchmark was low. By 10:30 am E.T., the opening price indicator had jumped to $342.
Coinbase decided against a traditional IPO in its public debut and opted for a direct listing, an increasingly popular option among unicorns. Instead of issuing new shares or raising new capital, the company opened up shares directly to the public, sidestepping an underwriter.
Wall Street analysts are cautioning investors to see what happens in the coming months with Coinbase. Competition to Coinbase could find its way to Wall Street – and investor tolerance for the wild ride that comes with cryptocurrencies hasn’t been ascertained yet.
The stock’s initial success certainly underscores traditional investor interest in Bitcoin and other digital currencies, though. Some analysts, before the company’s Nasdaq listing, forecasted Coinbase could debut at a $100 billion valuation.