Cathy Wood’s Ark Fund, known as “Female Buffett,” bought nearly $250 million worth of shares in the largest U.S. cryptocurrency exchange on the first day of listing on Coinbase on Wednesday, and bought another 110 million worth of shares on Thursday. U.S. dollar shares.

Ark Innovation ETF, Ark Financial Technology Innovation ETF and Ark New Generation Internet ETF bought 749,205 Coinbase shares on Wednesday. Based on Wednesday’s closing price, it is worth about 246 million US dollars.

On Thursday, the three funds bought a total of 341,186 shares of Coinbase, which is worth about 110 million U.S. dollars based on Thursday’s closing price.

The first share of the cryptocurrency exchange, Coinbase, was officially listed on the Nasdaq (14038.7632, 180.92, 1.31%) on Wednesday, with the stock code “COIN”. It rose by about 52% on the first day of listing, and the opening price was reported at $381, an intraday increase. It reached 70%, and its market value exceeded US$100 billion, reaching US$112 billion at one time. However, the stock price fell all the way and fell below the opening price. As of the closing stock price rose 31.31%, and the market value exceeded US$64.5 billion.

On Thursday, the stock fell 1.68% to close at $322.75.

Source: Sina.com

Economic Observer Network reporter Ren Xiaoning, intern Lu Shuo At the highest point of $65,000 on the Bitcoin site, a platform for trading Bitcoin in the United States was listed on the Nasdaq. On April 14, US Eastern time, Coinbase went public. It is the first bitcoin exchange with a formal license in the United States and the first listed cryptocurrency company. For the currency circle, last night was an important milestone moment. Terence, the business leader of Binance Greater China, told the Economic Observer that the listing of Coinbase is a recognition from the mainstream world for the industry. It also provides experience for companies in the crypto asset industry or the blockchain industry to prove transactions. The stock can also be listed. Big ups and downs on the first day of listing After the opening on April 14th, Eastern time, the market value of Coinbase rose sharply and broke through 110 billion U.S. dollars, and then quickly shrank. A few hours later, it plunged by nearly 30%, and its market value at the close was 61 billion U.S. dollars. 2.4 times the market value, net worth has surpassed traditional financial institutions. Founded in 2012, Coinbase is the largest Bitcoin and other digital currency trading platform in the United States. Last year, Coinbase’s revenue was US$1.277 billion, an increase of 140% over 2019; net profit in 2020 was US$322.3 million, an increase of 960% over 2019. Coinbase is a compliant exchange in the United States. It is the first licensed bitcoin exchange in the United States. It has digital currency trading licenses (MSB) in many states in the United States, as well as digital currency licenses from the central banks of the United Kingdom and Ireland. Coinbase provides trading services for Bitcoin and other digital currencies. The current digital currency environment is getting better. Since the beginning of this year, Bitcoin has experienced a round of skyrocketing market, from 30,000 US dollars at the beginning of the year to 65,000 US dollars today.TeslaThe founder Musk is an optimist for digital currency, and Tesla can already use Bitcoin to pay.Morgan Stanley,Goldman Sachs,Black stoneAs companies invest in Bitcoin as a store of value, California real estate company Caruso also announced that it will accept Bitcoin as a rent payment. The coexistence of bubbles and opportunities Despite the gratifying gains, the outside world has always had doubts about Coinbase. The first thing to bear the brunt is whether there is a bubble in its high market value. Investment research company New Constructs stated that the overall valuation of cryptocurrency platforms is too high. As the market matures and more competitors join, Coinbase’s high profits will inevitably be eaten away. The ridiculous valuation of $100 billion will only make They cannot realize the expected profit. As a platform party, Coinbase’s revenue mainly comes from commissions charged when providing online transactions of encrypted assets, and fees ranging from 0.5% to 0.04% are charged based on the transaction volume. This part accounts for up to 86% of revenue. In 2020, Coinbase has approximately 2.8 million monthly active users, an increase of 180% from the end of 2019. The total crypto transaction volume in 2020 is US$193.09 billion, an increase of 141.7% from 2019. Compared with similar digital currency exchanges, Coinbase’s commission fees are relatively high. How to continue to grow in the environment of low-price competition from opponents is a problem that Coinbase needs to face. In addition, cryptocurrencies still have gray areas under the existing regulatory system. Even though Coinbase has made great efforts in legal compliance, the red lines still happen from time to time. On March 19, Coinbase and the US Commodity Futures Trading Commission (CFTC) reached a settlement with allegations of improper reporting of trading volume and “self-trading”, and were fined 6.5 million yuan. This incident also delayed Coinbase’s listing plan to April. Previously, Coinbase had repeatedly confronted the CFTC on suspicion of cross-trade transactions, illegal sales, and security deposits. Terence told reporters that at present, the legal provisions of US cryptocurrency exchanges in terms of operating mode and product form are still in the groping stage. In the future, the regulatory provisions and related policies of the SEC and CFTC may be adjusted and become more stringent at any time. Coinbase listed 27 key points on volatility risk in the prospectus, including changes in investor confidence, negative publicity on social media, regulatory issues, and technical issues. However, in any case, the listing of Coinbase is a big step for the cryptocurrency industry. Terence said that the listing of Coinbase will arouse more attention to cryptocurrencies in the traditional financial sector, and will also help increase user trust in exchanges, provide endorsements to the crypto industry, and benefit the overall market.

What Apple is in the mobile phone industry and Amazon in online trading, that should be Coinbase in the cryptocurrency scene. At least that’s what Thomas Rappold, financial expert for the tech industry and author of numerous books on technology stocks, thinks. On Coinbase, 56 million investors buy and sell around 50 different crypto currencies – from Bitcoin to “SushiSwap”. An estimated eleven percent of the market flows through the platform. Coinbase is one of the biggest beneficiaries of the current Bitcoin boom. No wonder the crypto heavyweight’s IPO caused a stir on Wall Street today. Investors fought for stocks. The initial price was $ 381 – $ 131 above the reference price of $ 250. This corresponds to an increase of a good 52 percent.

Worth more than the New York Stock Exchange

Thus, the crypto trading platform is now worth almost $ 100 billion more on the stock exchange than any other exchange operator. For comparison: The operator of the New York Stock Exchange, the Intercontinental Exchange, currently only has a market capitalization of just under $ 66 billion. Some analysts believe that price soaring will continue on the first day of trading. They think a valuation of $ 100 billion to $ 170 billion is possible.

From the niche to the Wall Street mainstream

The first IPO of a company whose business model is based purely on trading cryptocurrencies is a satisfaction for many fans of cyber currencies. You will see the listing as a Milestone for Bitcoin & Co . on the way to the Wall Street mainstream. “As of today at the latest, Wall Street can no longer ignore cryptocurrencies,” said expert Timo Emden from the analysis company Emden Research. Coinbase is currently highly profitable. In the first quarter, the profit should have been between 730 and 800 million dollars, the platform operator recently announced. Sales even climbed to $ 1.8 billion. The number of users more than quadrupled in the first three months of this year – from 13 to 56 million.

Depending on the Bitcoin rate

The trading platform mainly earns its money through fees. The higher the price of Bitcoin & Co. rises, the higher the fee. Accordingly, business is currently booming. The price of Bitcoin has increased almost tenfold within a year – from $ 6,500 to almost $ 65,000. A new record of $ 64,899 was hit on Wednesday. But the profitability of Coinbase stands and falls with the rates and trading volume of cryptocurrencies. If a crash occurs, for example in 2018, when the Bitcoin rate fell by over 70 percent and other cyber currencies such as Ethereum even more sharply, Coinbase’s business also collapses. “We can also make money,” admits Coinbase co-founder and CEO Brian Armstrong. The business model is therefore extremely prone to fluctuations.

Coinbase CEO Brian Armstrong

Fee pressure is likely to rise

Should the competition increase further and the crypto rush evaporate, the fees of the trading platforms could also come under pressure – similar to the last one with online brokers or the operators of share trading apps. Especially smaller of the more than 200 crypto exchanges are trying to attract customers with lower fees. The PayPal group, which has now also started trading Bitcoin, could further fuel competition. Experts see regulation as a further risk. Jesse Powell, head of Coinbase competitor Kraken, recently warned on CNBC that governments would crack down on digital currencies – whereby criminals like to use cryptocurrencies. Coinbase is trying everything to avoid ending up in this dirty corner. The company sent its managers to the FBI and the Secret Service to explain to them that Coinbase was not an Eldorado for money launderers and drug dealers.

Safe from total loss?

The best Regulation in this country offers protection against a total loss of the investment , says Philipp Sandner, Head of the Blockchain Center at the Frankfurt School of Finance. In addition to three other trading platforms, Coinbase has applied for a license from BaFin. The cryptocurrency industry is also not immune to the risk of hacker attacks. In 2013, hackers stole millions on various crypto exchanges. Coinbase claims it has never been hacked. The entrepreneur secures his customers’ money by mainly keeping the key codes separate from the internet.

From Till Bücker, tagesschau.de On Wednesday, the largest US trading platform for cryptocurrencies will venture onto the trading floor. Proponents of Bitcoin and Co. see this as a further step towards broader acceptance of digital currencies as an asset class. According to the company’s own information, 114.9 million shares are to be listed under the symbol “COIN” on the New York technology exchange Nasdaq via a direct placement without the support of investment banks and pricing procedures. This makes Coinbase the first crypto company to be listed on a major American stock exchange. Experts also describe the stock market debut as a groundbreaking event for the regulation of digital currencies.

43 million users

The company from San Francisco was recently valued by investors at almost 68 billion dollars. According to the business magazine “Forbes”, Coinbase could achieve an overall valuation of more than 100 billion dollars in the transaction – making it one of the largest IPOs in recent years. In October 2018, the company was valued at just eight billion dollars in a financing round. In 2012, Coinbase boss Brian Armstrong and Fred Ersham, who is no longer operational as a director, founded the platform to enable easy and fair trading in cryptocurrencies – apparently with success. According to the company, around 43 million investors in over 100 countries use Coinbase to invest. 2.8 million at least once a month.

Brian Armstrong is the boss and founder of Coinbase. At least Coinbase is benefiting from the transactions: for 2020, the company reported revenues of around $ 1.3 billion, which was more than double the previous year. The bottom line was a profit of $ 322 million. In 2019, Coinbase had earned a minus of 30 million. The soaring is closely related to the Hype about cryptocurrencies. Bitcoin and Ether in particular have only known one direction since autumn, with minor exceptions: up. Both currencies recently reached a new record high. At the end of September, a Bitcoin had cost $ 10,000. Today, investors have to pay more than $ 60,000 for the oldest and largest cyber currency.

How does trading on crypto exchanges work?

Anyone who wants to trade cryptocurrencies – for example, shares in Bitcoin – has several options. Usually there is different from the stock market no middleman like a bank or broker. Investors can therefore buy and sell mainly via crypto exchanges. In addition to Coinbase, this also includes, for example, the Stuttgart Stock Exchange with its BISON app and the BSDEX (Stuttgart Stock Exchange Digital Exchange) as well as FTX, Binance, Bitstamp, Bitso or Kraken, which are also planning an IPO in the coming year. Investors set up an account at the crypto exchanges and can trade with relatively low transaction costs, store their coins and exchange them for traditional currencies. With traditional exchanges, on the other hand, brokers are always interposed to process the transactions. What is an advantage in terms of transparency is, on the other hand, also a risk. “It can happen that stock exchanges are exposed to hacker attacks and the money disappears,” said Leon Berghoff from the crypto trading company Sixtant. According to a report by the server service provider “Atlas VPN”, there were more than 120 hacker attacks on cryptocurrencies in 2020 alone. A lack of government regulation could also become a problem.

Investors should look carefully

“There are now over 200 crypto exchanges worldwide. Some of them are well done, but others are not”, says Philipp Sandner, head of the Blockchain Center at the Frankfurt School of Finance & Management, in an interview tagesschau.de. Regulation in this country offers the best protection against a total loss of the investment. For example, Coinbase, the Stuttgart Stock Exchange, bitcoin.de or the Berlin crypto bank Bitwala have applied for approval from the Federal Financial Supervisory Authority (BaFin).

Expert Sandner advises paying attention to licenses. “These four companies should get the licenses pretty sure. With all the others, investors should stay away from it if they are not entirely sure,” said Sandner. Many foreign exchanges have not applied for a BaFin license and deliberately circumvented regulation due to high costs.

Security through a good reputation

In addition, a certain reputation is also helpful. “Once a company has built up a good reputation like the Stuttgart Stock Exchange, it will do everything possible not to damage it,” says Sandner. That is an additional protective mechanism. The reputation also contributes to success at Coinbase. The group has always complied with the rules and is therefore even allowed to advertise. In addition, hackers have never got through. “You can compare it a little with airlines. As soon as an airplane had problems, the whole country suddenly no longer wants to fly with it – and vice versa,” said the crypto expert. Investors should first be careful with unknown and non-established crypto exchanges. The IT measures on many platforms have meanwhile become more professional. In general, however, cybercrime can never be ruled out.

CEO Brian Armstrong has made $ 12.4 billion on the list of the world’s billionaires

On April 14, the largest crypto exchange in the US officially went public on the Nasdaq with a value of up to $ 86 billion. This helped the fortune of co-founder and CEO Brian Armstrong rise to 12.4 billion USD, becoming the 175th person on Bloomberg’s list of world billionaires.

After earning a master’s degree in computer science from Rice University, CEO Armstrong founded UniversityTutor, a website that offers online tutoring services and has been running for almost a decade but with little success. He then moved on to work as a software engineer at Airbnb for about a year.

By 2012, founders Brian Armstrong and Fred Ehrsam officially partnered to create Coinbase, a cryptocurrency exchange that allows users to buy and sell more than 40 different digital assets, including cryptocurrencies. like Bitcoin, Ethereum and Litecoin.

It is known that the 38-year-old billionaire currently owns about 40 million Coinbase shares. “I think some digital currencies will eventually be the world’s reserve currencies. I see their future,” said CEO Armstrong.

This Coinbase IPO is considered a turning point in the market because this is the first time that a company associated with a cryptocurrency has been listed on the public.

In the last two years, the value of Bitcoin has increased dramatically, making the names of CEO Brian Armstrong and Coinbase become famous in the tech world with about 56 million users worldwide, managing more than $ 320 billion in total volume. deal.

The bullish momentum of digital currencies such as Bitcoin, Ethereum currently reaching the milestone of $ 63,000 and $ 2,500 respectively are considered leverage to help Coinbase achieve impressive revenue and profit.

In 2020, this crypto exchange had a turnover of $ 1.3 billion. In its preliminary report for the first quarter of this year, Coinbase showed that revenue for the same period increased 9-fold to $ 1.8 billion and net income increased from $ 730 million to $ 800 million.

After the IPO, Coinbase is receiving a lot of expectations from experts as well as those who believe in cryptocurrencies for a solid future in the market.