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05
Mar, 2021

The Reality after Coinbase’s IPO

Many analysts cheered about Coinbase’s IPO at NASDAQ as a significant move that shows how much cryptocurrencies have entered the financial world’s everyday life. Older analysts compared this move with Netscape’s IPO, the first company that went public with a major focus at Internet services.

 

From this moment and on, an investment in Coinbase will be translated as an investment at crypto trading. Although this move, the situation in the crypto space is not ideal. The 5 bigger crypto exchanges hold 40 % of the total volume while Coinbase is ranked 19th in terms of trading volume, gaining a 2 % stake from the global market.

 

The main difference between crytpocurrencies and stocks is that the price could be different for the same coin at every exchange, letting gaps for arbitrage purposes while each exchange’s fees (formed from different factors) are affecting the investment liquidity. Those characteristics could change as the cryptos are becoming more mainstream like Coinbase’s IPO.