Coinbase: To go public or not

 

Coinbase is the most popular place that is used across the word for buying and selling bitcoin. Coinbase as claimed by the CNBC COO needs to be made public so that interest of the investors is met. It is stated that the year 2017 was one of the biggest years for Coinbase and 2018 would be bigger if the IPO is initiated. Coinbase confirmed that IPO of about $500million has been raised for a valuation of $8billion. This was a speculation which was confirmed through making financial breakdown regarding the IPO. Coinbase predicted the investment to be strong as it comprised of both equity and common stock. 

The debate was regarding the fact that Coinbase should be public or not for its effectiveness in the world. It is as per my understanding one of the most licensed exchange owing to its transactions which is both upstream and downstream. Coinbase is the oldest exchange in the world of digital currency which was initiated in the year 2012. The question was about it being public but today in the year 2018 it is evident that Coinbase is becoming public. In the year 2017 a total of $1 billion was generated thus the investors wanted it to go public. The idea is to go public so that the crypto market is boomed by about $ 245billion. The president of Coinbase stated that company should have its IPO, but it was vague. Various statements regarding the Coinbase being public was published but all were vague creating curiosity among the investors. 

What’s more, I have determined the fact that Coinbase is one of the largest crypto currency exchanges and has about 25 million registered users. Coinbase is available across the world and has a strong market presence with about 75%. The crypto traders argued about the Coinbase revenue and the aspects of IPO, but the currency created a boom thus breaking the price of Bitcoin. Now before evaluating about its going public or not it is vital for me to state that Coinbase has a revenue source. The revenue sources of Coinbase includes consumers, 15% from the Coinbase Pro, it is an institutional investor. It was opined by many researchers that Coinbase would lead to trillion-dollar valuation. 

However, there are various contradicting opinions regarding Coinbase being public even after the revenue it generated. The COO stated that it is rumor and IPO will not be initiated. In my opinion Coinbase is taking measures and planning strategies to lay equity market by determining the size of the market. Several announcements were made regarding Coinbase and about listing leading to various speculations. It is worthy to note that exchange decisions created issues due to various interpretations. Investors were of the opinion that Coinbase would degrade its brand value by supporting assets which are of low quality. 

In this respect I was of the opinion that Coinbase products are small with weak operations and customer services affecting the platform currency. Coinbase is also linked with capital structure thus impacting the market and the business model. For the growth of the business finances are required which leads to bond financing and equity financing so that the capital structure is managed. From the analysis I have realized that for Coinbase debt financing is vital as it brings financial leverage benefiting enterprises in terms of benefits. The leverage is beneficial when the value is enhanced, and the risks are mitigated. 

The capital structure impacts the Coinbase as it influences corporate governances. It is vital to select the right behavior so that the performances of the market are augmented leading to better growth and prosperity. The intention is to determine the values of Coinbase so that the investors are benefitted. There are various reasons that influence the choice of investors which includes variety of fiat deposits along with withdrawal. 

The Coinbase has insured Bitcoin deposits along with online wallet services. The exchange is friendly and is user interface stating that it is gaining importance in the market and investors. On the other hand, the issue that is witnessed includes slow supports and delayed funds impacting its movement in the market. Several claims are being made to determine the announcement of Coinbase first IPO to augment its position in the market. This exchange is meeting the expectations and is gaining revenue from consumers which help to attain better growth. 

For the interest of the investors I believe that Coinbase needs to get public but various underlying issues are seen. In the year 2018, various reliable sources were of the opinion that the Coinbase would create value for the company. Coinbase raised higher capital in the year 2018 thus positively influencing companies as it increased the valuation of the Wall Street investment banks. 

Coinbase has a strong presence in the market thus leading to broader public image. The maturity of Coinbase in the technological sector is witnessed through the evaluation of Google and Apple. This exchange is gaining importance and it is attaining media attention thus shifting its standards to institutional investors. The issues that might be faced when it moves public are regarding the regulatory trouble leading to risks. The internal and external structure impacts the evolution of Coinbase. In my opinion it is worthy to state that Coinbase is cheap as well as popular for the trading platform to be convenient.