How will Coinbase's IPO affect the industry?

Yuri Mazur, Head of Data Analysis Department, CEX.IO Broker

– Coinbase IPO Is Significantevent for the cryptocurrency industry, since this is the first listing of a cryptocurrency company on NASDAQ. All cryptocurrency media anticipated this listing. But the fact that the company's capitalization was valued by NASDAQ at $65.3 billion and rose to $85.8 billion in the first trading session should attract the attention of general media around the world, and therefore have a positive impact on the attention of the industry as a whole.

However, in our opinion, one should not expect significantimpact of Coinbase listing on market dynamicscryptocurrency. Bitcoin and Ethereum are too highly decentralized for an initial public offering on one exchange to significantly increase or decrease their capitalization.

Coinbase listing took place on April 14th andDuring two trading sessions on April 14 and 15, Bitcoin volatility was relatively low. On the CEX.IO exchange, the BTC rate during this time was mostly in the range of $62,250 – $63500. This suggests that there was no serious reaction to the IPO in the cryptocurrency market.

We believe that this event has already been played.market, and in the future there will be no noticeable influence on the rates of the most popular cryptocurrencies. However, the situation on the crypto market will directly affect the value of the stock exchange.

Also, in our opinion, the Coinbase IPO will setsome bar for the implementation of financial reporting and various legal procedures for other representatives of the cryptoindustry who want to follow the example of the American company.

But direct investments in Bitcoin and otherscryptocurrencies from major market players will continue to have a decisive influence on their market dynamics. The event may also trigger a wave of public offerings of cryptocurrency exchanges and other companies from this industry.