Coinbase goes public!
Let’s check out the tweet below.
Today is a big milestone for Coinbase and an even bigger milestone for crypto. Thank you to our staff and customers for bringing us here. Together we can build the crypto economy and create economic freedom for all. Join today’s events at https://t.co/kki68arv3O $COIN pic.twitter.com/Bvcu9R0otq
— Coinbase (@coinbase) April 14, 2021
Coinbase, a cryptocurrency exchange, is one of the biggest players and the most recognizable name in the crypto market. It would be right to acknowledge the fact that Coinbase has played a pivotal role in taking cryptocurrencies to the next level and revolutionizing the entire cryptocurrency community. In an interesting development, as mentioned in the tweet, we can see Coinbase made its first IPO.
Let’s see what role Coinbase actually plays in Crypto?
Let’s consider an example: Let’s say you are interested in buying a bitcoin. In fact, you have two ways to get bitcoins. You either use a sophisticated computer and mine the bitcoins to solve complex mathematical problems, or you buy them on an exchange. It is easy to guess that the first option is generally impractical. So our only option left is to buy it on an exchange. In such a scenario, Coinbase comes into play. It helps the investor to trade between different cryptocurrencies around the world without any difficulties.
Coinbase executives are selling their shares.
Photo credit: Forbes
When a company goes public, the executives and internal management who own a significant number of shares sell their shares. In the case of Coinbase, nothing unexpected happened. Since the company’s IPO, four top executives have sold $1 billion worth of Coin shares. At the time of sale, the shares were priced at between $189 and $422.
The following is a breakdown of the value of the shares sold by the officials:
- Brian Armstrong sold $292 million worth of shares.
- Emilie Choi then sold $226 million worth of shares.
- Surojith Chatterjee exercised options for $9.7 million and sold the stock for $226 million.
- On behalf of Paradigm One LP, a crypto investment firm co-founded by Fred Ehrsam, he sold around $0.5 million and brought back $75 million worth of coins.
depreciation of stocks.
The stock has lost value since the IPO. Shares, which were trading around $381, fell to $73 in April of this year. The value of the shares fell by 80%. The crypto market implosion added salt to the breach as stock values fell even further. After certain attempts to revive the market through various factors, the stock could experience an uptrend just when the market is able to get back to normal.
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