The Simpsons Reports Bitcoin Price at Infinity; This Week’s Catalyst to ‘Blow People’s Minds’
Coinbase’s Wednesday listing a “big milestone” for the industry whose valuation dwarfs Google’s at the time of its IPO and the current market cap of Nasdaq and ICE, which runs the NYSE.
Bitcoin is nearing its all-time high as the market gets extremely excited about the upcoming listing of the largest US cryptocurrency exchange on Wednesday.
Going as high as $61,300 today, BTC is hovering around $60k. But the market believes we are nowhere near the top.
In fact, according to The Simpsons, Bitcoin is going to infinity.
— Documenting Bitcoin 📄 (@DocumentingBTC) April 12, 2021
Being the first major crypto company to do so has put everyone’s eyes on it. This listing is expected to provide the crypto market and other crypto exchanges an idea about investor appetite for the crypto industry and other start-ups in the sector.
“A crypto company moving to IPO is a big milestone,” said Nick Jones, CEO, and co-founder at crypto wallet Zumo.
“It’s moves like this that make consumers feel safer with crypto and ultimately boost confidence in the space.”
As we have seen recently, more and more mainstream companies are entering the sector. Besides Tesla and Square putting BTC in their Treasury, Goldman Sachs and Morgan Stanley are all set to offer their clients access to Bitcoin. Also, PayPal, Mastercard, and Visa have joined in.
An interesting facet about this listing is Coinbase’s $100 billion valuation.
Commenting on the eye-popping valuation, Amy Butte said more interesting is the fact that crypto is a “real innovation in financial services,” and Coinbase has added to this innovation in terms of settlement and new use cases.
“Institutions even in the last 3-4 months have really come in, and corporates have come in and said hey I need to have crypto as a part of my treasury planning.”
As for context on this valuation, Google's IPO was worth only $23 billion, and unlike Coinbase’s no lockup period, the tech giant’s employees were locked out from selling for 6 months.
As for exchange comparison, Intercontinental Exchange, which runs the New York Stock Exchange (NYSE), has a market cap of $65 billion, and Nasdaq has only $25 billion.
“Coinbase is going to blow people’s minds,” said Matt Hougan, CIO at Bitwise Asset Management. “I think it’s going to force traditional finance to wrestle with the phenomenal growth that is taking place in crypto.”
But it makes sense given that Coinbase reported revenue of $1.8 billion, with an adjusted EBITDA of $1.1 billion. And, of course, 56 million verified users. These numbers have the market expecting a rush of investors and crypto ETFs to own it.
“It is possible our ETF will be the first to own it,” said Matt Kennedy, senior IPO market strategist at Renaissance Capital.
“Simple arithmetic implies that Coinbase is gaining 1 million users & $10 billion in digital assets each week. This direct listing will be a wake-up call for institutional investors, financial advisers, & investment banks worldwide. Bitcoin Rises.”