Coinbase IPO success will be a huge success to the entire crypto industry, as other crypto firms are expected to follow suit.
The crypto exchange FTX launched Coinbase pre-IPO tokens that have since that time more than doubled in market price. Following last week’s Coinbase IPO announcement, investors are highly speculating on the expected opening prices.The Coinbase pre-IPO tokens were launched at a market price of around $121, only to pump to trade around $296 in the first hour. However, they had averaged at around $242 at the time of writing. Coinbase IPO is largely anticipated not only because of its huge market dominance in terms of daily traded volume but also due to the fact that it is the first crypto exchange to go public.Coinbase Pre-IPO TokensIncidentally, the Coinbase IPO has coincided with the Bitcoin and most altcoins expected rally. Hereby, stamping a fact that digital assets are here to stay and revolutionize the market.Notably, the Coinbase pre-IPO tokens are backed by German financial institution CM-Equity, which in turn holds the actual shares represented by the tokens. In a bid to control the maximum input, FTX noted that the maximum market capitalization of the Coinbase pre-IPO tokens is set at $250 million. With the increased investors hype, the set limit is expected to be attained in due time.Coinbase IPO and Its Industry EffectCoinbase IPO success will be a huge success to the entire crypto industry, as other crypto firms are expected to follow suit. At the beginning of the year, Ripple CEO Brad Garlinghouse noted that 2020 is the crypto year and a number of related firms will go public.The pre-IPO tokenization is deemed a highly risky business and investors should only be involved in them with the knowledge that they could lose their entire investment.Founded back in 2012, Coinbase has been involved in prior private funding, whereby it has raised around $547.3 million. Reportedly, Coinbase is said to have a market valuation of approximately $8 billion.The crypto firm is said to serve over 35 million global customers, whereby it managed to add approximately 5 million customers in the twelve months leading to July 2020. The firm is notably said to hold over $14 billion institutional funds that are diversified in different digital assets. Worth noting is the fact that investors are willing to put their capital with Coinbase despite the firm not reporting its financial statements in the past. However, the firm is said to be audited by Deloitte, which can be viewed as a transparency assurance.Currently, Coinbase is awaiting the SEC to complete its review of the form S-1 sometime next year.