Coinbase IPO was the largest IPO in 2021. 86 billion USD valuation

[bitmover]

I found this nice infochart about IPO visualizations, and I was surprised to see that Coinbase was the largest IPO in 2021.

With a 86 billion dollars valuation, it was the largest of the year of 2021.



https://www.visualcapitalist.com/companies-going-public-in-2021-visualizing-ipo-valuations/

Let's see what is waiting us in the future. I was really impressed with the size of this IPO and I didn't expect a so much successful one by coinbase.

Will Binance do one some day? They are are now complying to all regulations, and just began enforcing mandatory KYC on all users amid mounting regulatory pressure

They are probably looking to comply to do something bigger.

[jackg]

I think binance would take a few years to do an ipo though, it's potentially something for about 4 years time but it'll take them a while to get to the point coinbase was at.

I'm also not sure where they'd hold the ipo since a lot of Americans mightve invested because the ipo was in the US, putting binance's in Singapore might make them less trusted and might block US customers from investing too (due to regulations).

[The Sceptical Chymist]

I was really impressed with the size of this IPO and I didn't expect a so much successful one by coinbase.

I'm not sure if I'd be impressed with that or not--do you think Coinbase is actually worth $86 billion?  I just took a look at their P/E, and it's 30.64.  That's probably low for a tech stock, but for a financial institution (which is basically what Coinbase is), it's high.  They've either got to keep growing their profits or their stock price is going to sink until that P/E is down to around 10-15, in my opinion.

On the other hand, they do have real earnings, which is more than can probably be said for a lot of companies on that infogram.  I don't recognize most of the names on it, but they sound like they're mostly tech companies and I'd bet that most of them don't even have any earnings yet.

I'd only invest in Coinbase if they started to pay a dividend, which most financial stocks do.  At least with that, there's some reason to hold the stock if it doesn't produce any capital gains.

[mk4]

I'm not sure if I'd be impressed with that or not--do you think Coinbase is actually worth $86 billion?  I just took a look at their P/E, and it's 30.64.  That's probably low for a tech stock, but for a financial institution (which is basically what Coinbase is), it's high.  They've either got to keep growing their profits or their stock price is going to sink until that P/E is down to around 10-15, in my opinion.

On the other hand, they do have real earnings, which is more than can probably be said for a lot of companies on that infogram.  I don't recognize most of the names on it, but they sound like they're mostly tech companies and I'd bet that most of them don't even have any earnings yet.

I think it's because people look at Coinbase a lot more of a tech growth stock than an actual finance company. And the fact that Coinbase holds crypto(and are planning on buying more using $500m as per the recent announcement), people can use Coinbase as a sort of "safer" crypto index.

I'd only invest in Coinbase if they started to pay a dividend, which most financial stocks do.  At least with that, there's some reason to hold the stock if it doesn't produce any capital gains.

Knowing that the cryptocurrency space is a fast moving industry, I doubt they'd provide dividends anytime soon. Knowing that new potential revenue streams could appear out of nowhere; they'd definitely want to always have money ready.

[ChiBitCTy]

Is anyone else amazed that during the whole Coinbase IPO phase, both all of the hype leading up to and during the IPO day, that almost no one at all brought up the fact that Coinbase is a HIGHLY corrupt organization.  It honestly sickened me to see all of the hype that they were getting yet it wasn't mentioned nearly what so ever of all of the corrupt shit that Coinbase has been involved in since they opened up. Just saying is all.

[mk4]

Is anyone else amazed that during the whole Coinbase IPO phase, both all of the hype leading up to and during the IPO day, that almost no one at all brought up the fact that Coinbase is a HIGHLY corrupt organization.  It honestly sickened me to see all of the hype that they were getting yet it wasn't mentioned nearly what so ever of all of the corrupt shit that Coinbase has been involved in since they opened up. Just saying is all.

I knew there has been A LOT of Complaints concerning Coinbase and their laughably bad customer support, but what do you mean by "highly corrupt" specifically? In what way?

[bitmover]

I knew there has been A LOT of Complaints concerning Coinbase and their laughably bad customer support, but what do you mean by "highly corrupt" specifically? In what way?

The only possible corruption I saw regarding coinbase was insider information and market manipulation during bch drama in 2017
There was some investigation  but I think nothing happened.

https://www.theverge.com/2017/12/20/16800940/coinbase-bitcoin-cash-fork-insider-trading-probe

Coinbase has launched an internal probe to identify whether its employees engaged in insider trading of Bitcoin Cash shortly before the cryptocurrency was officially introduced to the exchange yesterday. Increased trading led to a spike in Bitcoin Cash’s valuation, and just four hours after its introduction, Coinbase suspended trading of the digital currency.

Coinbase’s ethics policy prevents employees from “trading on ‘material non-public information,’ such as when a new asset will be added to our platform,” wrote Coinbase CEO Brian Armstrong in a Medium post today. That includes sharing that information with friends and family. In the hours before Coinbase added Bitcoin Cash to its exchange, the price of the cryptocurrency had already begun to rise. The price for a single Bitcoin Cash coin soared past $8,000, or more than double its price a day earlier.

They concluded nothing wrong happened:
https://fortune.com/2018/07/24/coinbase-insider-trading/

Coinbase, the biggest U.S. cryptocurrency exchange, launched an inquiry last December into whether its employees engaged in improper trading related to the digital currency known as Bitcoin Cash. Now, Fortune has learned, the company has wrapped up the investigation and concluded no wrongdoing took place.

[Fortify]

I found this nice infochart about IPO visualizations, and I was surprised to see that Coinbase was the largest IPO in 2021.

With a 86 billion dollars valuation, it was the largest of the year of 2021.

Let's see what is waiting us in the future. I was really impressed with the size of this IPO and I didn't expect a so much successful one by coinbase.

Will Binance do one some day? They are are now complying to all regulations, and just began enforcing mandatory KYC on all users amid mounting regulatory pressure

They are probably looking to comply to do something bigger.

That's definitely a very interesting and well visualized graphic to represent all the IPO's so far this year. To anyone looking at the statistics, Coinbase was a real money making machine when it launched this year - the fees that they are able to charge bring in huge profits and their first mover (biggest surviving exchange so far) size advantage helps them to dominate the market. Binance must also be raking in the profits with their extortionate withdrawal fees and the amount that they're able to raise from trading - unlike the fairly standard buy/sell functionality of Coinbase. You really have to question if we're in some kind of bubble when you see results like that and it's worth considering that the price has dropped around 25% since launch.

[Gyfts]

...

Crypto IPO's are hot right now.

Maybe they might be over inflated, but the stock market seems to overvalue any company that might have crypto associated with it. I read this article years ago so I don't have it on hand, but it was a report how companies can just attach "blockchain" to their identity and public interest in the company increased based on that alone, despite the tech not even being related to block chain. You're seeing the same phenomenon with marijuana stocks as more countries make it legal, so a lot of international commerce with marijuana is going to happen, especially when the US legalizes it outright. Current investors will overvalue weed stocks.

[just_Alice]

It’s a little weird to see such different companies in comparison, but anyway, I’m not surprised that Coinbase is the leader. It is no secret that demand for cryptocurrencies has grown insanely since the beginning of the pandemic. Naturally, the respective exchange platform has grown in value as well.

I’m not sure if Binance will go public in the nearest future. At least in March 2021, their CEO announced that they don’t plan on doing so. I don't think this would’ve been the best time for Binance to go public anyway, especially with Coinbase on the move. In addition, they ought to regain their reputation after the hacks first.

[dothebeats]

Albeit being a rough year, we still see a massive interest in crypto IPOs in 2021. It's really incredible to also put things into perspective on how well Coinbase, a company focusing on cryptocurrencies, bested some of these companies that are 'in demand' or have an already established market and audience in the world. I personally think that Coinbase isn't worth that much ($86 billion), but investors think otherwise and they see potential in a tech/finance company that started a lot of firsts in this industry.

I think binance would take a few years to do an ipo though, it's potentially something for about 4 years time but it'll take them a while to get to the point coinbase was at.

I'm also not sure where they'd hold the ipo since a lot of Americans mightve invested because the ipo was in the US, putting binance's in Singapore might make them less trusted and might block US customers from investing too (due to regulations).

Binance will catch up, though with the way they handle things, it would be a long ass time before they get people and enough deep pockets to take them seriously in this route. Too many shady practices still being done on the platform, and I don't think it invites people to invest in one's company.

[jackg]

I think binance would take a few years to do an ipo though, it's potentially something for about 4 years time but it'll take them a while to get to the point coinbase was at.

I'm also not sure where they'd hold the ipo since a lot of Americans mightve invested because the ipo was in the US, putting binance's in Singapore might make them less trusted and might block US customers from investing too (due to regulations).

Binance will catch up, though with the way they handle things, it would be a long ass time before they get people and enough deep pockets to take them seriously in this route. Too many shady practices still being done on the platform, and I don't think it invites people to invest in one's company.

There does seem to be a lot of issues with binance that people have, and while some are probably just random, others about counter trading and some manipulations would be something I can't disagree with as I'm seeing more signs from their website that they do those sorts of things.

They could and probably should get to the point where they're a bit more stable though - I imagine their teams are quite fragmented though too with them trying to do all of the hiring themselves and not seeming to look for companies that can handle stuff in places they're not accustomed to.

[tabas]

In relation to Coinbase, there's a good reason why we see some pumps lately.
Coinbase is buying $500 million in crypto and investing future profits into a crypto portfolio
And I think with its IPO, being valuated that much, they're contributing well to the market and having a good share to its growth. In continuation, they're likely to increase its value overtime.

[Kemarit]

It's just a matter of time before CZ will go for an IPO.

Cryptocurrency Exchange Binance is mulling an initial public offering (IPO) in the US. Binance CEO Changpeng Zhao (CZ) reportedly revealed the possibility of a future IPO while speaking at the "Redefine Tomorrow" event organised by SCB 10X the venture arm of Thailand's oldest Siam Commercial Bank.

However, he said the IPO plan “is not 100% fixed yet.”

Zhao said IPO plans aren’t immediate as the company will need to go through structural changes to comply with regulations including headquarters, an office, or a legal entity, The Block reported citing Zhao.

And maybe the KYC mandatory that we've seen today is one step further for the "structural changes that he said a couple of weeks ago. And for sure he wanted to smoothen everything specially with the US regulators. Won't be surprise if the plan will push forward early next year when the price of bitcoin hits 6 digits at least.

[Jawhead999]

I speculate if Binance launched an IPO, it will overtake Coinbase sooner or later because Binance users is much higher. Coinbase was used mostly by US and UK citizens which is mostly whales, while Binance mostly used by China, third world countries and global except US and UK (though they can use Binance.us but more strict).

But I'm not really sure Binance could easily launch an IPO, they will need to fill many requirement, investigation by SEC and another such politic power.

[Sithara007]

I think binance would take a few years to do an ipo though, it's potentially something for about 4 years time but it'll take them a while to get to the point coinbase was at.

I'm also not sure where they'd hold the ipo since a lot of Americans mightve invested because the ipo was in the US, putting binance's in Singapore might make them less trusted and might block US customers from investing too (due to regulations).

LOL.. is that even possible? Binance is already traded in the cryptocurrency market (in the form of BNB). Now how can they convert these BNB tokens to shares in mainstream stock exchanges? That may not be impossible, but I suspect it will take a lot of paperwork and formalities. Also, it would e interesting to see in which exchange they will go for the IPO listing. Coinbase is a US-based company and therefore they went for the NASDAQ. However, Binance is based in Cayman Islands and there they don't have a stock exchange.

[semobo]

Coinbase exist here for too long and one of the highly regulated exchange which still offering their services for selected countries, actually I am not a fan of coinbase but this is the first ever IPO in the crypto space which gabe appreciable recognition to the cryptocurrency more. Binance already been the biggest of all the exchanges due to their less KYC features so I don't expect them to plan about IPO in the next few years.

[Obito]

I speculate if Binance launched an IPO, it will overtake Coinbase sooner or later because Binance users is much higher. Coinbase was used mostly by US and UK citizens which is mostly whales, while Binance mostly used by China, third world countries and global except US and UK (though they can use Binance.us but more strict).

But I'm not really sure Binance could easily launch an IPO, they will need to fill many requirement, investigation by SEC and another such politic power.

I think given that US has named China as a competition, I don't think that Binance will be able to go public in US since they have a Chinese background and right now, US is a bit paranoid because they're behind when it comes to their competitors like China and USA. @Jawhead999 is right, Binance is going to need a lot of political power. I think Coinbase will dominate the biggest IPO for a little while.

[jackg]

LOL.. is that even possible? Binance is already traded in the cryptocurrency market (in the form of BNB). Now how can they convert these BNB tokens to shares in mainstream stock exchanges? That may not be impossible, but I suspect it will take a lot of paperwork and formalities. Also, it would e interesting to see in which exchange they will go for the IPO listing. Coinbase is a US-based company and therefore they went for the NASDAQ. However, Binance is based in Cayman Islands and there they don't have a stock exchange.

Bnb are essentially bonds, they'll still be bought the same ways - as in binance's statutory buyback - and will still be used for fee reductions (for as long as binance wants them to).

Their market cap is $75bn but I don't know if that's close to what they're worth.

Binance coin would PROBABLY be a better (short term) investment than a stock though as it'll keep pace with the cryptocurrency market better.

[jaysabi]

I was really impressed with the size of this IPO and I didn't expect a so much successful one by coinbase.

I'm not sure if I'd be impressed with that or not--do you think Coinbase is actually worth $86 billion?  I just took a look at their P/E, and it's 30.64.  That's probably low for a tech stock, but for a financial institution (which is basically what Coinbase is), it's high.  They've either got to keep growing their profits or their stock price is going to sink until that P/E is down to around 10-15, in my opinion.

On the other hand, they do have real earnings, which is more than can probably be said for a lot of companies on that infogram.  I don't recognize most of the names on it, but they sound like they're mostly tech companies and I'd bet that most of them don't even have any earnings yet.

I'd only invest in Coinbase if they started to pay a dividend, which most financial stocks do.  At least with that, there's some reason to hold the stock if it doesn't produce any capital gains.

Valuing coinbase as a financial institution is wrong. They're 100% a tech stock.  The same way you wouldn't value Square or PayPal as a financial institution because they also are tech stocks.  The current marketcap is 67 billion.  Personally, I'm not interested in that because a lot of future growth is already baked in and they're offering a commodity product (access to crypto) and have to defensive moat to protect the business.  Anyone can come in and beat them on price.  The risk-reward at this valuation isn't there for me.