Yahoo Finance Bitcoin and other cryptos leap as Coinbase bumper float could make it “more valuable than Goldman Sachs”
Bitcoin, Etherium and other cryptocurrencies leaped today in anticipation of Coinbase’s $65.3 billion float this afternoon with some pundits declaring it could soon be worth more than Goldman Sachs.
The eagerly anticipated Nasdaq listing of the cryptocurrency exchange is being priced at $250 a share and will instantly propel founders Brian Armstrong (ex-AirBnB) and Fred Ehrsam (ex-Goldman) into being multibillionaires.
Coinbase is the biggest crypto trading platform in the US and has arguably gained a reputation as being the safest to use due to its close cooperation with US regulators.
However, its float was delayed from March after financial watchdogs forced it to pay a $6.5 billion settlement over claims it was reporting false information over its transactions.
In a peculiarly symbiotic relationship, Bitcoin and other cryptos have been gaining recently partly because of the looming Coinbase IPO.
Bitcoin was up 3% at $64,549.28 and Etherium gained 9% to $2383.17
Analysts report that increased coverage of the company and its vast valuation is boosting the credibility of the currencies themselves and driving up interest from investors.
New York professor Scott Galloway has predicted Coinbase could surge in value to be worth more than Goldman Sachs, currently valued at $112 billion.
As his recent blog put it: “A reasonable question in the JPMorgan and Goldman board meetings: How the f*** did we/you let Coinbase happen?”
Some critics of Coinbase have pointed out that, in return for the additional feeling of security the company offers customers, it levies a higher fee than competitors.
That creates a danger that rivals will come in with similarly secure products and undercut it.
Robinhood of the US has already said it will be launching a rival crypto product.
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