Pablo Soria de Lachica Analyzes the Implication of Coinbase IPO for Bitcoin and the Broader Cryptocurrency Market

When Coinbase became a publicly traded company in April 2021, the media hailed the direct listing on Nasdaq as a “pivotal,” “watershed,” “landmark,” and “historic” moment for the digital assets market. By that point, the San Francisco-based cryptocurrency exchange had become the largest sector player in the United States and one of the biggest platforms in the world. “For an industry that has struggled for over a decade to secure legitimacy and appeal to mainstream investors, the Coinbase stock market listing signaled the potential start of a new era,” says acclaimed forex broker Pablo Soria de Lachica. “After all, this is the company whose profound importance for the cryptocurrency ecosystem is reflected in the term the ‘Coin base effect,’ which denotes a surge in the price of a digital asset upon its inclusion in the trading roster of Coinbase and other major cryptocurrency exchanges.”

Pablo Soria de Lachica notes further, “The extreme volatility of the crypto market and the lack of meaningful regulatory oversight have so far kept digital assets on the sidelines, making them little more than a plaything for speculators. On the other hand, the tentative but growing interest of institutional investors and the emergence of crypto-related products – such asexchange-traded funds (ETFs), futures, and non-fungible tokens (NFTs) – are creating a momentum that Coinbase seems poised to build up. In a sign that the digital assets market aims to ascend to the next level, the company’s stock market listing valued it at $86 billion at the end of its first trading day, which eclipses the valuations of Nasdaq and Intercontinental Exchange Group, the parent company of the New York Stock Exchange.”

Among the most obvious and immediate implications of the Coinbase listing is the anticipated wave of initial public offerings (IPOs) from other cryptocurrency-related companies, Pablo Soria de Lachica says. Whether they choose the traditional IPO route or opt for a direct listing, as Coinbase did, this market debut is widely seen as paving the way for more crypto space operators to go public. Speaking to Fortune shortly after the listing, Santosh Rao, research head at merchant bank Manhattan Venture Partners, described the event as a “template that other companies will follow.” Rao told the publication, “I think you will see a lot more activity in the crypto space in terms of companies going public, use cases, regulators warming up to it.” The regulatory stamp of approval for its stock market debut and the fact that being a publicly traded company would entail closer scrutiny of its financial results are also expected to make Coinbase a key player in the campaign to legitimize digital assets and bolster investor confidence.

A day before the IPO, Perianne Boring, founder and president of the Chamber of Digital Commerce, offered an explanation for the excitement surrounding the Coinbase listing and its potential impact on the cryptocurrency market. In an interview for Bloomberg TV, she noted, “There is alot of pent-up demand for exposure to Bitcoin because thereare very fewapproved products that investors can buythrough their brokerage firms. Historically, financial advisors have notallowed their clients to invest indigital assetsdirectly, and then we also don’t have anycrypto exchange-traded productsin the markets in the US at all. Whatinvestors are doing to get exposure isthey have to investindirectly in the stocks of publiccompanies that either own cryptoor have operations in the crypto space. Coinbase represents the firstblue-chip – so public pure cryptocompany – that will be an approved way to havedirect exposureto Bitcoin. That’s really what’s drivingall of the excitement about tomorrow’sdirect listing.”

After graduating from Universidad Tecnologico de Mexico (UNITEC) with an MBA, Pablo Soria de Lachicaproceeded to specialize in international trading, which helped him become of the foremost forex experts in the world. In addition to using his vast experience to maximize outcomes for his clients, he also devotes a significant portion of his time to developing and publishing educational content, sharing his expertise and insights through webinars, newsletters, and blog posts. Pablo Soria de Lachica is currently collaborating with Kartoshka – a company advancing the latest technological applications insales, telemarketing, and customer support.

Pablo Soria de Lachica Comments on the Possibility of a New Financial Crisis due to Oil Collapse:

Pablo Soria de Lachica Shares Insights on the Longer-Term Impact of Current Oil Industry Shock on Energy Markets:

About the Author

Pablo Soria de Lachica
Pablo Soria de Lachica is an internationally acclaimed broker and Director of Business Development of Bforex, a renowned currency trading firm based in Panama City, with 18 offices spanning the globe, including locations in Brazil, Mexico, and Uruguay.