Coinbase IPO: A Crypto Market Game Changer?

Coinbase is arguably one of the best-known and largest cryptocurrency exchanges in the world, along with Binance. Recently, there’s been a rumor about Coinbase preparing for an initial public offering (IPO) later this year or early next year.

Only a few years ago it was incredibly difficult to buy and sell cryptocurrencies. Exchanges were small, untrustworthy (no FDIC insurance and no reputation for security), and difficult to use.

But a lot has happened since the early years after Bitcoin’s introduction in 2009. We are now within a stone’s throw of being able to trade cryptocurrencies on the well-established brokerages such as TDAmeritrade and E*Trade.

Some of the smaller and newer brokerages, such as Robinhood, already are a one-stop shop for those who want to buy and sell stocks and cryptocurrencies. But it’s taking a little longer for some of the bigger brokerages to work out the details about how to trade and safely store cryptocurrencies. That’s because exchanges need to be able to offer the same level of protection for all investments, cryptocurrencies included.

An IPO is a huge event for a company as it moves from a private startup to a publicly traded company. It’s typically an indication that the company has significant expansion plans, which is a positive signal for both the company and the cryptocurrency market.

Coinbase could be the first crypto exchange to go public but it will very likely not be the last. The industry has been maturing and professional investment managers have shown greater interest this year in crypto investments.

It’s expensive and time consuming for a company’s managers to take a company public. Coinbase’s managers obviously believe the effort will be worthwhile. Other companies serving the crypto market will be watching this development very carefully since it will speak volumes about the general health of the crypto market.

Institutional investors will be watching how well Coinbase achieves its IPO since a successful launch would open the door further to crypto investments. Companies serving the crypto industry would realize the market could support additional IPOs.

There will be a lot riding on the success, or failure, of a Coinbase IPO. Coinbase knows this and its investment bankers know this. They will likely be looking to time the IPO around a significant positive event for the market to help ensure a successful launch.

In turn, a successful Coinbase IPO would also further legitimize the entire cryptocurrency market. Additional companies would look to follow, attracting even more investment money. Companies and cryptocurrencies would likely benefit greatly.  It’s just one more reason why all investors should be looking to place a small allocation percentage of their investments into cryptocurrencies.

Why You Are Not Rich: Financial Misconceptions That Hurt Your Bottom Line

Personal finance is rife with misconceptions, myths, and bad advice. For many, bad advice is why you are not rich. Following the wrong advice and making bad investment decisions can

Pesticide in Milk May Be a Risk Factor for Parkinson’s

Research published in Neurology analyzed the effects of heptachlor epoxide — a pesticide commonly used in milk until the 1980s — in association with the signs and symptoms of Parkinson’s.

5 Ways to Survive and Thrive On Social Security Alone

Getting older can be a very expensive in the United States. Unless you begin saving for retirement at a young age, life can get progressively expensive as you get older.

Scientists Say This Food May Help Colon Cancer

It turns out that eating a handful of nuts daily could effectively keep colon cancer from recurring after surgery. In fact, research, from Dana-Farber Cancer Institute in Boston, suggests that

Have More in Retirement by Being Tax-Smart

Many people start planning for retirement by focusing on one primary objective: saving enough money to retire comfortably when they are ready. Taxes are something that no one enjoys paying;

Just Retired? Look at These 7 Key Financial Moves

Are you all set to bid adieu to your full-time job in 2019? If you are just retired, there are a number of things you need to do to make

3 Plant Remedies For Anxiety

An anxiety disorder can range from social anxiety to outright panic attacks. Doctors will generally prescribe medications that work on the central nervous system — like lorazepam. They may also

6 Ways to Live Within Your Means

Living within your means is undoubtedly the most important step you can take to structure your life, achieve your financial goals, and secure your future. While living it might not

7 Reasons to Stop Using Soap

The beneficial reasons for using soap may be diminishing in the sense that commercial soap is produced with so many chemicals that it could cause more harm than good. Due

Add Cinnamon To This Every Morning

For those who love to regularly kick start their morning cup of coffee with cinnamon, you're in for some good news. And for those who don’t, here’s something to consider.

5 Simple Ways to Earn Quick Cash

If there is one thing we could all use in today’s tumultuous economic environment, it is free money. While no one will pay you for doing absolutely nothing, there are

5 Items You Should Never Pay for at a Car Dealership

The typical American may more than a couple of cars within one lifetime. However, car salespeople sell cars every day and use that experience for their financial gain. When you