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.

Bitcoin and Gold Slaying Stocks: Why Not Own Both?

The Bitcoin vs. gold battle rages on as the two are best-performing assets of 2020. The price of gold is up 26% this year, while Bitcoin has soared 87% —

Companies Pile On Debt. Big Headaches Later for Investors?

How have companies handled the cash crunch during this pandemic? I came across an insightful in-depth research report this past week that had a few interesting charts on this. See

Potential Options Payoff in Post-Covid China Rebound

The Chinese economy is starting to show signs that it is rebounding better than other economies around the world. China was the first country that had to battle the COVID-19

Retirement Income Tip: Buy High-Yielding Dividend Stocks

Imagine a scenario where you can make money while you sleep. Sounds too good to be true, right? Enter high-yielding dividend stocks. Now, there are lots of stocks in the

Beat the S&P 500 with These Specific Stocks

Today I'm going to briefly discuss a major error that most stock market participants make on a regular basis and ways in which you can substantially increase your stock returns.

Iaccino: Dollar Down, Stocks Higher, Plus PayPal Meets Bitcoin

A renewal of federal stimulus on top of monetary stimulus after the election is likely to support the stock market, says Bob Iaccino, editor of the Stock Think Tank. The

investor or pay off debt

Invest or Pay Off Debt? In a Pandemic, I’m a Stock Buyer

If you were to tell someone that you were putting any extra cash you had into the market instead of paying off debt, they might think you have lost your

bitcoin mass adoption

Bitcoin Mass Adoption Can’t Be Far Off — That Means Surging Demand

When you look at past technological developments — from the 19th century industrial revolution through the introduction of the telephone, personal computers, Internet, and smartphones — there is a typical

stocks overvalued

Is the Stock Market Overvalued? Not By This Measure

You many have heard the term “TINA” mentioned in various financial and investment commentaries in recent months. This is an acronym for “There is No Alternative.” It is built around a

clx options

Options Play: Take Advantage of Bearish Sentiment On Clorox (CLX)

We are in the middle of a global pandemic and one of the best weapons against the virus is cleaning surfaces with bleach. If we were to ask 100 people

This Predicts Bitcoin Price — and It’s Uncannily Accurate

Many investment advisors are beginning to recommend some exposure to Bitcoin (BTC) and some alternative (alt) coins, such as Ethereum (ETH). But the biggest hurdle for many analysts is how

retail spending

Retail Spending Shoots Higher, Suggesting Stocks Will Follow

Data released today by the U.S. Department of Commerce indicate that sales at U.S. retail stores rose sharply during September. Specifically, that data indicate that U.S. retail stores rose during