Coinbase IPO leaves bitcoin believers lamenting their breakthrough

Coinbase IPO leaves bitcoin believers lamenting their breakthrough

For all those bitcoin true believers who survived the crypto winter of 2017-2020 with their holdings intact, the listing of digital currency exchange service Coinbase must have felt a vindication.

Not only did its $75.9bn listing on Nasdaq mark the biggest cash-out in crypto history, many would say it unequivocally established digital currencies as a force to be reckoned with on Wall Street. For crypto boosters the world over, more simply, it marked the day they were finally proven right.

"It feels like a shift in legitimacy not just for Coinbase but the whole industry. Crypto has a shot at being a major force in the financial world,“ observed Coinbase's chief executive Brian Armstrong.

The group's valuation came hot on the heels of a stellar set of first-quarter earnings. The group posted revenues of $1.8bn for the period compared with $191m last year. It made net income of as much as $800m. That, the Street said, made it worthy of comparisons to the New York Stock Exchange's parent company ICE, which has a valuation of around $67bn.

A more objective analysis would note this is not a fair comparison. Yes, ICE posted revenues of $1.6bn in the first quarter of 2020, putting Coinbase well in the