Analysts: The Coinbase Listing Will Give Crypto Full Legitimacy
A team of analysts with the firm D.A. Davidson suggests that the new Coinbase public listing is going to be an “Amazon” moment for the world of crypto.
Coinbase Is Going to Set a “Crypto Precedent”
For the most part, the Coinbase listing is a big deal for the digital asset space. The industry has longed for mainstream status and legitimacy for quite some time, but the fact remains that the space has been wrought with fraud and crime, and the volatility of most mainstream forms of crypto – such as bitcoin and Ethereum – have also got in the way.
Thus, over the years crypto has often been viewed as a rather speculative industry. Yes, one can easily and quickly get rich with crypto granted the circumstances are right, but it’s also possible to lose everything without warning, either through a massive price fall or through theft. It wasn’t until 2020 – a year in which fiat currencies began experiencing heavy inflation – that bitcoin saw itself leaving the land of speculation and being viewed by many investors as a hedge tool or store of wealth.
Now, however, things are beginning to look a little different for the asset. BTC has reached a new all-time high as of late, and many large firms – including Uber and General Motors – now say they are considering bitcoin payments for the future along with credit cards and fiat. Just think… You can buy a ride or a car with digital currency. Who knew this day would really come?
The analysts at D.A. Davidson say the real clincher for bitcoin and its altcoin cousins is likely to come with the new public listing from Coinbase. This will be the first major cryptocurrency exchange to be listed on the stock market, and many people are waiting with anticipation and wondering where the listing will take their favorite asset.
The analysts claim that right now, most people are simply “curious” about crypto, but that the listing will make digital assets a primary form of money in many individuals’ eyes. They announced in a statement:
With a big target on its back as a crypto wallet, (to date) Coinbase has been able to manage both government regulators as well as highly motivated hackers, while providing consumers with the experience they expect from a large financial institution.
Massive Jumps in Income
2020 proved to be a monster of a year for Coinbase in terms of revenue. The firm garnered as much as $1.28 billion, with much of that money coming from transaction fees alone. Goes to show you just how many people were trading crypto during the previous 12 months.
This $1.28 billion was a massive jump above the $553.7 million Coinbase attained during the 2019 calendar year. At press time, Coinbase is aiming for a stock share price of roughly $195 based on its projected revenue for 2021.
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