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Binance Adds Support For Coinbase Stock Token Hours Before NASDAQ Listing

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Coinbase’s IPO is a big moment for the entire cryptocurrency industry. Its decision to enter the market through a direct listing sparked enough curiosity and has generated high expectations.

Taking the opportunity, its counterpart, Binance has announced support for Coinbase Stock Token [COIN] on the 14th of April which will market the beginning of the COIN/BUSD trading pair. According to the official press release by Binance, the stock tokens are zero-commission digital tokens that are completely backed by a depository portfolio of underlying securities representing the outstanding tokens.

COIN holders would qualify for economic returns on the underlying shares, which includes dividends. This is the second such listing by Binance which had announced zero-commission, tradable stock tokens on the 13th of April starting with Tesla.

Coinbase happens to be one of the most valuable companies and the first-ever in the crypto industry to enter the US stock exchange.

Things To Expect After Coinbase Debut

The highly-anticipated development has triggered Bitcoin and the cryptocurrency industry to go for a record-breaking surge. The market expects to see dramatic, and potentially protracted, swings in the days to come as the space strives for mainstream adoption.

Coming back to Coinbase’s D-Day, Nasdaq had set a reference price for the firm at $250 per share.

If the shares in circulation, coupled with stock options and restricted shares, are taken into consideration, it can be found that the cryptocurrency exchange’s overall valuation will start a little above $65 billion. In addition, of the SF-based exchange hits the public market around its latest private market valuation of $100 billion, it would straight away be one of the 85 most valuable US companies.

It is safe to say that with a figure as huge as this, Coinbase not only has more users and revenues than many of the largest Wall Street biggies but also becomes the biggest US stock market entrant since ride-hailing business company Uber back in 2019.

Kraken’s Head of Growth Dan Held tweeted about about potential spillover effect into other crypto sectors following Coinbase’s big debut:

“Exchange valuations will likely be surging post-Coinbase IPO. That + general organic upswell of users could cause a spillover into other types of Crypto companies like wallets, custodians, etc.”

NFT: Coinbase CEO Is Set To Launch Collection Of Electronic Music Non-fungible Tokens

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The NFT realm is blessed with the embrace of institutions and high-profile celebrities alike which has helped the sector to steal the spotlight this bull season. In the latest development. Brian Armstrong, the CEO of the soon-to-be public crypto exchange Coinbase, is all set to release a collection of electronic music non-fungible tokens or NFTs that he created with DJ David Khanjian over the next few days.

According to his latest Twitter thread, Armstrong revealed that creating the songs as a “fun way” to learn digital audio workstation, Ableton Live. He went on to add,

“I listened to a lot of electronic music with no vocals as I was coding up the early versions of Coinbase, and always enjoyed David’s music. (no vocals because I couldn’t concentrate with other words in my head). Last year during COVID I decided I wanted to learn a little bit of electronic music composition as a hobby, and David was kind enough to take me under his wing and give me some free music lessons.”

The Coinbase exec also noted that all proceeds from the sale of the NFTs will be directed to David Khanjian. The three songs created by the CEO and the DJ will be released over the coming days as NFTs on Zora, the platform behind an Ethereum-based marketplace for tokenized product drops.

NFTs are surely having the moment

The latest development comes a little less than a week after two employees of the crypto exchange reportedly exchanged vows on the Ethereum blockchain. Peter Kacherginsky and Rebecca Rose, exchanged NFT rings with their wedding vows.

More Recently, American lifestyle brand Playboy announced teaming up with Winklevoss-owned NFT marketplace Nifty Gateway, to launch digital collectibles in the form of non-fungible tokens.

The space of non-fungible tokens have seek massive inflow of capital over the past few months. According to Dapp Radar’s February 2021 Industry Report, the sector has reached all-time high sales with the top three NFT marketplaces registering a combined trading volume of $342 million in February alone.

Coinbase Estimates $1.8B In First Quarter Revenue Ahead Of Equity Market Debut

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US cryptocurrency exchange, Coinbase revealed amassing a revenue of $1.8 billion in just the first quarter of 2021. According to the preliminary report, the platform estimated to report net income somewhere close to $730 million and $800 million on revenue of $1.8 billion in contrast to a dwarf of just $190.6 million revenue from the same time last year.

In fact, the first quarter financial have surpassed for all of 2020 when the company earned $322 million on revenue of $1.3 billion. In short, Coinbase did more revenue in the first quarter of this year than in all of 2020. With this, the latest revenue surged by more than nine-fold from a year earlier. This news comes a week prior to the cryptocurrency exchange’s public listing on the Nasdaq under the ticker COIN.

In the second quarter of 2021, Coinbase expects nearly $35 million of one-time expenses related to its direct listing. The company revealed that it intends to “augment” historically strong organic growth with customer acquisition and engagement by meaningfully increasing its investment in sales and marketing.

What drove Coinbase’s earnings and revenues?

Coinbase’s fortunes are tied closely to the swings of the crypto market and hence the meteoric rise of Bitcoin to $60,000 is what led the first-quarter revenue to climb to a record high. While the world’s largest crypto-asset was up by more than 700% over the past year, Ethereum raked in gains of more than 1000% around the same time frame.

This, in turn, catapulted the collective market cap to hit an astonishing $2 trillion and this amplification of the manic rally is what hellped the exchange to profit handsomely.

Coinbase also said,

“We expect meaningful growth in 2021 driven by transaction and custody revenue given the increased institutional interest in the crypto asset class”

According to reports, the company said that it has 56 million verified users which is 4x more than Robinhood. Meanwhile, the monthly active users on the platform has increased to over 6 million, thanks to the bull market. The figure surged from 1.3 million in the first quarter.

Coinbase Amasses Green Signal From SEC For Direct Listing

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Cryptocurrencies have been garnering a lot of attention across the globe. Exchanges like Coinbase, Binance, Bitfinex, and several others have been trying to keep up with the ongoing demand in the existing market.

Amidst this increase in the demand for crypto, prominent San Francisco-based exchange, Coinbase revealed that it was going public with a direct listing. More recently, the exchange announced that it had managed to secure permission from the Securities and Exchange Commission [SEC] of the United States and is all set to make a debut on the Nasdaq Global Select Market in the coming week.

Coinbase was subject to a lot of commotion following the constant glitches in its platform, particularly during peak volatility periods. Despite this, the platform took a plunge into going public. While the platform initially revealed that it would go public with an initial public offering [IPO], it then decided to do a direct listing.

Coinbase Scheduled To Go Public On April 14

In a recent blog post, the cryptocurrency exchange revealed that the SEC had given the platform an all-clear for the registration statement on Form S-1 with regard to its direct listing. The platform is all set to start trading its Class A common stock under the ticker symbol “COIN” on the  Nasdaq Global Select Market. Users would be able to do so starting from 14 April 2021.

The announcement read,

“Coinbase Global, Inc., today announced that its registration statement on Form S-1, as filed with the Securities and Exchange Commission (the “SEC”), relating to a proposed public direct listing of its Class A common stock was declared effective by the SEC on April 1, 2021.”

Additionally, a couple of weeks ago, the exchange went on to publish its financial results for 2020. While this was mandatory following the S-1 regulatory filing required to go public, it was revealed that the platform had bagged profits of over $322 million last year.

Cardano [ADA] Slids To 5th Spot After Fresh Losses

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Cardano [ADA] is no longer the third-largest cryptocurrency by market cap. Following the weekend correction, ADA fell to fifth spot underlining a bearish presence in the market despite a rather stellar performance over the past couple of weeks.

The crypto asset has raked significant profit owing to several milestones that the underlying blockchain network achieved. The recent Coinbase listing significantly pushed its price up even as the positive trend was short-lived with its weekly gains decreasing below 11%.

Cardano [ADA] was valued at $1.20, after a depreciation of 5.39% over the last 24-hours. At the time of writing, the crypto-asset recorded a market cap of $38.4 billion and a 24-hour trading volume of $4.67 billion.

Cardano [ADA] Daily Chart:

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ADA fell after oscillating between an ascending channel on the daily chart. The token initiated a fresh climb shortly before turning down after a local top formation. Its value has not slipped under its immediate support and could potentially consolidate in days to come.

As the volatility took a breather, the moving averages continued to project a bullish macro outlook.

ADA’s Technicals Look Bleak

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ADA has outperformed several assets over the last year. This has reflected in its price action and its position on the cryptocurrency ladder. However, the MACD has failed to flip on the positive side after sustaining yet another bearish crossover in less than a week. This evidenced a weak buying demand in the coin marker.

The red closing bar after successive green bars on the index of the Awesome Oscillator also showed a shift in momentum towards the selling side.

The RSI moved south after being turned down from the overbought zone. Even as it held its fort above the 50-median line, it depicted a bearish divergence by forming lower high that corresponded to a higher highs on the price side.

If the Cardano bulls fail to defend its price, bears could potentially move the price towards its immediate support levels of $1.02 and $$0.844 while its resistance remained unbreached at $1.29 and $1.38 respectively.

Cardano [ADA] Becomes 3rd Largest Crypto After Coinbase Support

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One of the world’s largest cryptocurrency exchanges, Coinbase Pro announced adding support for Cardano [ADA] on the 16th of March. Currently, the platform will roll out trading for four pairs including USD, BTC, EUR, and GBP, which will commence from the 18th of March if sufficient liquidity conditions are met.

The official press release also revealed that the order books will launch in three phases; post-only, limit-only, and full trading. Coinbase Pro further stated,

“If at any point one of the new order books does not meet our assessment for a healthy and orderly market, we may keep the book in one state for a longer period of time or suspend trading as per our Trading Rules.”

The San Francisco-based cryptocurrency giant also notified that it will only support withdrawals to Shelley addresses [i.e., addresses that start with addr1]. While full support for all Cardano addresses, including Byron and Shelley, will be launched shortly. However, support for the crypto-asset is not yet available on Coinbase.com or through its Consumer mobile apps.

Shortly after the announcement, IOHK CEO, Charles Hoskinson said,,

“I would like to be the first person to welcome Coinbase to the Cardano family. It has been a great relationship and the team that we work with for Rosetta support amongst other things has been absolutely exemplary and professional. I am so happy to see the announcement today. It has been a long road, a lot of very hard work went into that. It’s the beginning of, I believe, a great relationship which is going to extend throughout the years.”

Cardano’s [ADA] Price Skyrockets

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Over the past couple of months, Cardano [ADA] has climbed significantly in the crypto ladder owing to several notable milestones with respect to the underlying blockchain. However, the latest uptick came in response to the Coinbase Pro listing news, as ADA’s value surged by almost 24% over the past day.

It was trading at $1.26, at the time of writing. The crypto-asset rose to the third position in the leaderboard trailing behind Bitcoin and Ethereum respectively. According to the latest stats, it held a market cap of $40 billion and recorded a trading volume of $10.7 billion over the last 24-hours.

Coinbase Custody Accrued 11% of Collective Crypto Capitalization In 2020

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With nearly 3 million monthly active users and over 40 million verified users, Coinbase has undoubtedly witnessed a period of tremendous growth and innovation since its launch back in 2012.

So much so that the custody wing of the US-headquartered crypto exchange reportedly accounted for 11% of the entire cryptocurrency market capitalization at the end of 2020. This also means that approximately a whopping amount of $90 billion worth of assets are currently being held with Coinbase custody.

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This was revealed by the popular crypto-analytics platform, Messari in its latest report.

Coinbase Custody Figures Poised Even During Market Downturn

As noted in the above chart it can be observed that the value of assets custodied with Coinbase has been on a rise since the first quarter of the year.

Despite the damaging consequences and the market-wide repercussions of Black Thursday in March 2020, the figures remained unfazed and continued the uptrend.

However, it was not until the last quarter of the year which saw an astonishing rise in terms of the quantity of crypto-assets stored in custody on the platform. This can be attributed to the growing interest from retail and institutional investors.

It also found that Bitcoin [BTC] and Ether [ETH] made up for 83% of assets on the platform.

Moreover, Bitcoin alone accounted for nearly 70% of the total crypto-assets within Coinbase’s custody services in 2020, a figure that remained consistent even in the last quarter of 2019.

Ethereum holdings, on the other hand, rose from 9% in 2019 to 13% the next year.

Other crypto-assets on Coinbase represented 13% in 2020, with a decline of 2% from the previous year.

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The exchange giant saw a substantial rise in the custody of digital assets during the last quarter of 2020 which was accompanied by the rising prices of Bitcoin and other crypto-assets and the first phase of the 2020 bull run.

Besides, Messari’s report also revealed that the retail clients on the platform represented a staunching 95% of its trading revenue. This class of clients reportedly paid 30x more than the institutional cohort.

The latest development comes a week after Coinbase filed an S-1 report with the United States Securities and Exchange Commission [SEC], according to which the exchange’s direct revenue for 2020 was found to be at $1.1 billion.

Ethereum 2.0 Finds Shelter On Coinbase Even Before Its Launch

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After delaying several times, Ethereum 2.0 had finally made an entry into the crypto-verse. While only Phase zero of the network-wide upgrade made it to the industry, all the other phases are yet to be rolled out. Just as the network is prepping for its huge transition from proof-of-work [PoW] to proof-of-stake [PoS], prominent cryptocurrency exchange, Coinbase affirmed its support for Eth2, specifically by offering staking rewards.

In a recent blog post, the crypto platform announced the latest addition and joined several other exchanges in onboarding Ethereum 2.0.

Ethereum Can Get Coinbase Users Yield Up to 7.5%

Just a few months prior to the launch of Ethereum 2.0 aka Serenity, Coinbase had revealed that it would aid the staking rewards bit of Eth2. Coinbase seemed to be keeping its word as the exchange now offers a waitlist that can be joined by those who wish to stay on par with the potential rollout of the Ethereum 2.0 staking rewards.

In its most recent blog post, Coinbase pointed out that those holding ETH would be able to earn an annual staking reward of about 7.5% just by holding ETH. While this process can secure the ETH blockchain better, the exchange urged people to get in on the action. Those who make it to the waitlist would be offered an array of services once Ethereum 2.0 is rolled out.

Elaborating on the perks of joining the waitlist, the post further read,

“Once off the waitlist, there are no minimum amounts required to stake, and customers can convert, stake, and earn rewards on a portion of Ethereum instead of their entire balance. They will also be able to see their rewards add up in real-time through the lifetime rewards ticker in the Coinbase app or on Coinbase.com.”

As of now, the crypto exchange offers the staking rewards service to Cosmos as well as Tezos, ETH seems to be the latest in the list.

This feature is available for everyone except for those residing in New York.

Coinbase Makes Things Official With Its Direct Listing Announcement

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Coinbase endured an array of struggles in 2020. While Bitcoin turned multiple heads with its price change throughout last year, Coinbase, however, failed to keep up with the increased volatility as well as demand for the king coin and the other cryptocurrencies. Despite this setback, the crypto exchange managed to make it big with an array of acquisitions over the last month. Its recent announcement of going public was another add on for the exchange. While it was rumored that the crypto platform intended to go forward with an initial public offering [IPO], Coinbase’s new announcement says another story.

Coinbase Dumps IPO Plan

The entire crypto market was seen back in action after a small setback. Bitcoin was seen heading towards $40K once again. Amidst this pump, Coinbase revealed that it was going to go forward with a direct listing.

In a recent press release, Coinbase pointed out that it intended on opting to become a publicly-traded company. The exchange wants to do so by the process of direct listing of its Class A common stock. This means that the exchange wouldn’t have the need for an underwriter to oversee the sale. The blog post further read,

“Such proposed listing is expected to be pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”). Coinbase Global, Inc. previously announced on December 17, 2020 that it had confidentially submitted a draft registration statement on Form S-1 with the SEC. The Form S-1 is expected to become effective after the SEC completes its review process, subject to market and other conditions.”

Choosing a direct listing instead of an IPO could also act as a barrier against share dilution. Previously, rumors pertaining to the crypto exchange going public with an IPO spearheaded by Goldman Sachs. However, the exchange decided to go with a direct listing,

Tidings about another prominent cryptocurrency exchange, Gemini going public as Coinbase is taking a leap towards the same.

Bitcoin reaches $29k ‘floor-price’; Where is the next rally headed?

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Bitcoin reached its new-all time high of $42,000 on the 8th of January. The exhilaration associated with the massive bullish was high and certain proponents expected the price to move above $55,000 by the end of Q1 2020. However, after its 2nd re-test at $40,000 on the 14th of January, BTC dropped all the way down below $30,000 over the past day. While the prices may have gone the $30k margin at press time, Bitcoin might be entertaining a radical shift in the market.

Bitcoin loses $36.5k and $33k resistance

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Source: Trading View

According to the analysis, BTC dropped down to $28,880, leading to a 31% drop since the new all-time high value. In doing so, Bitcoin failed to uphold its position over a couple of important support/resistance.

During the past week, BTC struggled to position itself above $36.5k, and over the past 48-hours, the asset has dropped below $33k as well. After dropping down to $29,000, many expected the price to attain another bullish rally, but it is far from certain as on-chain metrics indicated a different scenario.

Willy Woo suggested $29,000 as Bitcoin floor price

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Source: Twitter

Last week, popular on-chain analyst Willy Woo suggested that the reset for the Bitcoin SOPR chart is likely to be followed by a price correction that will shake out weak hands off the market. In terms of finding a bottom, Woo indicated that the worst-case scenario would entertain BTC at a ‘floor price’ of $29,000.

His prediction has held true at press time, but Woo added that even after the asset drops down to $29,000, Bitcoin will rally right back up. Capital injection from HODLers has been strong, considering it has been a Whale Cycle.

Is the bottom definitely in?

According to the CryptoQuant CEO, it might not be the case. In a recent Twitter thread, Ki-Young Ju brought attention to the current Coinbase Premium. The analyst believed that whenever BTC has breached a fundamental resistance like $20k or $30k in the past, huge spot inflows from high net individuals have been observed.

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Source: Twitter

Right now, the investors appeared to under a selling spree and there was not enough premium at press time. It is also important to consider that, Bitcoin’s longs and shorts contract have largely neutralized, indicating a drop in interest from the derivatives market.

Verdict

From a market structure prespective, for Bitcoin to maintain a bullish momentum, its consolidation above $31.5k-$32k would be essential in the next 48 hours. However, failure to do so would improve the possibility for another bearish leg down, as Bitcoin may retrace down to $25,000 in the charts.