Coinbase, one of the most popular cryptocurrency exchanges in the world, has returned to a valuation last seen in 2018, prior to its initial public offering (IPO).
Coinbase returns to pre-IPO valuation despite strong growth
The prominent digital asset exchange now has a market capitalization of nearly $8 billion, despite the fact that the company has experienced significant growth in several areas since going public.
Specifically, Coinbase has seen its user base grow 4 times over, with monthly active users (MAUs) increasing by the same amount. Institutional volumes have also increased 13 times, demonstrating a strong adoption of Coinbase by larger organizations.
Coinbase returns to pre-IPO valuation as market cap drops below $8b – 1
Coinbase Stock Price 5-Year Chart. Source: Google.
It is not 100% clear why Coinbase has returned to a pre-IPO valuation, but it could be due to a combination of factors. One possibility is that the overall cryptocurrency market has undergone changes that have affected Coinbase’s valuation. Another possibility is that the company has faced internal challenges or external competition that have impacted its value.
While external competition may be a factor, It’s worth noting that Coinbase saw the downfall of FTX in 2022, another large exchange based in the United States. FTX’s failure should have cemented Coinbase’s position in the U.S. and potentially helped boost Coinbase’s market share.
Coinbase’s return to a 2018 pre-IPO valuation is a notable development and may be a consequence of the overall declining trust in centralized cryptocurrency exchanges. It will be interesting to see if the company can maintain its strong position in the highly competitive cryptocurrency exchange market.
Coinbase ended its IPO with a valuation of nearly $100 Billion
In April 2021, Coinbase Global made its debut on the public market with a valuation of nearly $100 billion. The exchange was able to capitalize on the rising popularity and values of virtual currencies such as bitcoin and ethereum. When it began trading, Coinbase’s shares were priced at $381 each, giving the company a worth of approximately $86 billion.
Back in March, prior to its IPO, Coinbase saw shares sell for up to $375 each in a private auction. This has led to speculation that the company could achieve an IPO valuation of around $100 billion.
Bloomberg reports that shares in Coinbase Global Inc. traded for a price between $350 and $375 per unit on the Nasdaq private auction market, giving the company a pre-IPO valuation of between $90-$100 billion. The trading reportedly ended with the share price at $350.