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Most investors in our generation invests in the long term future of a company. When valuing companies, “where a company is ‘potentially’ going to be has become more important than where it’s now”.
Contemporary investors are choosing to invest in a company’s stories and less in its fundamentals, so what?
I don’t like the fact that this is the reality of the market, but as a progressive investor, it is not my responsibility to dictate how the market should work. However, it’s my responsibility to understand how the market works and follow the flow.
In the last couple of years the market has been working increasingly in favor of cryptocurrencies.
Yeah, cryptocurrencies ‘supposedly’ don’t have intrinsic value and most of them are as valuable as a piece of sh*t.
And you probably hate cryptocurrencies, hundreds of established financial institutions hate them too and many governments around the world have banned the f*cking destroyer of FIAT currencies. Guess what?
Cryptocurrencies are going no where and their value/prominence will continue trending northwards.
Yesterday, I was preaching Bitcoin to a friend and I asked him “how is Gold more valuable than Iron? How is diamond more valuable than quartz?”, His simple answer was “I don’t know”. The “experts” can tell us that Gold is this than Iron and Diamond is that than Quartz, but the reality is that through time (history) “people” just agreed that Gold and Diamond have $xxx and $xxx value and that’s it.
Pick up a $100 note and just look at it for what it is: It’s paper, just paper. Why is that piece of paper worth the price of a Bose SoundSport Wireless Headphone? People just agreed that it is and that’s it.
Cryptocurrencies are being backed by many prominent institutions and influential investors. Recently, Tesla invested $1.5 billion (do note that it’s a B, BILLION) in Bitcoin and plans to accept the cryptocurrency as a payment method for it’s EVs. And CNN Business audaciously declared that Bitcoin is going mainstream. Elon Musk isn’t the only reason.
To hit the hammer on the nail, the value of cryptocurrencies will continue heading northwards, a lot of investors love cryptocurrencies and sentimentally tend to invest in the stories (future potential) of a company, how about investing in the IPO of the largest cryptocurrency exchange in the US?
Coinbase is the largest cryptocurrency exchange in the United States and it’s getting ready to go public in 2021.
Brief Company Profile: Coinbase
Coinbase is an online platform that allows merchants, consumers, and traders to transact with digital currency.
It allows its users to create their own bitcoin wallets and start buying or selling bitcoins by connecting with their bank accounts.
In addition, it provides a series of merchant payment processing systems and tools that support many highly-trafficked websites on the internet.
Coinbase was launched in 2012 with a mission to create an open financial system for the world. It is operated from San Francisco, California.
When is Coinbase going Public?
On Jan. 28, 2021, Coinbase announced its plans to go public via a direct listing. On the 1st of April, the company disclosed that it will share it’s Q1 financial results on the 6th of April and subsequently, it’ll start trading as a public company on the 14th of April via a direct listing.
Coinbase pre-IPO contracts
On Dec. 22, 2020, cryptocurrency derivatives exchange FTX listed futures contracts of Coinbase ahead of its initial public offering (IPO) as CBSE and it started trading around $240.
The contracts will expire at the end of Coinbase’s first trading day at a stock exchange, or on June 1, 2022. CBSE balances will convert into the equivalent amount of Coinbase Fractional Stock tokens at the end of Coinbase’s first public trading day and If the listing does not occur by the date, CBSE balances will cash-expire to US$32, in line with an 8 billion dollar valuation.
At the time of writing, it trades around $350 (quite a promising growth) and it’s quite unfortunate that pre-IPO contracts are not available to U.S. residents.
Do note: I’ve a Coinbase trading account… And I love the platform … Their non-Pro fees are kind of high (great for their bottom line, anyways) …
And there you have it; My #1 IPO Stock for 2021. Coinbase.
Henry John is a Stock Portfolio Manager that focuses on companies developing cutting-edge technologies.
Keeping track of cutting-edge techs, companies and stocks is what I do almost everyday. And I love it. Whether it’s artificial intelligence, 5g, or autonomous vehicles; I’m all in.
I’m a self-made millionaire who made most of his money investing in technology companies while working in finance.
Yes! I owe it all to tech and finance.