Coinbase made a United States stock market debut yesterday. While traders have shown great interest in this news, some of them could not have access to Coinbase stock trading due to their location. For non-Americans, many platforms plan to list Coinbase shares like eToro, CMC Markets, and RoboMarkets.
Coinbase went for a direct listing on Nasdaq, meaning the target price is not determined by an institution and the value of the stock can fluctuate a lot until it finds its intrinsic value.
eToro stated: “Because there are no underwriters, meaning no one is assuming the risk in connection to reselling the stock shares or performing stabilizing transactions, there is the potential for high volatility of the stock price immediately after its listing.”
CMC Markets also told that there is a high probability of over-valuation due to high demand among retail investors. These concerns seemed to be true as the Coinbase shares started their journey with a price of $410 and then the price decreased to $328 in two hours.
The decisions of eToro and CMC Markets followed the news coming from IG Group. The company announced that it will offer leverage trading of Coinbase shares. The number of listed shares is 14.85 million and they are classified as Class A common stock. Coinbase is currently one of the most popular cryptocurrency exchanges with 56 million verified users. However, the competition among the crypto exchanges is very tough and some of them offer cheaper trading services such as Binance, Kraken, Bithumb and so on.
RoboMarkets’ head of R Trader project, Kiryl Kirychenka, said: “Coinbase IPO is one of the most high-profile and coveted IPOs of 2021. One of the world’s largest cryptocurrency exchanges goes public via direct listing and many market participants, from individual investors to institutions, are ready to seize investment opportunities from day one.”