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COIN stock has risen since making its Nasdaq debut on Wednesday.
Coinbase (COIN) shares opened at $381 on Wednesday, substantially higher than its pre-listing reference price of $250, indicating increased institutional demand for the crypto-focused market.
Coinbase’s market capitalisation now stands at $99.6 billion on a fully diluted basis, thanks to the $381 price. The stock reached a high of $429.54, representing a 71.8 percent increase over the initial reference price. According to Yahoo Finance info, it was last seen traded about $350, having gained 43 percent.
Meanwhile, the technology-focused Nasdaq Composite Index, which listed COIN, was down 0.6% on Wednesday.
As Nasdaq announced on Tuesday, Coinbase’s reference price does not represent its offering price, implying that no shares were bought or sold at the previously quoted $250 price point. The exchange clarified, “The opening public price will be determined based on buy and sell orders in the opening auction on Nasdaq.”
Coinbase’s first day of trading was supposed to be volatile, as market discovery and pent-up interest prompted investors to bid up the price dramatically soon after it went public. Investors got a glimpse of the uncertainty in the futures sector, where the “pre-IPO” price of COIN reached a peak of $640 before plummeting to $420 on FTX, a leading crypto derivatives exchange.
The public listing of Coinbase is regarded as a “watershed” moment in the cryptocurrency industry. COIN stock, according to Ben Lilly, co-founder of Jarvis Labs, would offer a “bridge” to legacy markets that are still wary of investing in digital assets. This year has seen the valuation of many crypto-proxy securities skyrocket, mostly in lockstep with Bitcoin (BTC) and other digital currencies.