Coinbase Public Listing Will Decide Whether Crypto Is The Next FAANG

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Last Updated on 23 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Peter Thiel, the legendary founding member of the so-called PayPal mafia, recently did a podcast in which he admitted that Bitcoin long in 2021 was just as obvious as FAANG long in 2014.

Thiel said that it was Mad Money host Jim Cramer who had advised him to invest in 2014 in the tech growth stocks. That was two years after Facebook launched on the stock market in fact.

Advertentie.

Eager to see social media fail

Anyone that would have invested in Facebook at the moment of its IPO was reminded in the first year that it takes time for a stock to grow. The Mark Zuckerberg company did not have a very successful first year of trading back in 2012, dropping from $38 to $18.

Headlines around the world screamed that tech’s future was bleak as the eagerness to see social media fail was great within the MSM.

Of course, 9 years on and Facebook is trading at $273. Same story for Google, Apple, Amazon and Netflix. The important point is to get in early and HODL (as it is for Bitcoin itself apparently).

Zoom or Uber

With this knowledge in mind, Jehan Chu, partner with crypto advisory and investment firm Kenetic Capital, recently explained the importance of Coinbase’s upcoming IPO for the crypto market.

She said that Coinbase’s public listing:

Will be the true test of the public market’s appetite for the next Facebook and Twitter of technology.

Analyst site Motley Fool (don’t get fooled by the name, it is one of the best respected discussion forums on Wall Street) just last week analyzed Coinbase’s upcoming listing and stated:

That while we don’t know what CoinBase will be trading at once it reaches public markets in terms of valuation, Axios, alongside some private market information, has found that CoinBase was valued at over $100 billion on the private market. That would be incredibly large for people who don’t have quite a sense about what a $100 billion business looks like. We’re talking about a market capitalization that would be larger than businesses like Zoom or Uber. This would be and likely will be by no means a small direct listing.

In other words, if Coinbase’s listing is positive, investors might see crypto as the new FAANG (a trade that made you 6 times your earnings in the period 2014-2021) and Peter Thiel’s recent quote could just come true.

postmodernstudio / Depositphotos.com