Coinbase Nasdaq Listing... Will It Lead Bitcoin to the Mainstream?

Record High Surpassed, Over 80 Million Won Ahead of Listing in 4 Days
High Potential for 100 Trillion Won Valuation... Q1 Earnings Exceed Last Year's Sales
Expectations for Stable Cryptocurrency Supply... Possibility of Volatility Noted

[Asia Economy Reporter Gong Byung-sun] The representative cryptocurrency Bitcoin surpassed 80 million KRW ahead of the Nasdaq listing of Coinbase, the largest cryptocurrency exchange in the United States. While some opinions suggest that Coinbase's listing could serve as an opportunity to stabilize the volatility of the cryptocurrency market, there are also counterarguments that volatility may instead increase.

According to the domestic cryptocurrency exchange Upbit on the 14th, Bitcoin recorded 80,194,000 KRW at 5:16 PM on the 13th. This marks the first time in about three days since it hit an all-time high of 79.6 million KRW on the 10th that it surpassed 80 million KRW. At the beginning of this year, Bitcoin was hovering around 32 million KRW, but it has been on an upward trend and is now approaching 100 million KRW.

Exchange with a Corporate Value of 100 Trillion KRW to be Listed

The news of Coinbase's listing is interpreted as a positive factor pushing Bitcoin over 80 million KRW. Coinbase, which will be listed on Nasdaq on the 14th (local time), is the first among exchanges and is highly regarded for its potential. Last month, the U.S. economic media Bloomberg estimated the corporate value at about 101 trillion KRW based on Coinbase shares trading at $350 (approximately 390,000 KRW) per share in the Nasdaq over-the-counter market. The U.S. economic media CNBC also predicted that Coinbase's market capitalization would reach an astronomical scale.

The reason Coinbase is highly valued is due to its remarkable performance. According to the first-quarter earnings announced by Coinbase earlier this month, revenue reached $1.8 billion, surpassing last year's total revenue of $1.3 billion. The number of subscribers was 56 million as of the 6th of last month, and it increased by 13 million during the first quarter alone, establishing itself as the largest cryptocurrency exchange in the U.S. Although it suffered losses until 2019, it reversed its fortunes along with the cryptocurrency market boom.

Will Cryptocurrency Volatility Decrease?

Some experts expect that Coinbase's listing could reduce volatility in the cryptocurrency market. There is anticipation that the participation of institutional investors through Coinbase investments will increase the stability of supply and demand. Bloomberg also argued on the 12th that Coinbase's listing could ultimately reduce extreme volatility. However, institutional figures such as Jerome Powell, Chairman of the U.S. Federal Reserve, continue to express concerns and criticisms about cryptocurrency volatility.

On the other hand, there are also concerns that Coinbase could be swayed by cryptocurrency volatility. According to Coinbase's announced earnings, 96% of last year's revenue came from fees. If the cryptocurrency market falls into a slump, Coinbase's performance is inevitably affected. Cryptocurrency-related companies have already shown volatility with daily fluctuations of up to 30%. The stock price of MicroStrategy, which holds the most Bitcoin among private companies, was around $425 at the beginning of this year but surged to $1,312 on February 9. It tripled within a month. However, it dropped about 59% to $537 on March 5, within a month.

There are also claims that a bubble has already started to form in the cryptocurrency market around the time of Coinbase's listing. The Kimchi premium, which indicates the price gap of Bitcoin between domestic and overseas markets, exceeded 20% ahead of Coinbase's listing. This is because investors in Korea particularly flocked to the cryptocurrency market in anticipation of a definite positive factor.