Coinbase’s listing in the US sounds alarm for China

The digital currency world is entering a new phase with the closely watched listing of Coinbase – the largest US cryptocurrency exchange – on the NASDAQ on Thursday ( US time), as the milestone move is expected to draw the rapidly expanding crypto ecosystem to the US.

While China has banned initial coin offerings ( ICO) to fend off financial risks and focused on its own digital currency, it may need to step up efforts in the area to bolster its capabilities in blockchain and other underlying technologies of cryptocurrency, which are currently led by the US, observers noted.

Coinbase is set to go public on Wednesday through a direct listing, based on trading prices in the private market – an alternative to the usual type of IPO. Ahead of the listing, the NASDAQ Stock Market announced on Tuesday the reference price of Coinbase was set at $ 250 a share, which would value the company at up to $ 65.3 billion.

Some investors predicted that the valuation could top $ 100 billion after the listing, making it one of the 85 most valuable companies in the US, according to media reports.

The listing is also building on crypto bull momentum that has sent the market price higher in recent days. On Wednesday, Bitcoin rose to a record high of $ 64,000, up more than 5 percent, while the price of Ethereum set a record of $ 2,400, up over 10 percent.

“The listing of Coinbase… sends a signal that the crypto world is gaining recognition in the mainstream global financial industry,” Shentu Qingchun, CEO of Shenzhen- based blockchain company BankLedger, told the Global Times on Wednesday. “It will be the first major cryptocurrency company to go public.”

Industry observers predicted that more crypto exchanges and other blockchain- related projects will list in the US, spurring innovation and cementing the US’ leads in the crypto and blockchain sectors.

“The world- leading digital asset ventures, investment banks, consulting and media companies will gather in the US, ushering in another wave of financial revolution that spreads across the world,” Cao Yin, managing director of the Shanghai- based Digital Renaissance Foundation, told the Global Times.

Cao also pointed out the gap between China and the US in the non- fungible token ( NFT) sector, which is part of the Ethereum blockchain, with a unique digital ledger that is not interchangeable.