Coinbase IPO “is an Amazon Moment for Cryptocurrencies” says D.A Davidson

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After the direct listing, Coinbase will be the 1st major cryptocurrency exchange to go public. Furthermore, analysts argued Coinbase’s large user base has positioned the exchange as a “leader” in the field.

“With a big target on its back as a crypto wallet, (to date) Coinbase has been able to manage both government regulators as well as highly motivated hackers while providing consumers with the experience they expect from a large financial institution,” the analysts added.

Coinbase nearly doubled its revenue

The company is also a broker, a fierce competitor to Grayscale, Gemini, and Kraken. Additionally, the exchange platform has millions of users who also use PayPal, Robinhood and Square added D.A. Davidson.

Based on 2021 revenue estimates, the firm has set a $195 price target. Last year, Coinbase’s revenue had hit $1.28 billion. More than 600 million compared to 2019 when the company generated 553.7 million according to a statement in Coinbase’s filings.

Following Bitcoin (BTC) rally in December, the exchange generated 96% of its net revenue from transactions. Bitcoin soared above new all-time highs since then, and the company highly profited from high transaction rates.