Shares of Coinbase (COIN) will begin trading on Wednesday through a direct initial public offering (IPO). This day will mark Coinbase’s debut on the NASDAQ stock market.
Coinbase, which was founded in 2012 as a platform to trade bitcoin, has over 40 million users and serves over 6,500 institutional customers, according to the company’s prospectus filing.
The IPO was delayed when the company was hit with an investigation by Commodity Futures Trading Commission, in which the company agreed to pay $6.5 million in settlement due to misleading trading volume.
Is it smart to buy Coinbase on IPO day?
Some investors are wondering if it would be smart to buy on IPO day due to hype around Bitcoin (BTC), XRP (XRP), Ethereum (ETH) and other cryptocurrencies. I would recommend not buying on IPO day and wait a few weeks.
Another thing you should note is that Coinbase users are experiencing a lot of problems with the platform, users are losing their money, balances are disappearing, Coinbase customer support is almost non-existent with months of waiting time for a simple ticket response.
You can read all about these problems on the Coinbase subreddit. This also seems to be going on with most cryptocurrency exchanges.