After going back and forth for the past couple of months, I think I finally have a final decision on the Coinbase IPO. Don't be fooled, I flip flopped back and forth no more than two times just yesterday.
When the sale was announced it had been initially speculated that the price was going to be around $200 per share. Okay, maybe it was just me that was guessing that would be the price.
About a month ago now they had a private sale and the stocks went for somewhere around $350 per share. I had been looking at getting maybe two shares if I was lucky, so now the $400 that I had been looking at spending was suddenly $700.
In the mean time, crypto has been exploding (duh, we all know that), and the valuation of Coinbase has been increasing accordingly. Yesterday the It was announced that based on the valuation of Coinbase the stock price would likely be closer to $450 per share.
I was ready to go all in and I started an email thread with my broker. I told him when it goes on sale next week (April 14th I think) get me two shares and throw them in my Roth IRA.
Then I started second guessing myself again.
I may end up being totally crazy, but I have a feeling after the initial run up, we might see it drop to a lower price than the $440 or $450 that they are projecting. I am going to wait for that I think. Either it drops and I am able to pick some up at a cheaper price or it just continues to go up and up and up.
Since I was only going to buy two shares, I am not to heart broken about it. I got thinking if I was really keen on spending $1000 I would likely be better off pumping that into Hive, LEO, CUB, or any of the other major cryptos and I will likely do much better.
I have a lot of faith in Coinbase. I think they are going to continue to be successful, but right now, the cost of that success for me is just too rich for my blood.
On a separate note, when I contacted my broker, an interesting conversation came up. I sent him the article talking about the Coinbase sale going live on April 14th and these were his exact words:
Sounds interesting to say the least. How does a person keep track of their coins?
Did he really open that door? Even if it was only a crack, I threw it wide open and started what turned out to be a much longer conversation.
I mentioned the Coinbase app, I mentioned NFT's, I mentioned Hive. I was holding nothing back.
What is a NFT? I’ve seen the headlines but have no idea what they are talking about.
Alright! Let's dive deeper down this hole! You asked for it! I went on to talk about NFT's for about three sentences.
Okay, you just went way over my head. Thanks for the info.
And there it is... the written equivalent of that glazed over look people get when you try to talk to them about cryptocurrency and it becomes clear that they really weren't that interested in it.
It actually shocks me how little investors are willing to learn about cryptocurrency given how prevalent it is these days. I don't know if they just think it is too complicated or they still think it is a joke so they don't take it seriously.
My brother in law works for an accounting firm and they actually had a person come in and talk about blockchain and cryptocurrency to their employees and clients to help educate them. That is the kind of forward thinking that I wish more investment firms would employ.
Until then, I guess we just keep keeping the secret to ourselves (and the millions of users who are realizing the benefits of crypto every day)...
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