Coinbase expands into IPO access amid valuation scrutiny

Coinbase is expanding its service offerings and facing scrutiny regarding its market valuation. The company has introduced a new feature within its mobile app that allows eligible US customers to participate directly in initial public offerings (IPOs). Through its subsidiary, Coinbase Capital Markets, users can request shares at IPO offering prices before regular trading begins. This service utilizes Apex Clearing Corporation for execution, clearing, and custody.

Separately, David Trainer, CEO of New Constructs, has criticized Coinbase’s projected $100 billion valuation as “ridiculously high.” Trainer suggests the company’s valuation should be closer to $18.9 billion, representing an 81% decrease. He cited risks such as increased competition from platforms like Binance and Kraken, which could lead to a “race-to-the-bottom” regarding transaction margins and fees.