Whenever trading in crypto exchange Coinbase’s shares goes tomorrow that is real time the ticker COIN, market manufacturers are likely to need a measure for where they should begin trading.

That measure is known as the “reference cost” while the one for COIN are released during the close for the U.S. equities market by the equity change Nasdaq today. The price is usually found by Nasdaq consulting with the company’s economic advisers (in this situation Goldman Sachs) and is usually the price that the company last exchanged on private markets ($343.58 per share in Coinbase’s situation).

The reference cost will affect just how money that’s much 114,800 Class A shares that the company is selling to new investors within the providing will enhance the company’s treasury, stated James Friedman, senior fintech research analyst at Susquehanna International Group.

Should COIN trade below the guide price throughout the first couple of days of trading it would be considered a black attention for the exchange from a PR viewpoint, but Friedman stated most equity analysts will have their eyes on coinbase’s game that is long.

“There’s far more to your creation of general public equity than its day that is to begin,” Friedman said. “Square stock went right down to $8 soon after trading since they lost the Starbucks account … now they’re above $200.”