Coinbase IPO is live: Here's what happened in the first 10 minutes

Shares of Coinbase opened for trading early Wednesday afternoon at $381, up more than 50% from its reference price of $250. Within a few minutes of trading, the stock moved above $400 per share and showed no signs of slowing momentum.

This analyst was right

Heading into Wednesday’s offering, MoffettNathanson analyst Lisa Ellis assigned a $600 price target on Coinbase’s stock along with a “Buy” rating. The analyst said in a note that the stock is “not for the faint of heart” and within minutes of trading, it was clear why the analyst was right given the stock’s rapid move higher.

The analyst explained on CNBC’s “The Exchange” segment on Tuesday that the main reason to buy Coinbase’s stock is the scarcity element. The analyst said that Coinbase is a “must-own stock” for anyone that wants exposure to tech and growth.

“If you are a believer in the long-term potential of cryptocurrencies, which we are, and that doesn’t just have to be bitcoin, it can be stablecoins, NFTs, ethereum — they are an agnostic way to play the future of cryptocurrency,” the analyst said. “And they would be the only large cap US-listed company with that type of exposure.”

At the time of publication, shares of Coinbase were trading at $425 per share and the analyst would likely agree it is still worth buying Coinbase’s stock even though it quickly gained more than 10% from the opening print.

Cramer agrees with a path to $600

Coinbase’s current price of $425 is far removed from its reference price of $250 but investors shouldn’t have put much faith into this price in the first place. CNBC’s Jim Cramer said Wednesday morning that the $250 reference price wasn’t meant to “reference anything” as it implies a loss of value for Coinbase’s stock relative to what it traded at in the private markets.

“I wouldn’t be surprised if it gets to $600,” Cramer said. “That’s Lisa Ellis’ target, she has been spot on with everything crypto.”

Cramer also said that the case for buying Coinbase’s stock at its current value is based in part on its direct exposure to the bitcoin universe and cryptocurrency space. Mutual funds and other investment firms that shied away from bitcoin outright should be “impressed” with what Coinbase CEO Brian Armstrong said on CNBC during his Wednesday morning interview.

“He sounds like a banker, he looks like a banker, the CFO [of Coinbase] is a banker,” Cramer said.