Coinbase from YC to DPO • Hacker News Board

Re: Coinbase from YC to DPO

#341

Post by abecedarius » Wed, Apr 14, 2021, 7:27 PM UTC

skeeter2020 wrote: post #115

rawtxapp wrote: post #102

Earlier quoted context omitted.

Just put a carbon tax on everything that has environmental externalities, it's as simple as that, it doesn't make sense to target a specific industry, especially one that uses stranded/renewable energy.

broad-based consumption taxes are the best theoretical response, but politically no one is going to impose them at the levels needed to discourage consumption, and they almost always get perverted in their application with carve-outs and exemptions. Plus where does that money go? At best it's an inefficient recycling paradigm when what we really need is an at-source reduction in consumption in the first place.

> politically no one is going to impose them at the levels needed to discourage consumption

This seems like one of those Overton-window true-if-and-only-if-the-media-say-it's-true things, like the supposed taboo against vaccine challenge trials which was recently falsified in a poll.

> where does that money go?

To the low-income people who are supposed to be the insuperable political obstacle to carbon taxes in the first place?

Politics is hard, yes, but this Overton-window kind of reasoning just drags at any real solution to anything. It's not worth any allegiance.

Re: Coinbase from YC to DPO

#342

Post by smeej » Wed, Apr 14, 2021, 7:27 PM UTC

downrightmike wrote: post #150

ZeroCool2u wrote: post #131

Earlier quoted context omitted.

Just started! Immediately spiked to over $400 from the listing reference price of $250.

Privately it was going for 540 earlier this week

This is a claim that would need a citation.

There were no authorized private markets in the last week,and Coinbase's stock issuance documents forbid sales without company approval.

FTX was trading over $600 at one point, but that was a synthetic asset and based off of an inaccurate estimate of the share count. Was that what you were referring to?

Re: Coinbase from YC to DPO

#343

Post by pinkybanana » Wed, Apr 14, 2021, 7:29 PM UTC

janandonly wrote: post #340

maxlamb wrote: post #334

Earlier quoted context omitted.

He actually put in $300k, so his shares are worth around 2.4 billion now

Did he? If he simply bought bitcoins with his $300.000 in 2012 (average bitcoin price of $8) then his net worth now would be .... 37500 bitcoins or $2.362.500.000 ... 2 point 3 billion frigging dollars...

It is actually interesting thought pattern, which would be better investment? With owning private equity there is also lots of work involved I would guess, with BTC you just sit on it... Latter is of course very hard in volatile market, while PE you probably can't liquidate.

Re: Coinbase from YC to DPO

#344

Post by downrightmike » Wed, Apr 14, 2021, 7:29 PM UTC

smeej wrote: post #342

downrightmike wrote: post #150

Earlier quoted context omitted.

Privately it was going for 540 earlier this week

This is a claim that would need a citation. There were no authorized private markets in the last week,and Coinbase's stock issuance documents forbid sales without company approval. FTX was trading over $600 at one point, but that was a synthetic asset and based off of an inaccurate estimate of the share count. Was that what you were referring to?

Yes, you're right.

Re: Coinbase from YC to DPO

#345

Post by [deleted] » Wed, Apr 14, 2021, 7:30 PM UTC

AlchemistCamp wrote: post #156

This is pretty amazing. Gary Tan made a YT video about his experience backing them very early and getting a 6000x return: https://www.youtube.com/watch?v=x5YApjnTG10 It's remarkable that Brian Armstrong gave up what would have been very valuable options in Airbnb—the most valuable YC company at the time—to found a new company that surpassed it.

[deleted]

Re: Coinbase from YC to DPO

#346

Post by paulpauper » Wed, Apr 14, 2021, 7:30 PM UTC

pinkybanana wrote: post #324

AlchemistCamp wrote: post #156

This is pretty amazing. Gary Tan made a YT video about his experience backing them very early and getting a 6000x return: https://www.youtube.com/watch?v=x5YApjnTG10 It's remarkable that Brian Armstrong gave up what would have been very valuable options in Airbnb—the most valuable YC company at the time—to found a new company that surpassed it.

Airbnb market cap is at 105 billion and Coinbase is currently at 86. Personally I'm very sceptical that current valuation for Coinbase is justified. It is a great company for sure but there definitely arent similar network effects as with Airbnb. There's plenty of competition in the crypto exchange space.

also airbnb is not dependent on the value of a speculative asset. There will always be demand for rentals.

Re: Coinbase from YC to DPO

#347

Post by lpapez » Wed, Apr 14, 2021, 7:31 PM UTC

janandonly wrote: post #340

maxlamb wrote: post #334

Earlier quoted context omitted.

He actually put in $300k, so his shares are worth around 2.4 billion now

Did he? If he simply bought bitcoins with his $300.000 in 2012 (average bitcoin price of $8) then his net worth now would be .... 37500 bitcoins or $2.362.500.000 ... 2 point 3 billion frigging dollars...

In theory yes.

In practice, cashing out billions of dollars worth of stocks is easier than cashing out billions of dollars worth of crypto.

Re: Coinbase from YC to DPO

#348

Post by ttt333 » Wed, Apr 14, 2021, 7:32 PM UTC

ilyaeck wrote: post #301

bglusman wrote: post #278

It's a tiny bit pedantic, but the Coinbase offering today was not actually an IPO, I learned, but a DPO (Direct Public Offering). It was not a fundraising event for Coinbase, only a liquidity event for shareholders, and unlike an IPO no explicit valuation process occurred to select an offering price.

What difference does it make? Shares trading openly on the market is as explicit a valuation process as it gets.

Kinda. In a normal IPO the big banks will agree to underwrite (that is, buy from the company and then immediately sell to investors) all the shares at an initial "offering price", and this is agreed upon in writing a little bit before the launch day. I don't believe this happens in the direct listing format, it just starts floating with no underwriting process.

So there is a difference in structure, but to your point immediately after launch it does not really matter to the general investing public

Re: Coinbase from YC to DPO

#349

Post by sibeliuss » Wed, Apr 14, 2021, 7:33 PM UTC

jude- wrote: post #253

sibeliuss wrote: post #242

Earlier quoted context omitted.

Owning coins is a means of validating the network and appending to the blockchain, not producing new coins.

Try reading the paper: https://people.csail.mit.edu/nickolai/papers/gilad-algorand-... You have to own coins to produce blocks.

> If the means of coin production require owning coins, you have these problems that PoW does not have

Producing blocks != coin production

Re: Coinbase from YC to DPO

#350

Post by georgeecollins » Wed, Apr 14, 2021, 7:33 PM UTC

Does anyone know what percentage of their business is in Bitcoin vs Etherium vs other crypto currencies? I have not been able to find that out and I think it would be a helpful thing to know in terms of forecasting their business. Does anyone know how I can find that out?

Thank you anyone who can help.