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Coinbase from YC to DPO

blog.ycombinator.com

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Re: Coinbase from YC to DPO

#461

Post by pjc50 »

rgifford wrote: post #440
whatever1 wrote: post #433

For reference, BP the number five global oil behemoth with 200B in revenues in 2020, has a market cap of 85B. Coinbase that sells pumped speculation for a fee has a market cap of 100B. Markets are efficient.

Literally compare COIN to any other market maker or financial institution. I would love to hear some justification here.

https://www.advratings.com/banking/worlds-top-banks-by-marke... : it's in the top 10-20.

Does anyone know what the value of assets under management by Coinbase is?

Re: Coinbase from YC to DPO

#462

Post by eloff »

xbmcuser wrote: post #402
eloff wrote: post #358

Earlier quoted context omitted.

Its not pedantic at all, it's the most interesting part of this IPO, because this is a new way to do IPOs.

its not interesting this is just another way stock markets are more about gambling instead of a way to raise capital. Previously you had startups doing their best to get sold to big companies instead of becoming profitable companies. Now they are going this route.

I don't know what your argument actually is, or what it has to do with what I said. You're just complaining under my comment because you objected to the word interesting.

Re: Coinbase from YC to DPO

#463

Post by jsiepkes »

abecedarius wrote: post #321
stormbeta wrote: post #190

Earlier quoted context omitted.

And this is exactly why I'm so skeptical of cryptocurrencies in general. There doesn't appear any viable way to make them work as currencies that doesn't either have horrendous externalities, simply replicate what existing currencies already do (often poorly and with many downsides), or often both. I don't think it's a coincidence that even a decade plus later, the primary use cases for crypto still seem to be grey/b…

> way ... that doesn't either have horrendous externalities The CO2 emission externality need have nothing to do with Bitcoin or any other proof-of-work chain. Tax carbon at whatever level makes sense and Bitcoin will adjust. (As I understand it, even currently Bitcoin mining mainly uses renewable energy, because it's cheaper; and it's trending cheaper still.) The externality is at the power plant , not the use. Bann…

> Tax carbon at whatever level makes sense and Bitcoin will adjust.

> The externality is at the power plant, not the use. Banning a use is like basing your server's security on client-side Javascript.

How would that work? Applying the same carbon tax on farming as on bitcoin? You always need to differentiate on use. Otherwise we could also just have a single income tax and be done with it. However taxing food as much as a Ferrari doesn't really make sense.

Re: Coinbase from YC to DPO

#464

Post by eloff »

Aunche wrote: post #431
eloff wrote: post #358

Earlier quoted context omitted.

Its not pedantic at all, it's the most interesting part of this IPO, because this is a new way to do IPOs.

Spotify and Slack went public through direct listings as well.

Yeah, I wonder if this will become a trend. I always thought the underwriting agency in an IPO was a form institutional gate keeping / toll booth on the road to going public.

Re: Coinbase from YC to DPO

#465

Post by splithalf »

whatever1 wrote: post #433

For reference, BP the number five global oil behemoth with 200B in revenues in 2020, has a market cap of 85B. Coinbase that sells pumped speculation for a fee has a market cap of 100B. Markets are efficient.

Your definition of efficient is anything but?

Re: Coinbase from YC to DPO

#466

Post by dylkil »

rgifford wrote: post #385

The NYSEs parent company Intercontinental Exchange Inc (ICE) is worth 66.40B. Today's IPO puts Coinbase at 100B+. The NYSE has been in operation since 1817. Coinbase has been in operation since 2012. The value of all crypto is Trading fees in the crypto-world are getting more competitive as more established players support crypto. I don't see a defensible market position here, let alone established track record or st…

>This is all feeling very dotcom bubble 2.0.

How many dotcom era companies had net income of $800mil in a single quarter?

Re: Coinbase from YC to DPO

#467

Post by arcticbull »

Tenoke wrote: post #427
arcticbull wrote: post #413

Earlier quoted context omitted.

No you cannot verify by trading lol, any more than you can verify the payout ratio of a slot machine at a rigged casino. They can synthesize opening and closing the orders, matching them internally, based off a feed from a legitimate exchange. Since they control everything they can easily ensure they don't accidentally get matched to an external order. This gives the illusion of liquidity.

>any more than you can verify the payout ratio of a slot machine at a rigged casino. If I use a slot machine a million times and I get higher payouts than at the casino next door, why should I consider it rigged? This is just nonsense. I am getting all the benefits of high liquidity and volume, my orders actually execute and I take advantage of the smaller spread. You can posit whatever you want, but the more likely…

They have not provided you with any reason to believe them. They won't even tell you where they're located lol.

This was a common growth hack for exchanges. When a new exchange launched they wanted to feign liquidity to establish a sense of credibility. They literally copied feeds from peer exchanges until they bootstrapped.

After all, why would anyone trade at an illiquid exchange? How do you get the first people onboard? You pretend you already have a lot of people onboard. More volume = more credibility.

The question you should ask yourself is if nobody is looking, why would they ever stop?

[note] by "growth hack" I mean literally a felony in any other context, but in the crypto space shrug who cares I guess. After all in which jurisdiction would you even sue them lol. Thanks to the "beauty of the blockchain" they won't even tell you where they're based.

Re: Coinbase from YC to DPO

#468

Post by s8s8discourse »

rednerrus wrote: post #443
rgifford wrote: post #440

Earlier quoted context omitted.

Literally compare COIN to any other market maker or financial institution. I would love to hear some justification here.

Worth $1B tops.

How do you justify your $100m valuation of a company that generated $700m of PROFIT in a single quarter?

Re: Coinbase from YC to DPO

#469

Post by SilasX »

whatever1 wrote: post #433

For reference, BP the number five global oil behemoth with 200B in revenues in 2020, has a market cap of 85B. Coinbase that sells pumped speculation for a fee has a market cap of 100B. Markets are efficient.

BP, being an oil extractor, might have higher expenses and so a comparison purely by revenues might provide less insight than desired.
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