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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…
The value of all crypto is over 2T now
Compare Coinbase to say a major exchange like the NYSE. Realize that crypto is a space that could be damaged by gov intervention at any time. Realize that there is very little lock in effect on these markets, and fees are becoming less and less over time. How does Coinbase ever manage to justify a valuation this high? 100B.... Ping me when the stock price is under $100.
A few arguments to justify the valuation: - Government intervention tends to benefit incumbents. - Coinbase employs a lot of lawyers [1]. - Coinbase invests a lot in lobbying [2]. - While fees are lowering for international exchanges, those who serve US customers are still able to get away with very high fees. - People are less sensitive to fees when the assets they are buying are very volatile. - NYSE serves brokers…
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Aren't very high fees antithetical to crypto, also centralization?
Antithetical? High fees are all but a feature :)
Compare Coinbase to say a major exchange like the NYSE. Realize that crypto is a space that could be damaged by gov intervention at any time. Realize that there is very little lock in effect on these markets, and fees are becoming less and less over time. How does Coinbase ever manage to justify a valuation this high? 100B.... Ping me when the stock price is under $100.
Most companies or banks offering crypto are not really built on it, they are just UI brokerages and buy the coins somewhere else. Same way they handle other assets. The trades are "free" because they take portion on off the spread. They buy a coin for $99 on the market and sell it to you for $100. It's easy to do but something Coinbase didn't want to do because it's not transparent and honest.
Ironically finance and banking institution are the worst at tech. Building on top of crypto is hard. Crypto trading is hard. Crypto security is hard. Financial instigation security is based on the fact that you can always fix things manually, call and fax in changes. That doesn't work for crypto.
And it's not like you can build all these capabilities and the legal framework over night or over months. Competition has been there from the very beginning but they are still the market leader in the western world.
Overall bullish on Coinbase in the long run. It's more of a platform than it is bank or an exchange.
Disclaimer: ex-Coinbase employee.
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…
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What difference does it make? Shares trading openly on the market is as explicit a valuation process as it gets.
Banks rip off companies in IPOs by underpricing the stock so their investors get a kickback. That's the least charitable way to write it, but it's somewhat close to the truth (the other part of the truth is that pricing is hard which is why we have markets). DPOs allow companies to list at a reference price without losing out on money - they can sell at the true price later. Banks naturally make up a bunch of reasons…
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Global wealth is $400T. All crypto currency combined is worth about ~$2T at this point. So to store 0.5% of the world's wealth, we are using 0.6% of the world's energy. Banks obviously don't use anywhere near this much energy. Bitcoin is estimated to use more energy than all other server farms put together. So we are using 0.6% of the world's energy to store 0.5% of the world's wealth. And Doesn't seem like the ideal…
I would include the energy needed to maintain trust in other currencies including efforts to prevent counterfeits, which I might argue includes some portion of a nation's militaristic might. Trust is an even more ambiguous, yet crucial aspect of maintaining a currency's value, tied up in the "order" or predictability of the society using the currency, which involves various legal systems and at the most basic level,…
I find it much more likely that military resources would be diverted to somewhere upstream of mining in the value chain. For example, if we continue relying on carbon-intensive proof-of-work blockchains, why wouldn't armies simply be diverted to secure energy resources?
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…
Bitcoin alone is worth over 1T, so your statement that all of crypto is worth less than 1T is a bit silly. The goal posts keep moving for crypto...next year it'll be that crypto is worth less than 5T, etc. I looked at the NYSE daily volumes...unless I'm reading them wrong, they did $800m USD worth of trades today. Coinbase did $5b USD worth of trades today. So if you compare a company that's almost 200 years olds vol…
https://www.nasdaqtrader.com/trader.aspx?id=FullVolumeSummar...
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…
Dotcom bubble was unique among other market crashes, because the main prediciton that fueled the dotcom bubble — that internet is the future and internet-based companies will be worth a lot of money — turned out to be completely right.