Understanding Coinbase
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Understanding Coinbase
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Re: Understanding Coinbase
#2The biggest threat to Coinbase are decentralized exchanges like Uniswap & Sushiswap. During the peak of DeFi summer, Uniswap handled more trading volume than Coinbase. [0]
Uniswap airdropped its token $UNI to all users on Sept 17, 2020. Uniswap is already at a $17 billion market cap. Coinbase is expected to IPO at ~$100 billion.
[0] https://www.theblockcrypto.com/data/decentralized-finance/de...
Re: Understanding Coinbase
#3The biggest threat to Coinbase are decentralized exchanges like Uniswap & Sushiswap. During the peak of DeFi summer, Uniswap handled more trading volume than Coinbase. [0] Uniswap airdropped its token $UNI to all users on Sept 17, 2020. Uniswap is already at a $17 billion market cap. Coinbase is expected to IPO at ~$100 billion. [0] https://www.theblockcrypto.com/data/decentralized-finance/de...
I would argue the biggest threat to coinbase is another crypto winter where volumes fall by 90%! And eventually the asset class becoming mature, so fees also fall by another 90%
Re: Understanding Coinbase
#4The biggest threat to Coinbase are decentralized exchanges like Uniswap & Sushiswap. During the peak of DeFi summer, Uniswap handled more trading volume than Coinbase. [0] Uniswap airdropped its token $UNI to all users on Sept 17, 2020. Uniswap is already at a $17 billion market cap. Coinbase is expected to IPO at ~$100 billion. [0] https://www.theblockcrypto.com/data/decentralized-finance/de...
Nah. High frequency trading on L1 is too expensive, especially long term as state grows.
Biggest threat is L2 exchanges. CEX-style speed and convenience and DEX-style non-custodiality. My money is on Nash since they went the legal path plus fiat on-ramping, i.e. actually competes with Coinbase's main source of profit.
Re: Understanding Coinbase
#5The biggest threat to Coinbase are decentralized exchanges like Uniswap & Sushiswap. During the peak of DeFi summer, Uniswap handled more trading volume than Coinbase. [0] Uniswap airdropped its token $UNI to all users on Sept 17, 2020. Uniswap is already at a $17 billion market cap. Coinbase is expected to IPO at ~$100 billion. [0] https://www.theblockcrypto.com/data/decentralized-finance/de...
I would argue the biggest threat to coinbase is another crypto winter where volumes fall by 90%! And eventually the asset class becoming mature, so fees also fall by another 90%
>And eventually the asset class becoming mature, so fees also fall by another 90%
Are we talking fees for coinbase pro, or the spot price offered by coinbase on their website? The prices for the former are already pretty low, with most exchanges charging around 0.2% on their lowest volume tier. The prices for the latter might be high, but I can totally imagine it staying high considering that forex rates at your local bank is equally as bad (around 1-2%). As a point of comparison for both, transferwise charges 0.4% for converting euro to usd.
Re: Understanding Coinbase
#6The biggest threat to Coinbase are decentralized exchanges like Uniswap & Sushiswap. During the peak of DeFi summer, Uniswap handled more trading volume than Coinbase. [0] Uniswap airdropped its token $UNI to all users on Sept 17, 2020. Uniswap is already at a $17 billion market cap. Coinbase is expected to IPO at ~$100 billion. [0] https://www.theblockcrypto.com/data/decentralized-finance/de...
Coinbase is more about turning non-crypto currencies into crypto currencies while UNI/SUSHI are more about turning crypto currencies into different crypto currencies.
In my POV, there's only two ways to get into crypto:
- Centralized exchanges with KYC
- Mining
Coinbase is a KYC centralized exchange and enables people to turn their bank account $$s into crypto. Uniswap and Sushiswap are only relevant once someone has crypto and needs to exchange between various tokens.
Re: Understanding Coinbase
#7Earlier quoted context omitted.
I would argue the biggest threat to coinbase is another crypto winter where volumes fall by 90%! And eventually the asset class becoming mature, so fees also fall by another 90%
>And eventually the asset class becoming mature, so fees also fall by another 90% Are we talking fees for coinbase pro, or the spot price offered by coinbase on their website? The prices for the former are already pretty low, with most exchanges charging around 0.2% on their lowest volume tier. The prices for the latter might be high, but I can totally imagine it staying high considering that forex rates at your loca…
The fees. 0.2% is not low compared to any mature market for trading. As a point of reference, Robinhood is free. Interactive Brokers will charge you a fraction of a cent in commissions, so on a $30 stocks that's about 0.01%
Re: Understanding Coinbase
#8The biggest threat to Coinbase are decentralized exchanges like Uniswap & Sushiswap. During the peak of DeFi summer, Uniswap handled more trading volume than Coinbase. [0] Uniswap airdropped its token $UNI to all users on Sept 17, 2020. Uniswap is already at a $17 billion market cap. Coinbase is expected to IPO at ~$100 billion. [0] https://www.theblockcrypto.com/data/decentralized-finance/de...
How's the liquidity/UX/fees on decentralized exchanges these days? Last I heard they were pretty lacking in those aspects.
Re: Understanding Coinbase
#9The biggest threat to Coinbase are decentralized exchanges like Uniswap & Sushiswap. During the peak of DeFi summer, Uniswap handled more trading volume than Coinbase. [0] Uniswap airdropped its token $UNI to all users on Sept 17, 2020. Uniswap is already at a $17 billion market cap. Coinbase is expected to IPO at ~$100 billion. [0] https://www.theblockcrypto.com/data/decentralized-finance/de...
The biggest threat is Bitcoin (and other popular cryptocurrencies) stop going up or experience a crash. Sure, there are true believers, but I suspect most people are just looking for an asset that's going up. It could be gold, Nikes, NFTs, Pokemon cards, or bitcoin.
Or stocks, I suppose, but at least they have revenue.
Re: Understanding Coinbase
#10The biggest threat to Coinbase are decentralized exchanges like Uniswap & Sushiswap. During the peak of DeFi summer, Uniswap handled more trading volume than Coinbase. [0] Uniswap airdropped its token $UNI to all users on Sept 17, 2020. Uniswap is already at a $17 billion market cap. Coinbase is expected to IPO at ~$100 billion. [0] https://www.theblockcrypto.com/data/decentralized-finance/de...
I would argue the biggest threat to coinbase is another crypto winter where volumes fall by 90%! And eventually the asset class becoming mature, so fees also fall by another 90%
Didn't Coinbase already survive that 2 years ago?