News Analysis: Digital Giant Coinbase Breaks Past $100 Billion Valuation In Direct Listing
Coinbase Debut Legitimizes Cryptocurrency Trading
Coinbase is the NASDAQ of Cryptocurrencies. They generate 96% of revenue from transaction fees and earned more in Q1 than all of 2020. The digital giant debuted as a profitable company on April 14th, 2021. At the time of direct listing, Coinbase shares opened at $381 and almost broke $429.54 throughout a volatile trading day.
As the leading cryptocurrency exchange, San Francisco based Coinbase has benefited from the rapid ascent of Bitcoin, Ethereum. Coinbase dominates US based cryptocurrency exchanges with a 24-hour trading volume of $3.2 billion.
Coinbase’s market value of $86 billion exceeds the value of Nasdaq ($26 billion) and ICE, the owner of the N.Y.S.E., is valued ($67 billion). For reference, this market valuation may exceed Goldman Sachs's at $111 billion.
Status: Public On April 14th, 2021
Leadership: Brian Armstrong, CEO & Co-Founder; Fred Ehrsam, Co-Founder
Investment relationship - NO
Individual owned - NO
Family owned- NO
Company owned - NO
Network: 56 million customers, 2.8 million customers making transactions. Coinbase has built an app that democratizes access to cryptocurrencies.
Customer Control: With brokerages hesitant to trade cryptocurrencies, Coinbase disintermediates brokerages and goes direct to consumer. By aggregating access to cryptocurrencies, consumers have a single point of trade and digital wallet.
Data Supremacy: The cryptocurrency exchanges will monetize data by using analytics and insight on participant behavior to provide future products and services.
Digital Monetization: Transaction fees drive $1.8 billion in revenues for Q1 vs $1.14 billion in revenues for 2020, up 136% (YoY). As $2 trillion in cryptocurrencies grow to $10 trillion by 2025 (Constellation estimates), Coinbase will benefit from the trading volume and activity.
Growth Mindset: Coinbase continues to invest in technology. This nvestment in order book exchange (GDAX), brokerage, and custody technology will set it apart from competitors.
Other Media Coverage
Do you believe this is the beginning of cryptocurrencies? Will you buy the exchange (market) or the asset (cryptocurrency)? Better yet, pre-order the book and learn the secrets of the world beyond Digital Transformation, get my latest book Everybody Wants To Rule The World t
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