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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

CGTN America: Coinbase becomes first crypto IPO

Fox Business: Better to bet early on bitcoin, crypto: Ray Wang

Your POV

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