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.