RE: Coinbase Global14 Apr 2021 20:47
Coinbase may double again to $200Bn but what is actaully is it making a profit on?
High Valuation Compared to Stock Exchanges
Coinbase should be worth less than its $100 billion, according to MarketWatch. How so? Its valuation “implies that its revenue will be 1.5 times the combined 2020 revenues of Nasdaq and NYSE parent, Intercontinental Exchange — two of the most established exchanges in the marketplace.”
Competition Could Drive Down Transaction Fee
Coinbase took in a transaction fee of 0.46% in the first quarter — that is 46 times higher than the fee charged by those two stock exchanges. Crypto trading rivals such as Gemini, Bitstamp, Kraken, Binance, and others, MarketWatch notes, could drive down transaction fees to zero — which would cut into Coinbase’s revenue.