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0 pointsdd365y ago0 comments

Agree. What’s the upside? How can Coinbase be valued at nearly that of large banks that process orders of magnitude more transactions and can actually earn money on balances? NYSE and NASDAQ are surely not valued at anywhere close to $100b. Does that mean Coinbase can acquire them? Bubbles are bizarre.

EDIT: Yes, it is valued at more than ICE and NASDAQ combined with a fraction of the revenue and significant risk. Most optimistic outcome priced in at $100b. Is the benefit of *NoPOs” that there is no underwriter to push back on the valuation? Maybe you can get a few suckers at a super high price therefore you should?

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timr5y ago

> How can Coinbase be valued at nearly that of large banks that process orders of magnitude more transactions and can actually earn money on balances? NYSE and NASDAQ are surely not valued at anywhere close to $100b. Does that mean Coinbase can acquire them? Bubbles are bizarre.

I wonder how many folks here remember that AOL (yes, the dial-up folks who put CDs in magazines) acquired Time-Warner in 2000, thanks to the internet bubble. They even subordinated their brand to AOL:

https://www.nytimes.com/2018/06/15/business/dealbook/aol-tim...

By 2009, TimeWarner spun off AOL for a fraction of the original deal size.

kolinko5y ago

By „fraction” you mean a quarter of revenue - Coinbase having around 1B in revenue, Nasdaq having 4B in 2020.

Then, Coinbase grew 300% in the last year, Nasdaq just 33%.

It’s like asking how Amazon can be worth more than Barnes and Noble in 2004 (or what year that was).

dd36OP5y ago

Except Amazon had opportunity to move beyond books. Coinbase should be valued nearly as much as Wells Fargo because maybe it will become Wells Fargo?!? Coinbase is tied to crypto inflation. That bubble can keep going but it’s a fraction of the volumes of the large players and I don’t see any long-term competitive advantage if crypto actually becomes useful to daily commerce.

EDIT: And fraction was less than 1/10th of the combined entities. Again, where’s the upside? Are you saying this gets to tens of billions in revenue? Wells is at $80 billion and valued at $150 billion. Is Coinbase going to get to $80 billion in revenue? How?

kolinko5y ago

1/10 or 1/4 doesn’t really matter if they manage to keep up 300% growth for a year or two. And there is still a lot of room for growth.

As for where Coinbase can go - it can take the Wallstreet on in terms of trading securities (security tokens) and derivatives - the whole DeFi market which is what Internet was to publishing companies.

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quickthrower25y ago

And coinbase has no USP someone with $1b sets up a competing exchange no problem, and they are in the game for 1% of coinbase valuation. They just need to innovate in some dimension, let’s say customer service (see r/coinbase).

Lol coinspot let me send out my coins to a wallet no problem. No multi week delays!

wtf_is_up5y ago

Coinbase isn't going public via SPAC. SPACs are underwritten by the usual suspects... GS, CS, DB, MS, etc.

dd36OP5y ago

What’s this called? It’s not underwritten per the first page.

I’m not current on the nomenclature, apparently.

I’m calling it a NoPO for no public offering.

wtf_is_up5y ago

Direct listing

j / k navigate · click thread line to collapse

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timr5y ago

https://www.nytimes.com/2018/06/15/business/dealbook/aol-tim...

By 2009, TimeWarner spun off AOL for a fraction of the original deal size.

kolinko5y ago

By „fraction” you mean a quarter of revenue - Coinbase having around 1B in revenue, Nasdaq having 4B in 2020.

Then, Coinbase grew 300% in the last year, Nasdaq just 33%.

It’s like asking how Amazon can be worth more than Barnes and Noble in 2004 (or what year that was).

dd36OP5y ago

kolinko5y ago

1/10 or 1/4 doesn’t really matter if they manage to keep up 300% growth for a year or two. And there is still a lot of room for growth.

1 more reply

quickthrower25y ago

Lol coinspot let me send out my coins to a wallet no problem. No multi week delays!

wtf_is_up5y ago

Coinbase isn't going public via SPAC. SPACs are underwritten by the usual suspects... GS, CS, DB, MS, etc.

dd36OP5y ago

What’s this called? It’s not underwritten per the first page.

I’m not current on the nomenclature, apparently.

I’m calling it a NoPO for no public offering.

wtf_is_up5y ago

Direct listing

j / k navigate · click thread line to collapse