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?
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.
Except the internet made things easier. Trading stocks isn’t expensive or error prone. We’ll see.
Is the premise that every mom and pop will list shares in their company somewhere? The problem with that isn’t technological. It’s regulatory. And the regulations were created for good reasons.
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!
