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Coinbase had recently announce it was going to go public. That means launching their own stock for the business which pretty much it's capital gains would be from fees on orders buy and sell as well as the fees they take for the POS systems currently working.
To me any company that ends up going public turns to sh*t and it's because the focus is fully taken away from the customer and instead it's all about squeezing more and more profits out of the system to please investors.
So how much is Coinbases valuation IPO looking like?
A Staggering $100 Billion!
That's pretty much 10% of cryptos entire market cap right right. It means that nearly everything would of had to been traded and help within Coinbase right now.
It seriously makes me wonder how they got to this IPO valuation as it seems just unreal. For me I'd put the company at a rough estimate 10 billion max one tenth the size it's coming in at. You don't make that much money off fees and if you are there's something drastically wrong with the system!
The other reason this seems so off is the company was evaluated in 2018 at a meager $8 billion and again in January at 50 billion. So it doubled in value in half a year.
I mean I guess that could be a possibility due to the massive growth crypto has seen and the assets in which Coinbase most likely controls on it's wallets. It also accounts for roughly $3.2 billion in trading volume but that still to me when you look at coin market cap and the amount of volume in one day that only accounts for a very small amounts of the $133 billion that was just traded in the last 24 hours.
Something seems very off with this evaluation and makes me extremely skeptical for when they go public.
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I think they going to become bloated and shit too, but that allows for other exchanges to eat their lunch! I see the IPO has trying to capitalize on funds that want BTC exposure but can’t yet hold the asset so they think they can become a sort of stop gap ETF for Bitcoin the way mStr and sq have
I can for sure see that being the case. Competition is good though and Coinbase honestly is too big and has had it's fare share of "odd" issues in the past when markets rallied. Kind of reminds me of Robinhood when they shut down stocks because volatility is too high. Or when they didn't credit people for their hard fork tokens ah yes the history of Coinbase!
100 billion is really unrealistic numbers
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Not that there ISN'T a scam going on here, but is there a way to get that valuation through the regular IPO big bank shenanigans? I am guessing underwriters are adding premiums for:
Those are all kind of legit, although they don't get to the valuation. So, I think they are adding +++ for silly things like
Big money doesn't need to scam to cheat, right?
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Somethings is not good? hmmm... I smell something fishy in Coinbase...
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I feel uncomfortable and skeptics about this too , the numbers don’t add up
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Yeah if something smells off, don't buy don't buy!