Anyone buying COIN (Coinbase)?

Anyone snag this crazy IPO earlier today? And do you think it’s truly worth $86B??? :scream:

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I wanted to get in on the hype train! Got me 1 share. How about you?

Right now Coinbase is the top dog on the block. I’m sure competitors will come in and eat away some of those fees.

overpriced. but will watch for a good price for options when they start trading

In my experience Coinbase is not a vey good company to put your money with. Regardless of what assets you are trading, the company is somewhat untrusted by many. All you need to do is google them and you will see. Unfortunately people have lost large amounts of money from investing via there platform. Not worth the risk as there are so many bad reviews against them.

IS it good to use COIN(coinbase) stock?

Overpriced but may look at it after the dump

Will keep at eye on it

Do you have a price target? :open_mouth:

Coinbase has way too much competition. It’s not even the largest centralized exchange (CEX) with Binance having 10x more trading volume.

I can see their fees being whittled away by its competitors, which will put pressure on their profit margin, and have a negative effect on their share price.

Binance isn’t a US company though?

There is Binance US.

Coinbase actually doesn’t have a formal HQ and designates itself as a “decentralized company”. Same with Binance.

Hmm. Is Binance publicly traded though?

Nope, but buying some of their Binance Coin (BNB) is probably a better deal than buying some shares of Coinbase. :joy:

Coinbase’s business is really tied to the price/value of cryptocurrencies and the health of the overall crypto market.

When times are good, Coinbase will make money. But if we get another “crypto winter” like we had in 2018 and 2019, Coinbase’s business will take a hit.

Their estimated earnings for Q1 look impressive:

  • Revenuee estimated at $1.8 billion, an 842% increase from the same quarter last year.
  • Net income estimated to be between $730 million and $800 million, multiples higher than the net income of $31.9 million in Q1 of last year.

The problem is, that growth rate probably does NOT represent what shareholders will get going forward. Currently, we’re in the middle of a huge crypto bull run. Coinbase does have a ton of growth ahead of it, but we’re going to see a lot of that come in spurts like this past quarter.

In the short to medium term, Coinbase should be fine. Because it wins in the ease-of-use category, it has become the biggest crypto exchange in the United States. This should drive growth for some time.

But I doubt it can reproduce or sustain its recent growth rate, which would be negative for its share price.

Coinbase also has fierce competitors in the U.S., such as Kraken, which is the No. 2 exchange, and Gemini, owned by the allegedly original Facebook founders aka Winklevoss twins. Over time, I think both will pose more of a challenge, especially as more people move past the “beginner” stage.

And then there are the decentralized exchanges like Sushiswap and Uniswap. Right now, I think those are a bit too intimidating for the average crypo trader, but that could change in the future.

What are the chances we’ll get another crypto winter though?

I haven’t traded on this platform and have heard traders facing a lot of volatility challenges with this broker. Moreover, the fee is also very unclear. But, they do have around more than 30 cryptocurrencies to trade.

Wow wasn’t this a hilarious comment from me :laughing: