Unchained Unconfirmed: Coinbase's S-1: The Number That May Make the Exchange Nervous - Ep.215
Feb 26, 2021
Jeff Roberts, the executive editor at Decrypt and author of "King of Crypto," dives into the implications of Coinbase's S-1 filing for the crypto landscape. He shares insights on why institutional investors are drawn to Coinbase and how the company's 96% transaction fee revenue model presents vulnerabilities. Jeff also discusses the competitive threat posed by decentralized exchanges like Uniswap and projections for Coinbase’s stock performance post-listing. His analysis reveals the evolving dynamics within the crypto industry as traditional finance adapts.
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Coinbase's Financial Health
- Coinbase is financially thriving, with a $322 million profit, unlike other unicorns going public.
- Their institutional customer base has grown significantly, indicating strong potential.
Coinbase's Market Share
- Coinbase stores over $90 billion in crypto assets, representing 12% of the total market cap.
- This highlights their strong security, a key factor in attracting institutional clients.
Institutional Shift to Coinbase
- Institutional adoption of crypto is evident in Coinbase's growing institutional client base.
- Coinbase benefits twofold: transaction fees and custody business growth.
