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The valuation of Coinbase IPO is “ridiculous” according to this report – what do you all think?

[https://www.marketwatch.com/story/should-you-buy-coinbase-the-valuation-is-ridiculous-11618254467](https://www.marketwatch.com/story/should-you-buy-coinbase-the-valuation-is-ridiculous-11618254467)

TLDR;

* 66% of Americans are not interested in Crypto, 18% have no idea what it is
* Spread charges and fees combined are “unsustainably high” and will not be able to maintain its competitive edge for very long, since the fees will put people off
* Other exchanges will likely reduce their fees or charge nothing in order to compete with Coinbase in the future (similar to the popularity of fiat trading platforms having zero fees)
* Their marketing costs will likely go up in order to maintain their position as the leading exchange, which will eat into their profit margins
* To meet the $100 billion valuation, Coinbase must grow revenue by 50% compounded annually for 7 years in a row ([which sounds pretty fucking hard to do](https://www.nasdaq.com/glossary/c/compound-annual-growth-rate), and is not the same thing as earning 50% every year)
* Coinbase is calculated to be worth $18.9 billion, 81% less than the expected value
* All public investors combined can expect to gain no more than 17% of voting power for corporate decisions
* Almost complete and total reliance on BTC and ETH to sustain the platform – if they drop in value and people don’t invest in other cryptos instead, they are pretty screwed



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11 Comments

  1. Gosh, I just can’t imagine what their customer service department will be like after this IPO. I am sure they will have auto respond bots to say “We will get back with you in 2026, please keep investing in on our platform ” lol

  2. In markets like this meeting quarterly or yearly numbers are not as significant anymore as the growth of crypto market shadows the revenue number and retail customers positively associating that growth with growth of the company.

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