This valuation is insane. $100 billion for a company that is doing approx $2 billion in annual revenues.
I know that investors are pricing in future earnings potential - but this valuation seems like drinking too much Kool Aid to me.
Competition will change Coinbase's future profitability. Coinbase cannot get away with charging such high commissions/fees for much longer. The entry barriers to setting up crypto exchanges aren't that high. There are plenty of opportunities for people to step with the single USP of lower fees/commissions than Coinbase.
I know that investors are pricing in future earnings potential - but this valuation seems like drinking too much Kool Aid to me.
Competition will change Coinbase's future profitability. Coinbase cannot get away with charging such high commissions/fees for much longer. The entry barriers to setting up crypto exchanges aren't that high. There are plenty of opportunities for people to step with the single USP of lower fees/commissions than Coinbase.