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The chart here provides context: https://twitter.com/JohnStCapital/status/1362859527230672896 https://twitter.com/JohnStCapital/status/1362859527230672896 In

by runako 6y ago

The chart here provides context: https://twitter.com/JohnStCapital/status/1362859527230672896 https://twitter.com/JohnStCapital/status/1362859527230672896 In case the tweet is deleted, a summary. Coinbase is now being valued at over half the combined market value of the companies that collectively own most major global markets outside of China. Those markets trade everything from currencies to stocks and bonds to commodities. For scale of asset pools: The value of all Bitcoins ever mined just hit $1 trillion. The CME Group exchanges trade nearly 6x that daily. This funding values Coinbase ~50% higher than CME Group.

radicality 6y ago
Something similar that intrigued me recently is that Airbnb is valued at more than all the USA publicly listed hotel chains put together (Marriott etc)
- runako 6y ago
  In that case, the comparison is between a capital-efficient tech company and a real estate management company where capital is tied up in real estate around the world. If there's a similar distinction between the business models of Coinbase and e.g. CME Group, I have yet to hear it.
  - pgwhalen 6y ago
    > If there's a similar distinction between the business models of Coinbase and e.g. CME Group, I have yet to hear it. Traditional finance and crypto finance are often hard to compare, but here's a surface level comparison: Coinbase is an exchange, a brokerage, and a clearing house all wrapped into one. I'm not aware of entity in traditional finance that is all three, though plenty are two out of three (Robinhood is a brokerage and clearing house, CME is an exchange and clearing house).
- csomar 6y ago
  That's meaningless. For all we know, these companies could be buried in debt and thus have little value in their assets. The price is a prediction of future payouts (whether in dividends or value of the assets the company is holding).

by runako 6y ago

radicality 6y ago

Something similar that intrigued me recently is that Airbnb is valued at more than all the USA publicly listed hotel chains put together (Marriott etc)

runako 6y ago
In that case, the comparison is between a capital-efficient tech company and a real estate management company where capital is tied up in real estate around the world. If there's a similar distinction between the business models of Coinbase and e.g. CME Group, I have yet to hear it.
- pgwhalen 6y ago
  > If there's a similar distinction between the business models of Coinbase and e.g. CME Group, I have yet to hear it. Traditional finance and crypto finance are often hard to compare, but here's a surface level comparison: Coinbase is an exchange, a brokerage, and a clearing house all wrapped into one. I'm not aware of entity in traditional finance that is all three, though plenty are two out of three (Robinhood is a brokerage and clearing house, CME is an exchange and clearing house).
csomar 6y ago
That's meaningless. For all we know, these companies could be buried in debt and thus have little value in their assets. The price is a prediction of future payouts (whether in dividends or value of the assets the company is holding).