4 ms·

I do ask myself if a 100B valuation on public listing is the start of mainstream crypto. Plus the direct listing is a giant middle finger to traditional bankin

I do ask myself if a 100B valuation on public listing is the start of mainstream crypto. Plus the direct listing is a giant middle finger to traditional banking and overall establishment, right? Like : Here are the new rules this new internet will be playing by. Direct, decentralized. Adapt or die?

globular-toast 6y ago
Coinbase play within the rules of the current establishment.
- nunchuck 6y ago
  And at the same time, they're influencing history. For better or worse, I guess we'll have to see.
- appplemac 6y ago
  Agreed, I personally view them as a bridge between the traditional brokerage model that more traditional investors can understand and use, and the crypto world that is looking to be separate from the traditional model.
- lucasverra 6y ago
  Direct listing is kinda novel, nah ?
  - Xixi 6y ago
    Slack and Spotify went the direct listing route, but indeed it’s pretty rare compared to IPOs.
  - thefounder 6y ago
    Not really
zrail 6y ago
They still hired Goldman and Citi to advise on the listing.
- mritchie712 6y ago
  yes, little middle finger at best.
purple_ferret 6y ago
crypto is already mainstream
Kye 6y ago
If history is any guide, the start will come from the ruins when this boom crashes. First movers almost always get swept up in and crushed under the early part of the adoption curve.
PragmaticPulp 6y ago
> Plus the direct listing is a giant middle finger to traditional banking and overall establishment, right? Despite the narrative, Bitcoin isn’t really competing with traditional banking at all. It's additive. It has become another asset for banks to sell to people, collecting relatively high exchange fees in both directions on the trade. This is more of an indication that Coinbase is now a traditional establishment banking institution. They’re also very centralized, given that they’re on the short list of exchanges and most users prefer to have Coinbase keep their coins instead of withdrawing to the Blockchain (for additional fees, which go to increasingly centralized miners). Coinbase took the risk by being the first big entrant, but other big banks would be more than happy to sell you Bitcoin (for a fee, naturally) if they didn’t think it posed a large legal risk to the rest of their business. Coinbase has the benefit of not having another banking business, so they can go all-in on it. Coinbase is the institution now. If crypto buy/sell becomes mainstream and the legal risk becomes smaller over time, other institutions will gladly sell you Bitcoin as part of their product lineup. If history is any indication, this will drive trading fees to $0, destroying Coinbase's current source of profit and unique position in the market. It will be interesting to see what they do to stay relevant as exchange fees dwindle.
- josu 6y ago
  >Despite the narrative, Bitcoin isn’t really competing with traditional banking at all. It's additive. It has become another asset for banks to sell to people, collecting relatively high exchange fees in both directions on the trade. This is certainly the current narrative, and I think that you do a very good job at illustrating what CB's role plays in all this. However, most people that made money in crypto are leaving their assets in crypto, they are not giving it to banks or exchanges for custody. Even if they want to hold dollars, they do so in DAI or USDC (indirect bank deposit ATM). So while this is still a very small threat to the banking industry at the moment, the seed has been planted, we are still very very early. The current banking industry has almost 200 years in the making, it won't be undone in 5.

globular-toast 6y ago

Coinbase play within the rules of the current establishment.

nunchuck 6y ago
And at the same time, they're influencing history. For better or worse, I guess we'll have to see.
appplemac 6y ago
Agreed, I personally view them as a bridge between the traditional brokerage model that more traditional investors can understand and use, and the crypto world that is looking to be separate from the traditional model.
lucasverra 6y ago
Direct listing is kinda novel, nah ?
- Xixi 6y ago
  Slack and Spotify went the direct listing route, but indeed it’s pretty rare compared to IPOs.
- thefounder 6y ago
  Not really

zrail 6y ago

They still hired Goldman and Citi to advise on the listing.

mritchie712 6y ago
yes, little middle finger at best.

purple_ferret 6y ago

crypto is already mainstream

Kye 6y ago

If history is any guide, the start will come from the ruins when this boom crashes. First movers almost always get swept up in and crushed under the early part of the adoption curve.

PragmaticPulp 6y ago

> Plus the direct listing is a giant middle finger to traditional banking and overall establishment, right? Despite the narrative, Bitcoin isn’t really competing with traditional banking at all. It's additive. It has become another asset for banks to sell to people, collecting relatively high exchange fees in both directions on the trade. This is more of an indication that Coinbase is now a traditional establishment banking institution. They’re also very centralized, given that they’re on the short list of exchanges and most users prefer to have Coinbase keep their coins instead of withdrawing to the Blockchain (for additional fees, which go to increasingly centralized miners). Coinbase took the risk by being the first big entrant, but other big banks would be more than happy to sell you Bitcoin (for a fee, naturally) if they didn’t think it posed a large legal risk to the rest of their business. Coinbase has the benefit of not having another banking business, so they can go all-in on it. Coinbase is the institution now. If crypto buy/sell becomes mainstream and the legal risk becomes smaller over time, other institutions will gladly sell you Bitcoin as part of their product lineup. If history is any indication, this will drive trading fees to $0, destroying Coinbase's current source of profit and unique position in the market. It will be interesting to see what they do to stay relevant as exchange fees dwindle.

josu 6y ago
>Despite the narrative, Bitcoin isn’t really competing with traditional banking at all. It's additive. It has become another asset for banks to sell to people, collecting relatively high exchange fees in both directions on the trade. This is certainly the current narrative, and I think that you do a very good job at illustrating what CB's role plays in all this. However, most people that made money in crypto are leaving their assets in crypto, they are not giving it to banks or exchanges for custody. Even if they want to hold dollars, they do so in DAI or USDC (indirect bank deposit ATM). So while this is still a very small threat to the banking industry at the moment, the seed has been planted, we are still very very early. The current banking industry has almost 200 years in the making, it won't be undone in 5.