4 ms·
A few arguments to justify the valuation: - Government intervention tends to benefit incumbents. - Coinbase employs a lot of lawyers [1]. - Coinbase invests
by josu 6y ago
A few arguments to justify the valuation:
- Government intervention tends to benefit incumbents.
- Coinbase employs a lot of lawyers [1].
- Coinbase invests a lot in lobbying [2].
- While fees are lowering for international exchanges, those who serve US customers are still able to get away with very high fees.
- People are less sensitive to fees when the assets they are buying are very volatile.
- NYSE serves brokers, that then themselves serve the final clients. Coinbase is able to serve customers directly, thus it can keep all the fees for themselves.
[1] https://news.bloomberglaw.com/business-and-practice/coinbases-legal-hiring-spree-continues-despite-defections https://news.bloomberglaw.com/business-and-practice/coinbase...
[2] https://seekingalpha.com/news/3679495-square-fidelity-coinbase-start-cryptocurrency-lobbying-group https://seekingalpha.com/news/3679495-square-fidelity-coinba...
- rednerrus 6y agoAren't very high fees antithetical to crypto, also centralization?
- lovedswain 6y agoAntithetical? High fees are all but a feature :)
- spir 6y agoNot for long https://twitter.com/zksync/status/1382244366023004161 https://twitter.com/zksync/status/1382244366023004161
- koolba 6y agoThere is no way that Coinbase has a stronger lobbying base than the established financial players. They can get into this game, block it with tighter regs, and dig into their deep base of clients to offer similar products. I don’t see a moat here.
- josu 6y agoThe second largest donor to the Biden campaign was SBF, the CEO of FTX, another crypto exchange. The crypto ecosystem is spending a lot of money on lobbying. https://www.coindesk.com/cryptocurrency-ceo-donated-second-largest-amount-to-joe-bidens-campaign https://www.coindesk.com/cryptocurrency-ceo-donated-second-l...
- FqOD4xih7Uq6m9Z 6y agoEstablished financial players like AXA who invested in Blockstream which controls the development of BTC?
- tingletech 6y agoMeet Kevin also did an analysis https://www.youtube.com/watch?v=waTWaNqI23Y https://www.youtube.com/watch?v=waTWaNqI23Y