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P/Es are irrelevant here I think. $COIN is a transaction-based business. Transactions are correlated with the price of BTCUSD. BTCUSD is down 50% in 6 months. T

by anonu 4y ago

P/Es are irrelevant here I think. $COIN is a transaction-based business. Transactions are correlated with the price of BTCUSD. BTCUSD is down 50% in 6 months. The r/wsb crowd and others just wont be as enthused to trade something that isn't going to the moon. Thus, transactions will continue to trend down and $COIN will suffer.

RyanShook 4y ago
Yep, I purchased COIN at IPO as a proxy for BTC and other crypto. Don’t expect it to recover until cryptocurrencies do, may be a while…
kolbe 4y ago
However, the spread they make on their transactions gets wider as price action is more volatile.
- sushid 4y ago
  Can you explain? A wider spread means less efficient markets which means fewer transactions which means lower revenue, no?
  - kolbe 4y ago
    Would you rather $1 per BTC on 1m BTC transacted or $10 per BTC on 500k transacted?
  - anonu 4y ago
    Spread is just what the market demands to get paid for taking the risk. Higher volatility can also mean way higher volume.
dehrmann 4y ago
Earnings next quarter will be interesting. Transactions are better correlated to the volatility of Bitcoin, so they should have quite a tailwind from it. Their problem will be if it scares people away from crypto. Q2 might be good, but the guidance will be bad.