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Hi, I would like to comment from an investor perspective. First of all, Coinbase was a gullible company, but nowadays you can buy and sell virtual currency on
by chuprod 4y ago
Hi, I would like to comment from an investor perspective.
First of all, Coinbase was a gullible company, but nowadays you can buy and sell virtual currency on other applications.
Secondly, Coinbase does not consider interest income as a business model, and most of Coinbase's revenue comes from trading commissions. They seem to think that they can make do with only sales from transaction fees. However, I think this is a big risk.
Fidelity has applied for approval of the bitcoin ETF. If this Bitcoin ETF is approved in the near future, Coinbase's business model will be torn to shreds. Fidelity allows you to trade ETFs with "zero commission" whereas Coinbase charges a transaction fee.
In addition, the virtual currency boom will subside with the recent crash in the price of bitcoin. When that happens, sales from virtual currency trading commissions will also slow.
Therefore, Coinbase should suffer in the future, and I believe that if a bitcoin ETF is approved in the future, it will be in a very difficult situation.
I do not know if the company will go bankrupt within 6 months, but I think you should work with a full understanding of the above risks.
- thematrixturtle 4y agoIt is exceedingly unlikely that the SEC would approve a Bitcoin ETF unless the crypto market is cleaned up, which seems even more unlikely. In terms of immediate risks, FTX is eating Coinbase's lunch in terms of market share and efficiency (they're doing more volume with under 10% the headcount), and if/when Tether blows up, Coinbase's USDC is next in line.