Citigroup, Morgan Stanley and BlackRock are all huge companies in the financial space, but they cannot hold a candle to Coinbase, which is arguably on track to becoming one of the largest – if not the largest – crypto exchanges across the globe.
Coinbase Is the Biggest One on the Block
Coinbase has now been trading publicly on the Nasdaq for a couple of days, and the exchange – which was already quite large – is growing thanks to its new IPO (initial public offering). This, in turn, is leading to a massive surge in bitcoin’s price, which jumped beyond the $63,000 mark this week. The currency is now trading at a new all-time high, and the asset and its respective exchange appear to really be complementing each other.
As it stands, Coinbase is currently valued at more than $100 billion. It was founded nine years ago in the year 2012 and collected a little more than half of all transaction fees as a means of earning revenue and building capital. 2020 was arguably the biggest year yet for the exchange, as Coinbase managed to secure more than $1.3 billion in revenue during those 12 months, though 2021 is likely to lead to an even higher figure.
In 2020, much of the money – about 86 percent of it – was stemming from trading fees. This goes to show you just how much people have been trading and how big the crypto space has become. Thus far, the total revenue garnered by the company during the first three months of 2021 is at $1.8 billion, thereby putting the number witnessed for 2020 to shame.
As it stands, Coinbase had approximately 115 million shares ready for trading on Wednesday, April 14, 2021. These shares were slated to go for about $200 each, though that price has since jumped given that the valuation of Coinbase has shot up from roughly $85 million to about $100 million at the time of writing. However, this has stirred controversy and is the subject of argument amongst some analysts, who are advising traders to hold off during the first few weeks of Coinbase investing.
Not Everyone’s Convinced Things Are as Solid as They Seem
They claim shares are likely to fall and these present numbers have been unjustly expanded. Sarah Kunst – managing director for Cleo Capital – is one of these figures and believes $200 per share for a company allegedly as big as Coinbase is not much to brag about. In an interview, she says:
That is a lot of money, and to put it in perspective, JPMC is worth $475 billion. So, they have, you know, 43 million accounts but they only have about 2,000 customers on average compared to Schwab, which has nine trillion under management with 31.5 million accounts and over 200 percent more when it comes to assets under management per customer.