Economic Observer Network reporter Ren Xiaoning, intern Lu Shuo At the highest point of $65,000 on the Bitcoin site, a platform for trading Bitcoin in the United States was listed on the Nasdaq. On April 14, US Eastern time, Coinbase went public. It is the first bitcoin exchange with a formal license in the United States and the first listed cryptocurrency company. For the currency circle, last night was an important milestone moment. Terence, the business leader of Binance Greater China, told the Economic Observer that the listing of Coinbase is a recognition from the mainstream world for the industry. It also provides experience for companies in the crypto asset industry or the blockchain industry to prove transactions. The stock can also be listed. Big ups and downs on the first day of listing After the opening on April 14th, Eastern time, the market value of Coinbase rose sharply and broke through 110 billion U.S. dollars, and then quickly shrank. A few hours later, it plunged by nearly 30%, and its market value at the close was 61 billion U.S. dollars. 2.4 times the market value, net worth has surpassed traditional financial institutions. Founded in 2012, Coinbase is the largest Bitcoin and other digital currency trading platform in the United States. Last year, Coinbase’s revenue was US$1.277 billion, an increase of 140% over 2019; net profit in 2020 was US$322.3 million, an increase of 960% over 2019. Coinbase is a compliant exchange in the United States. It is the first licensed bitcoin exchange in the United States. It has digital currency trading licenses (MSB) in many states in the United States, as well as digital currency licenses from the central banks of the United Kingdom and Ireland. Coinbase provides trading services for Bitcoin and other digital currencies. The current digital currency environment is getting better. Since the beginning of this year, Bitcoin has experienced a round of skyrocketing market, from 30,000 US dollars at the beginning of the year to 65,000 US dollars today.TeslaThe founder Musk is an optimist for digital currency, and Tesla can already use Bitcoin to pay.Morgan Stanley,Goldman Sachs,Black stoneAs companies invest in Bitcoin as a store of value, California real estate company Caruso also announced that it will accept Bitcoin as a rent payment. The coexistence of bubbles and opportunities Despite the gratifying gains, the outside world has always had doubts about Coinbase. The first thing to bear the brunt is whether there is a bubble in its high market value. Investment research company New Constructs stated that the overall valuation of cryptocurrency platforms is too high. As the market matures and more competitors join, Coinbase’s high profits will inevitably be eaten away. The ridiculous valuation of $100 billion will only make They cannot realize the expected profit. As a platform party, Coinbase’s revenue mainly comes from commissions charged when providing online transactions of encrypted assets, and fees ranging from 0.5% to 0.04% are charged based on the transaction volume. This part accounts for up to 86% of revenue. In 2020, Coinbase has approximately 2.8 million monthly active users, an increase of 180% from the end of 2019. The total crypto transaction volume in 2020 is US$193.09 billion, an increase of 141.7% from 2019. Compared with similar digital currency exchanges, Coinbase’s commission fees are relatively high. How to continue to grow in the environment of low-price competition from opponents is a problem that Coinbase needs to face. In addition, cryptocurrencies still have gray areas under the existing regulatory system. Even though Coinbase has made great efforts in legal compliance, the red lines still happen from time to time. On March 19, Coinbase and the US Commodity Futures Trading Commission (CFTC) reached a settlement with allegations of improper reporting of trading volume and “self-trading”, and were fined 6.5 million yuan. This incident also delayed Coinbase’s listing plan to April. Previously, Coinbase had repeatedly confronted the CFTC on suspicion of cross-trade transactions, illegal sales, and security deposits. Terence told reporters that at present, the legal provisions of US cryptocurrency exchanges in terms of operating mode and product form are still in the groping stage. In the future, the regulatory provisions and related policies of the SEC and CFTC may be adjusted and become more stringent at any time. Coinbase listed 27 key points on volatility risk in the prospectus, including changes in investor confidence, negative publicity on social media, regulatory issues, and technical issues. However, in any case, the listing of Coinbase is a big step for the cryptocurrency industry. Terence said that the listing of Coinbase will arouse more attention to cryptocurrencies in the traditional financial sector, and will also help increase user trust in exchanges, provide endorsements to the crypto industry, and benefit the overall market.
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