NSQ:COIN | COIN - Could Coinbase Be A Good Way Of Investing Indirectly In Cryptocurrency?

2nd May '21 by William K

13 comments 922 reads

Coinbase (COIN) founded in 2012, is a cryptocurrency exchange that enables hedge funds, corporations and retail users to access the cryptocurrency markets through advanced trading and custody technology. There are 56 million verified users. COIN was launched as an IPO, on 14th April, 2021, with a valuation in the order of $60+ billion making it one of the largest IPOs of all time (comparable to Facebook and Uber). The launch was not underwritten by banks with the advantage of saving money but the disadvantage, perhaps, of less scrutiny. Unlike many technology IPOs, COIN is actually profitable and has no debt.

The launch price was $381, it hit $429 on the opening day before falling back to $328. The current price is $297. The Nasdaq reference price was $250, valuing the the company conservatively at $47 billion. Analysts forecasts of share price are $479.

COIN could be a useful introduction into crypto investment for retail investors who want to trade indirectly.

Reasons for investing:

1. Crypto is undoubtedly here to stay and the use will expand.

2. COIN is a new company and may prove attractive to multiple ETFs when the price stabilises.

3. COIN could be bought up, at a premium, by a large technology company such as Apple, or, dare one say, Tesla.

Risks

1. Cryptocurrency is a volatile asset and the value of COIN is linked to crypto valuations

2. Competition from large financial trading platforms like Fidelity.

I'm thinking to taking a punt, but not at current prices. Does anyone have any opinions on COIN?

Unlock with Email

Unlock with Google

Already have an account?
Login here

Coinbase Shibainu SCUM!!!!

Coinbase Shibainu SCUM!!!!
7th October 2021 I wanted to fix my profit by converting or selling to fiat money my Shibainu holdings. Nothing worked. Six times or more transactions cancelled by Coinbase without any reason - just information email. I lost 30% of my money because of their SCUM. Where is FBI or US Financial Authority to punish them!!!!!!!!!!

Useful Share

one_eyed_jack

2nd May '21

I've not been tempted by $COIN as yet, though I might be once the price has stabilised a bit more. I would like to see how it deals with a large(ish) correction in the price of BTC or ETH, say 20%, as that would be one indication of market conviction. It should make money either way being an exchange, and could be the first bluechip crypto play :-)

Also I don't think it hodls much - Bitcoin Treasuries shows it as holding $299,138,541 in BTC, which for a $50billion (ish) company means people aren't holding it for indirect exposure to BTC, as is the case with $MSTR (which I hold for that reason).

William K

29th Jun '21

Mark Minervini bought this yesterday morning when the price was around $230. It looks like a good bet although he doesn't seem to be using his trend template.

Breakout Trader

It's certainly one I'm keeping an eye on, together with Argo Blockchain.

But I think both will be largely dictated by how Bitcoin itself performs. There's a possibility that Bitcoin is bottoming at the moment, but its still below its key averages on both the weekly and the daily, so I still favour a move down to re-test $20k before upwards momentum can resume in earnest.

Biding my time with these crypto plays.

Quite agree. Crypto is far too volatile for my liking these days. I don't see any proper support for Bitcoin much before £20K and I'd want a huge margin of safety before touching it. Ethereum looks a better bet at present as it's bounced off the 30 week MA and in the value zone - between 13 wma and 26 wma. But I'm in no hurry to buy. I think equities are moving into another bull market, and the Nasdaq 100 has jumped 500 points over the last fortnight. So for the time being I'll stick with equities.

Neil D56

Can't disagree with you guys..........just adding another chart to highlight Fibonacci retracement points (pretty close to 61.8%) and the weekly Ichimoku cloud support which is in the 25000 area. Might be time to consider dipping toes!!

Howard Adams

Hi Wilkonz & others

This vid from 18th April is a good review of Coinbase ($COIN). This vlogger Alex really does his homework IMO. He focusses in detail on what ARK Invest/Cathie Wood are doing in the innovation/growth investing space.

Regards

Howard

whatmore1951

I have not invested in bitcoin as yet. I did some research with a view to taking a small position. I decided I should buy Grayscale Bitcoin Trust (GBTC) but HL wont deal because there is no Key Investor Information Document. This is annoying. Why would a US trust have to comply with EU/UK investor regulations when they are not listed here?

shauniekent

...

Slight technicality – it wasn’t an IPO but was a ‘direct listing’. But same same.

You buy Coinbase if you want to take a position on ‘cryptocurrency’ in general growing. Coinbase list a large number of cryptocurrencies and tokens, so you need not ‘pick’ a winner to profit from the growth of the entire space. You also buy it if for some reason you are unable to buy the cryptocurrency directly - which is the case for many institutions.

I’d label volatility as a positive, you do not get the huge historic growth without it. You may want to pay attention to which point in the cycles we are at though before buying (hint we are half way through the bull market). Also, volatility is easily managed by reducing your position size.

They are a rapidly growing business with a well recognized brand. There are many, many other cryptocurrency exchanges but none so dominant so buying them is a bet they can continue to grow and leverage their brand and size to capture a good share of the growing pie.

Regulatory risk is small in my opinion with officials and regulators in the USA making increasingly ‘crypto’ friendly noises over the past year – quite the opposite of what you’d expect from those who say they will ban it. Furthermore, Coinbase are an entirely remote working company, so at the very worst case scenario imaginable, they could simply relocate jurisdictions. This means the downside risk is higher than zero.

30th Jun '21

Hi all

$COIN (Coinbase). This hit my newsfeed yesterday

'Germany grants Coinbase licence for crypto custody services
Coinbase Global IncCoinbase Global Inc
News
Yesterday 4:50 pm
FRANKFURT, June 28 - Germany's financial market
watchdog BaFin on Monday granted the cryptocurrency exchange
Coinbase permission to provide crypto custody services and
proprietary trading, the first licence it has issued for such
business in Germany.

The licence allows Coinbase Germany GmbH to conduct
proprietary trading of crypto assets, BaFin added.

Coinbase, which went public earlier this year, did not
immediately respond to a request for comment.'

I hold $COIN

Interesting video. Thanks. One cannot accuse Cathie Wood of risk aversion. Her projection of Bitcoin being $500,000 in 5 years is bold but not impossible. She ties in the growth of $COIN to the value of Bitcoin. Her strategy is to dollar average COIN, buying the dips. High risk, but if COIN support holds good at $210 it could be tempting.

Wilczynski

8th Oct '21

COIN - Could Coinbase be a good way of investing indirectly in cryptocurrency?

Unlock the rest of this article with a 14 day trial

About the Author

William K

13 comments

Coinbase Shibainu SCUM!!!!

Unlock the metrics for all these stocks and more...

Unlock the metrics for all these stocks and more...