Bitcoin Forum

As many know, Coinbase has filed for an IPO date to be decided. Currently it is accessible only for large clients on NASDAQ private market. The current valuation for Coinbase is around 77 Billion, and it is not the biggest player there. If it were to succeed, it could bring other exchanges into the public offerings games.

Article here. (https://www.nasdaq.com/articles/coinbase-readying-for-public-listing-gets-%2477b-valuation-from-nasdaq-private-market-2021)

Nice.  77 Billion... Wonder how binance would be evaluated with 20 times bigger spot volume (spot + derivatives), chain with 2x more transactions than ETH, with bigger DEXes than ETH. I guess like 500 billion to 1 trillion?  BNB is worth 35bilion now... I know that it is a coin not a security but... no one said it will not change in the future.

I don't understand why you opened a new thread on the same topic - couldn't this news just be added to the existing discussion? -> Coinbase has filled for going public (https://bitcointalk.org/index.php?topic=5320140.0).

The global crypto market valuation is 1.4 trillion usd. How come Coinbase alone is valued at 77 billion!!!! I mean a single company based on crypto market is having a valuation of half of the entire crypo market. That's really strange!

I thought Binance is ever bigger company than Coinbase. I am really not sure what is the evaluation methodology here but it looks severely wrong!

1 - 77 bilion is not half of 1.4 trillion. Its 1/20.
2- Whole crypto industry valuation is not 1.4 trillion. Its tha value of all tokens/coins. For example metamask does not have its token and is part of crypto.

The reason is that I am discussing valuation on this one. I know that for you strategy and valuation may be the same thing, but for me they are not. You will notice that comments are quite different.

It's only strange to you because you're not looking at things properly and your math is way, waaaay off.

Coinbase is an exchange, not a component of bitcoin's market cap.  Anyway, you figure it out for yourself.  I'm kind of amazed that Coinbase is valued that high.  As I said in the other thread, they've never released any profit/loss statements (because they were never required to), but I'm starting to think they're a pretty profitable operation.  It's either that, or the company is being extremely overvalued at $77B, which is always a possibility with tech stocks--and I'd consider Coinbase to fall into that category.

The valuation of a company is not only based on it´s assets (book value) but (usually) taking into account the future cash flow that will produce. In simpel terms, the value assigned to Coinbase is not the Cryptos they own, but the expect income from fees, trading, services etc...

If you have some time and interest you may start here. It is time well employed. (https://corporatefinanceinstitute.com/resources/knowledge/valuation/valuation-methods/)

at least, this will be clear to other people why they come up with such valuation. people should educate themselves on this aspect. but for some spectators without knowledge about it, they will be overwhelmed when they see this number. they will think that crypto is really gold mine. and that they will make a mistake of thinking that when youre into crypto, it is the easy way to get rich.
coinbase has come a long way. now, they will be attracting more investors into crypto.

I'm kinda surprised that Coinbase is really valued at $77 billion. Perhaps their branding and their influence in the cryptomarket helped (although their service has been pretty much shit for the past few years, heh). Private firms and entities really look up to Coinbase as the gold standard for exchanges, that's why they came up with that amazing valuation for a company that started dealing with high-risk assets considered as something "unconventional" just a few years back. Well, I just hope that Coinbase lives up to the hype and the valuation that private firms deem it to be. There's a lot of screw-ups involving exchanges lately and Coinbase isn't invulnerable from that.

Coinbase is a good exchange to those who have the access on that site, and its pretty big considering its market value today. If they fully support Bitcoin and succeed on their private IPO, this can be a big help to cryptomarket. I just hope that they have the back-up plans like Binance if something bad happen, let’s see if Coinbase will become more big soon.

What a big number for such cryptocurrency exchanges. They have been playing in the cryptocurrency world for many years and I can say that their services are quite good although there are still many mistakes. BUt I believe they are trying their best to improve the system as well as the customers services. Upon all the online wallet, they are the one I can really put my trust on

If coinbase was such big, It would not a surprise to me that binance will be at least 10 times more valuable.

That's huge man, really huge. I couldn't imagine more success than this for any crypto associated project in the "public offering". Coinbase was very first wallet which I started using but soon shifted to the local exchanger and wallet which would give me easy withdrawal to local banks. However, Coinbase features has always been easy and attracted investors in the early days.

Very few of them make it to the end and at such grand level.

Releasing an IPO is start to their physical appearance besides crypto space. They might just reshape the crypto and fiat connectivity so that their users can benefit from them easily.

The 77 billion is obviously a milestone for them. They should keep their focus on and developments at peak with new additions if they wanna keep this popularity and growth.

We can try to estimate it base on data that we have.

Binance has 20 times bigger volume at the time i write this.

Binance 2020 calculated profit ~= $1.7 B (https://bitcointalk.org/index.php?topic=5208144.msg56289369#msg56289369)

20 times lesser volume =/ 20 times less profit but lets say 5-20 times.

This gives us 85-340 mln $ profit.

Evaluation of $77 B gives us P/E = 905 - 226

Current average for nasdaq is 24.

Se we can fairy say that coinbase is 10x to 40x overvalued based on this 1 indicator or investors predict very rapid grow in next years - what is not impossible. I guess that 2021 will be twice as good as 2020 was for crypto exchanges based on the volatility that we have now.

For comparision - Tesla (most pumped and hyped stock) P/E = 1000. Coinbase might be close to that

And this is just the start, think about it this way, when facebook first started it was about 100-150 billion range if I am not wrong and they are now 700+ billion dollars as well, and this was from private to right now, the public was around 300 billion too, which is why I think this 77 billion for coinbase will definitely be closer to 200 billion when it is on first few days of the public one as well.

This is kind of a problem in the traditional markets as well, because there is a thing about how private markets allow rich folks to buy right now, and then when it becomes public the price is even higher so those banks who bought during private sale suddenly becomes richer right away, if I had a chance to buy the shares right now I would too but they do not give me that option. Long story short I think coinbase will be 500+ billion dollars easily in a few years.

Crazy how in the past no one bats an eye about coinbase and now it already has some huge valuation.
I know people has always been talking about coinbase since years ago but they always overshadowed by other exchanges.
I mean, I consider coinbase to always feels lacking but this valuation alone shows that people shouldn't look down to any crypto company. Maybe after this more and more crypto company gonna file for an IPO.

Not sure about the Binance valuation, as trade volume alone can't determine the price. Coinbase is having 43 million cryptocurrency users registered in its platform, and the vast majority are from the United States. I am not sure about the numbers for Binance, but I suspect that it may be lower than this figure. Also, most of their users are from countries such as China and South Korea.

Paypal's market cap is around $300 billion. Coinbase at $77 billion could be reasonable with cryptocurrencies future growth potential priced in. Coinbase is basically the crypto version of paypal. I would expect both assets to perform in similar fashion over the long term.

Bitmain tried for an $18 billion IPO back in 2018 which was cancelled. Then revived in 2019. Now I'm not certain what the status of it is.

PayPal's valuation is based on their current user base and revenues, while that for Coinbase is based in future speculation. PayPal is currently having around 286 million active users, while the same figure for Coinbase is 43 million. For Coinbase, the transaction volume is only a fraction of what PayPal boasts of. Also, PayPal is having somewhat of a monopoly in it's sector, while Coinbase is facing stiff competition.

They can grow, this is just the start and it should be a good thing because they are valued at around 77 billion USD, not to mention that there aren't a lot of crypto exchanges in the stock market which means that if the investors see that Coinbase can grow, they will invest in it which in turn will increase their value.

Paypal is totally dominating the electronic payments fiat market.I don't see any Paypal competitor coming even close to Paypal,in terms of active users.Skrill is the biggest Paypal competitor,but who the hell uses Skrill nowadays.Only online casino and sports betting websites are accepting Skrill.
Coinbase has a few big competitors in the crypto industry and I don't consider Coinbase being the best cryptocurrency exchange platform in the business.
This IPO is definitely overvalued.

If coinbase valued over 77 billion, how much more is binance. I think it would make them near a half a trillion mark and probably be making much more for the coming years.