Coinbase reported significant user growth before IPO

[Anonylz]

Bad news for everyone who belived in COIN:

https://www.nasdaq.com/market-activity/stocks/coin/insider-activity

All insider and early investors, including coinbase CEO - ARMSTRONG BRIAN went all out. They dumped their shares in first few days of trading... Damn this looks super pessimistic not only for COIN investors but also for whole crypto industry. If our first company that went out public do it only to run away with money what testimony this gives about the entire industry.

And here I am thinking I have missed out on a good opportunity to own a share in a reputable exchange, that is not certainly a good way to start in the stock market, they really downplay the investors who trust in the company and the team, why so pessimist on the first few days, that means they have no confidence their shares will survive the market for long, glad I didn't make a move eventually.

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[The Sceptical Chymist]

Coinbase is the largest cryptocurrency exchange in the U.S.
    The company added 3.3 million transacting users in Q1 2021 – a 117% increase
    $133 billion in assets were added to the platform, totalling $223 billion in Q1 2021

Wow, that's a hell of a lot of new customers they got in a single quarter.  It would appear that crypto fever is hitting a lot of people right now, and that's a great thing as long as that enthusiasm doesn't lead to a bubble like 2017.  That's also an incredible amount of assets Coinbase controls--I don't know how it compares to a typical stock brokerage, but it's almost a quarter of a trillion USD.  Whew!

I do think the major factors contributing to this growth are :
ATH
Companies now investing in bitcoins, like major ones.
Government finally trying to establish a bridge between them
Pandemic not getting knocked out anytime soon , just look at the situation in India.

All of those are legitimate factors, and I'd add that there looks to be a lot of new individual investors getting into the crypto market.  Most of them I'd bet are pure speculators looking for short-term profits, but either way I wouldn't discount their contribution to both Coinbase's growth and to the surge in crypto prices.

[Tytanowy Janusz]

And here I am thinking I have missed out on a good opportunity to own a share in a reputable exchange, that is not certainly a good way to start in the stock market, they really downplay the investors who trust in the company and the team, why so pessimist on the first few days, that means they have no confidence their shares will survive the market for long, glad I didn't make a move eventually.

It was never a good oportunity at this price. Everything above 100$ is way to much for coinbase. We already discussed it here. But now... even 50$ may be to much. damn I feel so bad that nasdaq is closed for weekends. I'm used to crypto 24/7/365. Can't wait to see opening price.

[tyz]

I also like the idea that it's not just the Chinese exchanges that are dominating the market such as Binance.

Since when is Binance a Chinese exchange? As far as I know Binance had a Chinese founder but is now officially based in Malta or Cyprus (Europe), or did I miss something?

[arallmuus]

Bad news for everyone who belived in COIN:

https://www.nasdaq.com/market-activity/stocks/coin/insider-activity

All insider and early investors, including coinbase CEO - ARMSTRONG BRIAN went all out. They dumped their shares in first few days of trading... Damn this looks super pessimistic not only for COIN investors but also for whole crypto industry.

Well considering that this has always been the crypto cycle so far, I dont feel surprised at all. Most of the ICO in crypto ended up being dumped after it was listed on exchange . Most of the COIN's early investor are probably crypto enthusiast as well so no doubt that they probably dumped those shares after the price took off

I do think the major factors contributing to this growth are :
ATH

All of those are legitimate factors, and I'd add that there looks to be a lot of new individual investors getting into the crypto market.  Most of them I'd bet are pure speculators looking for short-term profits, but either way I wouldn't discount their contribution to both Coinbase's growth and to the surge in crypto prices.

Coinbase is just one of the gateway into crypto market like many other exchange but most of the new users probably lives in US otherwise it would be absurd to register and use coinbase ( or some new user might feel that it is safer to use coinbase because the stocks are listed in Nasdaq )

[jaysabi]

Coinbase claims to have an userbase of 56 million verified users. So first of all, it is really surprising to know that less than one-tenth of them can be described as "monthly active users". Why should anyone go through the rigorous KYC process, if they don't want to trade regularly (at least once in a month)? One reason may be that Coinbase is quite old (in terms of crypto). It was founded in 2012, and a lot of the users from those days may no longer be active now. I am sure that the ratio of active users to registered users will be much better for Binance.

If you bought bitcoin and aren't a day trader and are just content to hold, you wouldn't have a reason to be a monthly active user because there's no reason to log into your Coinbase account.  I expect there is a good number of people who haven't bought more bitcoin in years at this point and are just content to let what they have sit in their Coinbase account.  

[Lucius]

All insider and early investors, including coinbase CEO - ARMSTRONG BRIAN went all out. They dumped their shares in first few days of trading... Damn this looks super pessimistic not only for COIN investors but also for whole crypto industry. If our first company that went out public do it only to run away with money what testimony this gives about the entire industry.

Bad news, but not unexpected although many are surprised that such thing happen. Coinbase is a profit-making company, and cryptocurrencies are what make that profit - now they've taken another perfectly legal opportunity to make even more profit. - but I don't see the stock price falling, it's still above $340. It may be too early to say that this will end badly, but one thing is for sure - this has not proved to be big news that will push the price up - in the short term yes, but a drop from $65k to $52k (and it is not over yet), is not something it's nice to see (at least for inexperienced investors).

[jaberwock]

I believe that all the exchanges want to get into more "fiat" roads. Coinbase show from the start that will move to specific areas regarding markets and after their NASDAQ entry people just follow. They are the first after all. Not to mention that Elon Musk bought "his" BTC from them and this is pretty much enough advertisement as the hype of almost all the major coins.
At least Coinbase gave ~170.000 shares to its staff/ employees...

I also believe that going public made it look more professional and more importantly more legal. Believe or not there are still people who think that bitcoin is a gray area in law, it is not illegal but it is not legal neither, it is just not in the law at all. We know the reality, it is in the law, it is legal, it is regulated, everything is perfect, a company can't get that big without doing something legal, so we all knew the real answer, but there were tons of people who didn't know if it was legal or not.

With an IPO you are basically telling the whole world, government and it is financial branches all checked from bottom to top every single data there is financial or not, and couldn't find anything illegal, so we are going to be open to public now, and saying that made a lot of people feel more comfortable using it. That is at least what I believe some parts of this was.

[bryant.coleman]

If you bought bitcoin and aren't a day trader and are just content to hold, you wouldn't have a reason to be a monthly active user because there's no reason to log into your Coinbase account.  I expect there is a good number of people who haven't bought more bitcoin in years at this point and are just content to let what they have sit in their Coinbase account.  

You are right, but how many of the users would keep their coins in an exchange like Coinbase? Every now and then we are hearing about exchange hacks and I myself has lost good number of coins when exchanges such as Wex.nz and Cryptopia went down in the past. And if they are keeping their coins in personal wallets, then there is no guarantee that they will use Coinbase to sell those coins. I would also say that the ratio of active users to the total number of registered users sounds low.