Coinbase IPO was the largest IPO in 2021. 86 billion USD valuation

[Sithara007]

Bnb are essentially bonds, they'll still be bought the same ways - as in binance's statutory buyback - and will still be used for fee reductions (for as long as binance wants them to).

Their market cap is $75bn but I don't know if that's close to what they're worth.

Binance coin would PROBABLY be a better (short term) investment than a stock though as it'll keep pace with the cryptocurrency market better.

BNB may be a better investment than the stock. I agree with that part. But I need to ask a very difficult question. Can Binance (with its users mostly from non-US countries) have a market cap that is significantly higher than Coinbase (which has a majority of the users from the US). Right now BNB is having a market cap of $75 billion, while Coinbase is valued at $54 billion. For me it looks like either Binance is overpriced, or Coinbase is undervalued. Maybe the usage of BNB in fee reduction gives it more value.

[kryptqnick]

I'm not surprised it was the biggest, as it's a company that's already known to crypto users, so there's a minimum risk of getting scammed, and they have 56 million users, so a huge community of people behind them. These two things sound promising enough to invest it because reputation + a huge user base almost guarantee the price will skyrocket. But that's a public offering, so it's about selling shares to people. That's what might have gathered attention not only of the crypto community, but of big stock traders as well, since getting into something crypto-related and yet familiar is getting more attractive to them.

[Vishnu.Reang]

I'm not surprised it was the biggest, as it's a company that's already known to crypto users, so there's a minimum risk of getting scammed, and they have 56 million users, so a huge community of people behind them. These two things sound promising enough to invest it because reputation + a huge user base almost guarantee the price will skyrocket. But that's a public offering, so it's about selling shares to people. That's what might have gathered attention not only of the crypto community, but of big stock traders as well, since getting into something crypto-related and yet familiar is getting more attractive to them.

Tech stocks have given good returns ever since the pandemic started. Top stocks such as AMZN, FB, TSLA and MSFT have given huge returns during the last 18 months, and I strongly believe that Coinbase also benefitted from the prevailing positive atmosphere. The markets are at all time high now, and a lot of experts claim that a correction is due in the near future. It will be interesting to see how new stocks such as Coinbase perform under such a scenario. And BTW, in case of Coinbase it was not an IPO. They went for direct listing. Please correct me in case I am wrong.

[beerlover]

I'm not surprised it was the biggest, as it's a company that's already known to crypto users, so there's a minimum risk of getting scammed, and they have 56 million users, so a huge community of people behind them. These two things sound promising enough to invest it because reputation + a huge user base almost guarantee the price will skyrocket. But that's a public offering, so it's about selling shares to people. That's what might have gathered attention not only of the crypto community, but of big stock traders as well, since getting into something crypto-related and yet familiar is getting more attractive to them.

I have to say they dropped pretty quickly afterwards, right now it is like 50 billion or so in marketcap. So, it is not just about having a lot of users or being great, they have an amazing model to make money as well with the trading fee's and that is what most of the wall street people did as well, they just make money based on commission whenever they convince someone to buy a stock but Coinbase is a bit different in which they do not even convince people, people go register an account to do that job themselves.

So, the reason why it was highly valuated and now not so much is the fact that it is a great way to make profit, buy the stock and hold it long enough and they will keep on profiting, the operating costs are not high and the profits are steady and that is what you want from any company or stock you own. It might be down now because it was overvalued, but the idea stands that it is a good stock to own.

[mojun7982]

I'm not surprised it was the biggest, as it's a company that's already known to crypto users, so there's a minimum risk of getting scammed, and they have 56 million users, so a huge community of people behind them. These two things sound promising enough to invest it because reputation + a huge user base almost guarantee the price will skyrocket. But that's a public offering, so it's about selling shares to people. That's what might have gathered attention not only of the crypto community, but of big stock traders as well, since getting into something crypto-related and yet familiar is getting more attractive to them.

I have to say they dropped pretty quickly afterwards, right now it is like 50 billion or so in marketcap. So, it is not just about having a lot of users or being great, they have an amazing model to make money as well with the trading fee's and that is what most of the wall street people did as well, they just make money based on commission whenever they convince someone to buy a stock but Coinbase is a bit different in which they do not even convince people, people go register an account to do that job themselves.

So, the reason why it was highly valuated and now not so much is the fact that it is a great way to make profit, buy the stock and hold it long enough and they will keep on profiting, the operating costs are not high and the profits are steady and that is what you want from any company or stock you own. It might be down now because it was overvalued, but the idea stands that it is a good stock to own.

Given how "small" Coinbase is compared to Binance in terms of trading volume and customer base (and probably also profitability), I was expecting the stock to drop by a lot. If you compare businesses across a sector, why should Coinbase have a higher valuation than Binance? That didn't make sense to me. Or do you know of any specific reasons why that could be justified?

[bryant.coleman]

Given how "small" Coinbase is compared to Binance in terms of trading volume and customer base (and probably also profitability), I was expecting the stock to drop by a lot. If you compare businesses across a sector, why should Coinbase have a higher valuation than Binance? That didn't make sense to me. Or do you know of any specific reasons why that could be justified?

That's strange. Coinbase claims to have tens of millions of active users, and most of their userbase is from North America/Europe. Binance may be having a higher number of users (but the margin may not be very large), mostly from East Asia. In terms of overall trade volume, Binance has the edge over Coinbase. Taking in to account all these factors, the valuation should be more or less similar for these two. And at this point, Binance is valued 1.5 times higher than Coinbase ($76 billion vs $54 billion).

[mojun7982]

Given how "small" Coinbase is compared to Binance in terms of trading volume and customer base (and probably also profitability), I was expecting the stock to drop by a lot. If you compare businesses across a sector, why should Coinbase have a higher valuation than Binance? That didn't make sense to me. Or do you know of any specific reasons why that could be justified?

That's strange. Coinbase claims to have tens of millions of active users, and most of their userbase is from North America/Europe. Binance may be having a higher number of users (but the margin may not be very large), mostly from East Asia. In terms of overall trade volume, Binance has the edge over Coinbase. Taking in to account all these factors, the valuation should be more or less similar for these two. And at this point, Binance is valued 1.5 times higher than Coinbase ($76 billion vs $54 billion).

How did you come to the conclusion that they should be roughly valued similarly?  

#
Name
Exchange Score
Volume(24h)
Avg. Liquidity
Weekly Visits
# Markets
# Coins
Fiat Supported
Volume Graph (7d)
1

Binance

$28,383,863,536 (Vol 24h)

729   (Avg liquidity)

25,870,102 (weekly visits)

1397 (markets)

384 (coins)   

AED, ARS, AUD
and +43 more (including all major currencies)

Coinbase Exchange

$4,006,924,944 (Vol 24h)

588 (Avg liquidity)

3,017,031 (weekly visits)

284 (markets)   

94 (coins)   

USD, EUR, GBP


Isn't the volume the most decisive number here? Which also correlates with the weekly visits as obviously. I would say Binance should in pure numbers be above and beyond Coinbase. Binance will now also get fully regulated. That might be the difference. But I am quite sure in terms of ROI Coinbase is nowhere near Binance.

Add: One factor might be that Coinbase has huge OTC trading volume that is not reflected on CMC.

[bryant.coleman]

Isn't the volume the most decisive number here? Which also correlates with the weekly visits as obviously. I would say Binance should in pure numbers be above and beyond Coinbase. Binance will now also get fully regulated. That might be the difference. But I am quite sure in terms of ROI Coinbase is nowhere near Binance.

Add: One factor might be that Coinbase has huge OTC trading volume that is not reflected on CMC.

Trade volumes are always manipulated. Binance has a large number of coins that are outside the top-100 list in their platform, and order books for these coins are distorted. The only accurate way to measure the trade volumes is to measure the withdrawals and deposits that are being made in fiat. And for trading volumes, I would like to compare specific pairs, like BTC/USD and ETH/USD. But the issue with Binance is that they only have BTC/USDT or BTC/BUSD pair instead of BTC/USD (same with Ethereum as well). I would give more weightage to the numbers from BTC/USD trade, to those from BTC/USDT. Because this can be very hard to manipulate.