Nearly 100% of Coinbase's revenue has high exposure to the price of crypto (if Bitcoin goes up, Coinbase's revenue goes up in proportion).
Until they change their pricing, $COIN will not trade like a legit exchange but as a $GBTC alternative.
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If you can buy your crypto on
$COIN and sell it at another venue, other venues can “buy” liquidity by paying for it or being the principal. Reminds me of cash equities. -
But if it is very hard to port your crypto to other places because
$COIN is also a wallet, which you transact from, then I think it starts to look more like a futures exchange where clearing is the moat (buy and sell has to be at the same place due)
End of conversation
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