One reason Coinbase's valuation is so high is vertical integration. In the real economy, different cos dominate brokerages, custody, payments, and exchanges. In the US crypto economy, Coinbase dominates them all. If crypto is the future, how does Coinbase not get broken up?
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This makes me even more pessimistic. This P&L shows the top line is all trading-activity driven. And trading volumes fell 50% at one point in late 2018 when crypto value fell, right? So we are at peak crypto hype now with people cooped up at home + tons of competitor coming
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I haven't followed them to closely lately, are they still market making too? and if so where do those revenues show up? Or did they get rid of that (hopefully).
End of conversation
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