I've heard some say $COIN is a short bc their high trading fees will come crashing down. I disagree.
Coinbase has:
- Robinhood-esque UI
- Massive marketing budget
- Consumer trust in a market known for scams
Pricing power can stay around much longer than market may expect.
-
To be clear I do think fees come down over time but the ramp will be slow. Their strategy is to spend as much on marketing as possible (they guided 15% of revenue in '21 vs 5% in '20) and defend their pricing while institutional revenue grows. I think they'll succeed.
No other crypto platform will be able to match them in marketing spend, and I think that combined with their first-mover advantage keeps fees healthy for at least the next couple years. After that M&A may need to save the day.