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.
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The fees are already quite low on Coinbase Pro. The fees on the consumer product is function of inflows/outflows, compensating for the risk of reversal, fraud, and KYC/AML, not a trading fee per se.
Coinbase's average fee capture over the last 5 quarters is 1.3%. CB Pro charges 0% - 0.5%, implying the vast majority of customers are sticking to the retail app & paying more.
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Yes you are right. My point is the retail fee has 3 components: trading, slippage and compliance/fraud, and I'm saying that compliance/fraud is the largest component implicitly and it is a competitive advantage due to nature of crypto.
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Interesting point - is CB Pro lacking on the compliance/fraud front?
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