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SBF
@SBF_FTX
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@SBF_FTX
3) Yesterday I looked into Bakkt's SPAC. It did not look very good. idk maybe it'll be worth $10b soon because fuck everything.
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SBF
@SBF_FTX
1) BAKKT is about to go public. There are a number of "interesting" things in their deck. sec.gov/Archives/edgar
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SBF
@SBF_FTX
5) Well, it's hard to find a lot of them. But, roughly, it looks like they made about $1-2b of revenue last year, had moderately high expenses, and had something like ~50m customers, give or take.
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SBF
@SBF_FTX
6) The first thing that jumps out: FTX traded about 2x what Coinbase did last year. FTX did not make $1.5b of revenue. What's going on there?
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SBF
@SBF_FTX
7) Well, their fees are higher than FTX--something like 4x as high! But that still doesn't explain it.
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SBF
@SBF_FTX
9) Now, I want to tread lightly here--don't throw stones in glass houses! But I tried to buy $8 of BTC. The price I got was... $40,422. BTC is currently trading at $35,250. That's a 14.5% fee. 14.5% is a lot. (Maybe people should check out FTX!)
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SBF
@SBF_FTX
10) Well ok then. So, mostly this is the "Coinbase fee". This isn't a % fee, it's a $ fee; in this case, $0.99. On a $8 trade. So that's 12% right there. The other 2.5%? Well, that's the spread.
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SBF
@SBF_FTX
11) Ok, so now things start to line up more. If they traded $500m/day, and made $1.5b, that means that Coinbase made about 1% on their average trade. Which, presumably, is some blended rate between ~8bps on their "Coinbase Pro" trades, and 1-10% on their app trades.
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