3) The problem is that they report revenue by "retail" vs "institutional". But the *real* split is by platform, not user.
So, yes, their retail take rate went up from 1.10% to 1.23%. At the same time, their institutional take rate went down, from 0.029% to 0.025%.
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4) Coinbase's *real* split comes when you look at the mobile app (and coinbase.com) vs pro.coinbase.com.
App/Coinbase charge ~3%; pro charges ~0.02%. (150x higher on the app!)
Retail *correlates* with mobile app, but not perfectly.
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5) So maybe their take rates per user went up, and yes, their userbase did seem to get more retail heavy.
But say, for instance, that Coinbase finds an individual whale that trades $10m/day, and onboards them to pro.coinbase.com.
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6) Coinbase's reported retail take rate goes *down*, because there's now more retail pro.coinbase.com volume bringing down the *average* fee paid by individuals.
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9) Anyway, the second thought I had on 's analysis--about OTC and prime.
Yes, those did grow. But they're almost certainly under institutional transaction revenue. That whole category was only 4% of Coinbase's revenue, so it can't have been a big factor!
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13) The real breakdown, roughly, of true net rev:
Mobile/coinbase: $2b, ~88%
Retail on Pro: $100m, ~4%
Insto on Pro: $75m, ~3%
Insto on OTC: $25m, ~1%
Custody: $50m, ~2%
Other: $50m, ~2%
(Backing out some guesses here, could be off by a bit)
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Why are they blatantly ripping retail off? It's really strange to me that they offer worse prices for retail. Retail prices should be better because they are uninformed flow.
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May be beta, but they brought "Advanced" trading to Coinbase/mobile and it has lower fees than Pro.
Not sure when that rolled out and how much it changes the analysis, but should mean lower rev going forward.
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Imagine making billions in in extra revenue simply due to extreme laziness.
Coinbase vs. Coinbase Pro
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