After the recent filing by Coinbase to become a public listed company on the NASDAQ stock exchange, there is much speculation as to what the company will be worth if and when it becomes listed.
Early reports suggest the company could be worth around $104 billion. There are a lot of positive factors that influence this valuation not least of all the fact that Coinbase is already profitable – to the tune of $322 million in 2020.
There are potential banana skins to consider as well though. One of the biggest problems is the fact that Coinbase is underpinned by the crypto industry – one in which there is substantial fluctuation.
Because the company are so reliant on trading commissions there are lots of pitfalls to come. It may face pressure from other crypto whales such as Robinhood and Square as they step further into the market.
Coinbase may also suffer if we see another “crypto winter” where prices and trading activity plummet or simply go quiet for months on end – something that would potentially bring the profits of Coinbase to a standstill.
Having said all of that, many people think Coinbase has a bright future post NASDAQ listing. One such person that backs Coinbase is Marc Andreessen from the venture capital firm Andreessen Horowitz.
Marc certainly has a history of backing successful tech startups being a longtime mentor of Facebook co-founder Mark Zuckerberg.
In a similar fashion, Marc has been there as a mentor to Brian Armstrong – the CEO of Coinbase – over the past 2 years, showing that he perhaps feels Coinbase are a similar beast to a fledgeling Facebook.