COINBASE IPO worth Buying? Answered here including IPO Price Prediction on April 14th 2021

16:30 #CoinBase #CoinBaseIPO #CoinBaseIPOPricePrediction #WorthBuying

Coinbase IPO (Ticker $COIN) coming April 14th, 2021 on Nasdaq. This will be huge for Crypto but buying the IPO comes with risk. I dive into deep financial analysis and come to a conclusion as well as IPO price predcition.

Disclaimer - Not Investment Advice

COINBASE IPO
0:00 Introduction Money making and money-saving information
0:45 Brian Armstrong Founder - Airbnb Engineer Bridge between FIAT and Crypto
Making it easier for FIAT wealth to move into Crypto
Wants 1BN people using Crypto
1:20 Coinbase Vision
Buy, Receive, Pay, Play, Stake, Borrow, Lend
Brian Armstrong Founder - Airbnb Engineer
2:00 Coinbase Digital currency will bring about more innovation, efficiency, and equality of opportunity in the world by creating an open financial system ie Economic Freedom for the world
2:20 First Glance at the $COIN Numbers 2012 founded
43 million retail users (2.8M Mthly transactors)
7,000 institutional clients
115,000 partners
Over 100 countries worldwide
456BN Trading Volume (2020)
$90BN Assets
1200 Employees
$1.14BN Revenue per Bloomberg
$465 is private trading price today
3:40 How they make Revenue
Fees charged on top of spread
Margin Fee 0.5% for all purchases and sales
Credit Card
USDC built on Ethereum tied to US$
4:00 Institutional Clients We Know Of?
Due to the massive allocation of Bitcoin by institutional investors, over-the-counter trading (OTC) is playing an increasingly important role in the crypto market.
MSTR ...2BN
TSLA 1.5BN
4:37 Who owns the Lion's Share
Brian Armstrong 10.9% Class A and 21.8% Class B Shares
Marc Andreessen 24.6% Class A and 14.2% Class B Shares
Insiders own more than 50% voting power
5:00 Why IPO Raise Cash
Private Capital hard to raise
Employees and Investors want to cash out!
Retail are back of the line and pay RETAIL
6:00 Coinbase Direct Listing IPO
A Direct Public Offering (DPO), also known as a direct listing, is a way for companies to become publicly traded without a bank-backed Initial Public Offering (IPO).
Employees and Investors sell their shares to the mkt 114,850,769 Shares
6:30 Historic IPO Returns
“More than 60 percent of more than 7,000 IPOs over 30 years negative absolute returns after five years in the secondary market”
Prof Jay Ritter - University of Florida
7:00 IPOs From 1980 to 2016
18% average gain on the first day over the past 40 years
Avg 6 month gain is about 6 percent or 2% excess return (6-riskless)
From 2000 to 2016, the six-month absolute and excess return has been both negative.
8:20 $ Question
Coinbase's ascent to $100 billion is staggering for many reasons, including the fact that it was valued at $8 billion in October 2018.
8:50 COINBASE Valuations 2018 8bn Jan 2021 54BN secondary selling Feb 2021 100BN 2x in one month.
Xmas $225
Feb 1 $272
Mar 1 $404
Mar 13 $490
Today $466
9:00 Coinbase Chart Examination
10:00 Coinbase Benchmarks
12:00 Coinbase Ratios Benchmarked
RATIOS
Revenue Multiples
Price Earnings Ratio
Rev per user
Profit per user
NYSE
8.65
30.00
NASDAQ
5.90
27.00
Square
10.95
521.00
$316.67
$7
Schwab
9.91
31.00
$390.00
$110
Coinbase
87.72
310.56
$407.14
$115
All global markets valued at 12x sales - 12x rev = 13Bn
13:30 InvestAnswers Opening Price $464 private trading now I reckon opening IPO Cost per Share will be $490.20 ⇧⇧⇧ to $580 on IPO Day April 14th, 2021
14:30 Conclusions Part 1
Coinbase growing very fast
Coinbase very profitable
Dangerous to buy IPOs
Valuation seems frothy
15:30 Conclusions Part 2 - Risks
Crypto Winter (MAU falls off)
Bitcoin price crash
Hack
DeFi taking hold - peer to peer trading
Robinhood IPO
16:30 Conclusions Part 3 - Alternative eg Binance
BNB
ICO Coin
More Volume
A lot cheaper
Less margin
16:45 Conclusions Part 4
17:00 Conclusions Part 5 Warning from Chamath Palihapitiya