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been rethinking the coinbase IPO news
initially, I was bearish on it from four points
- they list very short-lived markets, often connected to their VCs backing. this results in short term fees but long term maintenance and ghost town market
/1
initially, I was bearish on it from four points
- they list very short-lived markets, often connected to their VCs backing. this results in short term fees but long term maintenance and ghost town market
/1
- they had a real chance to be an institutional-grade exchange. Instead, everyone left or was fired that
could have made this happen.
- companies don't necessarily IPO because they are doing well but often to crowdfund their gravity well losses. (i.e., GoDaddy).
/2
could have made this happen.
- companies don't necessarily IPO because they are doing well but often to crowdfund their gravity well losses. (i.e., GoDaddy).
/2
No one externally has seen coinbase's financials yet. They have to post this before the IPO is approved.
- They have had questionably large spends in the course of purchases and acqui-hires and done nothing with the tech so bad capital management.
/3
- They have had questionably large spends in the course of purchases and acqui-hires and done nothing with the tech so bad capital management.
/3
But thinking about this more, there are many legal and access reasons normal people and funds wouldn't have crypto exposure directly. Previously, they just had gbtc and a few other ETPS as options to try to capture.
this isnt great for a number of reasons.
/4
this isnt great for a number of reasons.
/4
What if they start looking to coinbase as a way to get exposure. "invest in the company that sells pickaxes"?
My bearishness is from using the product and knowing the history behind the company. There are plenty of products that suck but still make a profit year over year.
/5
My bearishness is from using the product and knowing the history behind the company. There are plenty of products that suck but still make a profit year over year.
/5
