Milestone: Can Coinbase start the wave of listings on crypto exchanges?

After the listing of Coinbase, can the "traditional" centralized cryptocurrency exchange usher in a new wave of leapfrog development? Since the birth of Bitcoin, as the most important part of the cryptocurrency ecosystem, the role played by cryptocurrency exchanges in the market is self-evident. Coinbase is currently the largest compliant cryptocurrency exchange in the United States. According to previous disclosures by the U.S. Securities and Exchange Commission (SEC), the exchange’s total revenue in 2020 will reach $1.3 billion, more than double the revenue in 2019. In terms of market capitalization, as of December 31, 2020, Coinbase had 21,035,491 issued Class A common shares and 164,950,620 Class B issued common shares, plus 114,850,769 Class A common shares to be issued to the public, for a total of 300,836,880 shares. If calculated based on the non-public transaction weighted transaction price of USD 343.58 of Class A shares in the first quarter, the market capitalization of Coinbase in the non-public trading market has exceeded 100 billion U.S. dollars, so its listing is of extraordinary significance to the entire industry, not only to the entire The cryptocurrency exchange market has injected a "boosting shot", and it can even be said to be a milestone and a new starting point in the development of the entire cryptocurrency industry. Coinbase's listing is good, boosting CEX platform currency to soar Work has brought us here. We have had many ups and downs. Through luck and skill, Coinbase succeeded. Today's listing is a milestone, we are still in the early days of this industry, we will focus on the future, our mission is to increase economic freedom in the world and build the best crypto experience for our community. [2021/4/14 20:18:38] Before the listing of Coinbase, the main blockchain concept stocks in the US stock market all came from mining companies, but these companies were not comparable to Coinbase in terms of financial performance. Judging from last year's financial data, even those leading mining machine companies did not perform as well as Coinbase. Not only that, Bitcoin has broken through the $60,000 resistance level many times this year, and it has been able to basically maintain the range of $58,000-60,000. From the trend point of view, the duration of this bull market is relatively longer. If Coinbase can follow the trend It is expected that it will be able to capture better market response, and may even become a weather vane for the capital market to "test" the encryption market. The French Commercial Court has ruled that Bitcoin is an alternative intangible asset, which is an important milestone in the encryption market: According to previous reports, the French Nanterre Commercial Court has ruled that Bitcoin is an alternative intangible asset. Roman Matkovskyy, an associate professor at Rennes Business School in France, said that this ruling is an important milestone for the further development of the encryption market, especially in France. Frost Brown Todd LLC lawyer John Wagster said, “The French court’s characterization of Bitcoin as a financial instrument may be an important development in the legalization of cryptocurrencies, but the true significance of the ruling will depend on whether and how it is incorporated into the French regulatory system. Christopher Giancarlo, former chairman of the US CFTC, said that the ruling may have an impact on France, and it may also have an impact on other places, such as the European Union. Legally speaking, the legal definition of an asset is the starting point for regulation. Rob Odell, co-president of Salt Lending, said, "This ruling in France should further legitimize encryption and may encourage more adoption and participation by new entrants, even if it does not become law. France is the world's seventh largest economy GDP calculation), so it certainly has the potential initially to affect other markets, especially the European Union. In emerging markets and technologies like Bitcoin, regulators around the world are concerned about what other national regulators think about cryptocurrencies. Therefore, France does Any ruling will be closely watched by global regulators.” (Cointelegraph) [2020/3/15] If nothing else, Coinbase’s market value should rise after listing, which will further push the bull market forward, naturally , People will think of several mainstream cryptocurrency exchanges that are benchmarked against Coinbase, such as Binance, KuCoin, Ouyi OKEx, Huobi, etc. However, according to previous relevant news, these mainstream cryptocurrency exchanges have not yet listing plan. Voice | Wu Qiuping: Bitcoin is a milestone technology and financial innovation since the birth of the Internet: Jinse Finance reported that Wu Qiuping, an associate professor at the Information Network Center of the Party School of the Guangzhou Municipal Party Committee, said that Bitcoin is a milestone technology and financial innovation since the birth of the Internet. Of course, many people learn about the technology of "blockchain" through "Bitcoin", but in fact, Bitcoin is not equal to blockchain. The blockchain is essentially a trust mechanism. Through the decentralized bookkeeping method, machine trust is established and the trust mechanism of modern society is reconstructed. This is also the most essential and core connotation of the blockchain. The blockchain is the ledger of Bitcoin, and the ownership and transaction records generated by Bitcoin at any time are recorded in the ledger of the blockchain. [2019/12/24] However, the encryption market has always been a market full of changes, and sometimes "it is honest to say that you don't want your body", so don't be surprised if a cryptocurrency exchange follows Coinbase and chooses to list. Different from Coinbase, the top cryptocurrency exchanges have basically issued their own platform coins, and most of the platform coins are in the hands of the exchanges themselves. They can use the platform coins as cash flow for investment to increase operations In terms of flexibility, at the same time, the value-added part of the platform currency can be calculated as profit to improve the profitability of the exchange. In this case, once the "listing effect" ferments, this positive trend will undoubtedly be passed on to the platform currency, and form an immeasurable positive impact, thereby further promoting the rise in the value of the entire platform currency market. Voice | Du Xiaoman Financial Blockchain Director: Libra should be regarded as the third milestone in the blockchain industry: According to Netease Business Report, on August 1, at the Economic Forum - "China Economic Report - Libra: Digital The future of currency is still Pandora’s Box?” In the roundtable discussion session, Li Feng, head of Du Xiaoman’s financial blockchain, thought that when he first learned about Libra, he wondered why Facebook would press the blockchain? Related to Zuckerberg's personal experience, among these Internet CEOs, only Zuckerberg is relatively young, and the others are relatively old, so he has a stronger acceptance of blockchain and digital currency. It is speculated that he may want to use this thing to find a new growth point for the company, or a new potential force point. Perhaps from the perspective of the company, there is no need to over-interpret it, but from the perspective of the entire blockchain industry, Libra should be regarded as the third milestone in the blockchain industry. From Zuckerberg’s own perspective, it is not so Greatness, or not so selfless, may just promote the development of the blockchain industry by the way, and find the next growth point for the company, because after all, the company is for profit, and there is a lot of money in the long run, not for two or three years. What to achieve, five to ten years must be done for the benefit of the company. [2019/8/7] In fact, the listing of Coinbase is estimated to be one of the largest new listed companies in the technology industry in 2021, and it will also have a huge positive impact on cryptocurrency market investors and blockchain technology supporters. Since the news came out, it has been a major positive for the entire cryptocurrency exchange industry, especially the centralized cryptocurrency exchange (CEX). After all, a leading cryptocurrency exchange will be directly listed and will bring a benchmarking effect. Sheng Songcheng: Whether digital currency can become a milestone will take time to prove: On June 1, the "2018 China Financial Innovation Forum" opened in Beijing. Sheng Songcheng, counselor of the People's Bank of China and director of the Survey and Statistics Department, said at the forum that whether digital currency can become the third milestone in the history of currency development will take time to prove everything. Sheng Songcheng believes that the central bank's research on digital currency is actually forced out by virtual currency. Now everyone has realized that virtual currency is not currency in essence, and it cannot replace currency. Major countries in the world have already started from the point of view of currency. Negating the point that virtual currency is currency, it is necessary to consider whether it is necessary to issue so-called digital currency. [2018/6/2] On the other hand, "traditional" centralized cryptocurrency exchanges are not inferior to Coinbase. From the perspective of trading volume, the 24-hour trading volume of exchanges such as Binance, Huobi and KuCoin all exceeds Coinbase. From the perspective of profitability, Binance’s profit in 2020 is between 800 million and 1 billion US dollars; Huobi’s 2019 revenue is about 680 million US dollars, and according to the KCS destruction data released by Kucoin in February this year, it can be roughly estimated The revenue of KuCoin in February was about 11.9 million US dollars, and the annual revenue was about 200 million US dollars. Generally speaking, in the case of comparable overall strength, these cryptocurrency exchanges may usher in a wave of leapfrog development with the help of Coinbase, the most direct effect that can be seen so far is to benefit the platform currency, because from the platform currency In terms of market value, there is still a certain distance from the market value of Coinbase, but the gap is not a "bad thing", which means that even though the platform currency is currently rising fiercely, there is still a lot of room for growth. Next, let's take a look at the recent performance of the top cryptocurrency exchange platforms (data source Coingecko, data extraction time: 14:33, April 13, 2021): People will say that a picture is worth a thousand words language, but sometimes the data can be understood at a glance. From the latest data in the table above, it can be seen that among the top cryptocurrency exchange platform coins, KuCoin’s KCS has the highest 14-day increase, followed by BNB, OKB, and HT. Frankly speaking, the performance of KCS is indeed impressive, because its recent market performance has successfully surpassed the "three major exchanges" of traditional cryptocurrencies. In fact, as early as the beginning of this year, KuCoin set "development of KCS" as one of the main lines of business development. Johnny LYU, CEO of the exchange, also made it clear that KCS will be regarded as a flagship product (rather than just a token) ), and there have been several rounds of discussions within KuCoin on the new product and operation plan of KCS, aiming to build KCS into a key to open KuCoin’s ecology and also a key to KuCoin’s decentralized financial services in the future. Ecological tokens and the future governance token of the KuCoin community. According to Johnny LYU's plan, KCS's market value will enter the top 30 or even the top 15 in the world within 2-3 years (it is 98th when this article is written). For now, KuCoin is making steady progress according to its plan. The recent rise of KCS surpassing the platform tokens of the "three major exchanges" is the best proof, and it also represents the huge development potential of the exchange. It is worth mentioning that KCS is also one of the earliest platform coins to establish a relationship with NFT. KuCoin launched the NFT trading area as early as October last year, and donated 100,000 KCS to "DeFi Lego" Dego to jointly mint NFT Mining carts and carry out NFT mining activities. With the upsurge of the NFT market, I believe that with the help of KCS, more room for imagination can be opened up. Is listing the only direction for the development of "traditional" centralized crypto exchanges? Obviously not, especially in the field of cryptocurrency, the concept of "Satoshi Nakamoto" is to build a global ledger that records the truth and subvert the monopoly of centralized institutions. From this point of view, listing this matter seems to be somewhat contradictory to the original intention of cryptocurrency. But at least for now, listing is not the only direction for the development of "traditional" centralized cryptocurrency exchanges. (Interestingly, Coinbase also mentioned Satoshi Nakamoto's address in the prospectus form. According to Brian Armstrong, CEO of the exchange, this is just to show respect to the founder of the encryption economy when it goes public, as the first Listed cryptocurrency exchanges also hope to express their recognition of "Satoshi Nakamoto".) In fact, some cryptocurrency exchanges have begun to deploy public chains and DEXs, such as Binance's BSC and Huobi's Heco , and KuCoin also recently announced that it will launch the KuCoin Community Chain (KCC), which is a high-performance and decentralized public chain developed based on the source code of Ethereum. The V1 version will be launched in the second quarter. As the only core fuel and universal token of the KuCoin community chain, KCS, the KuCoin platform currency, can be used in scenarios such as gas fee payment, which also injects more vitality into the improvement of the value of KCS. Listing is indeed a way to quickly raise funds, but it exists more in the traditional field. Compared with cryptocurrency exchanges that can issue platform coins, the financing models are more diversified. Although Coinbase is "the first to eat Crab people”, but from the perspective of the entire cryptocurrency industry, at least at this stage there will not be too many exchanges to follow up. Conclusion It is undeniable that the smooth listing of cryptocurrency exchanges has more advantages than disadvantages. At least it shows that this kind of "exchange" for trading digital assets has been recognized by the mainstream financial market, which has further increased the trust of users and the industry, and then attracted more People explore the cryptocurrency market, and finally realize the mainstreaming of cryptocurrency. On the other hand, since the listing of US stocks must be approved by the US Securities and Exchange Commission, this means that the door has been opened to cryptocurrency exchanges from a regulatory perspective. If Coinbase performs well after listing, will there be more exchanges in the future? A broad road worthy of attention. For leading cryptocurrency exchanges such as Binance and KuCoin, it is unlikely that they will follow Coinbase to list in the short term, but it does not mean that they will not choose to list in the future. Of course, even if these top cryptocurrency exchanges will not be listed in the near future, they can still use the "dongfeng" of Coinbase's listing to promote their own business development. After the listing of Coinbase, can the "traditional" centralized cryptocurrency exchange usher in a new wave of leapfrog development? Let's wait and see.

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