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Regulatory Break or Start with Coinbase Listing?



The word "Coin" symbolized coins in the past, and after April 14, this word has added a new meaning, that is, the stock code of Coinbase after listing. The listing of Coinbase is one of the two keys that can change the structure of the cryptocurrency market in 2021 (the other is the US Bitcoin ETF). Although it is not the first stock in the cryptocurrency market, Canaan Technology and Ebang International have also been listed successively , but compared to mining companies that are more equipment-oriented, it is clear that digital currency trading platforms are more representative of the cryptocurrency market. At present, the entire cryptocurrency market has extremely high expectations for the listing of Coinbase. Not only cryptocurrency investors are eager to break the circle, but institutional investors also want to test the regulatory situation, and even competitors are also eager for Coinbase to perform well after listing. Good, and by the way, increase the value of your own platform. According to the latest reference price given by Nasdaq, the reference price of Coinbase’s stock price is US$250, with a total valuation of more than US$65 billion. This valuation makes Coinbase’s price-earnings ratio reach 180 times, which is extremely rare in traditional industries . However, according to the nature of the industry in which Coinbase operates, it cannot be directly measured by the standards of other industries among listed companies. If you insist on comparison, Tesla, which is also in the "future" industry track, is the most ideal comparison object. Tesla's price-to-earnings ratio has reached as high as 1320 times. At present, various cryptocurrencies are performing well, especially Bitcoin, which has reached new highs in the past two days. This will directly promote the stock price of Coinbase after listing. Big upside. The South Korean Financial Supervisory Authority plans to formulate accounting standards related to virtual assets: According to news on September 6, Lee Bok-hyun, director of the Korean Financial Supervisory Authority, said that in order to eliminate the uncertainty of accounting treatment in the interpretation and application of the International Financial Reporting Standards (IFRS), plans to formulate Accounting standards related to virtual assets, pharmaceuticals and biology are currently being discussed on accounting standards related to virtual assets, which are currently listed in the notes to the financial statements, or will be carried out in a way of enhanced disclosure. In addition, Li Fuxian said, "If a specific company holds virtual assets, it is allowed to be recorded in notes or publicized as other publicity matters. This is the current policy direction." (News1) [2022/9/6 13:11:48] Next, let's look at it from multiple dimensions, what is the "secret" of Coinbase being valued at more than 65 billion US dollars? What impact will it bring to the entire market after listing and its future position in the market. In the past year, the cryptocurrency market has developed rapidly, and the price of cryptocurrencies has performed very well. The increase of Bitcoin has reached 700%, leading the cryptocurrency market out of an unprecedented bull market. Against this background of development, on April 6, Coinbase released its financial report for the first quarter of 2021 and its full-year forecast. The superiority of Coinbase’s financial report for the first quarter of 2021 is reflected in institutional users, institutional revenue/profit, and transaction volume. 1. User. As of the first quarter ended March 31, the number of certified users on the platform totaled 56 million, and the number of monthly transaction users (MTUs) in the first quarter was 6.1 million, a year-on-year increase of 369% and a quarter-on-quarter increase of 117%. 7 million, 5.5 million, and 4 million monthly trading users are the three levels of the capitalization level of the encryption market in 2021, which will affect the revenue level of the platform. "Beijing's 14th Five-Year Plan Period Drug Safety and High-quality Development Plan": Using Blockchain to Build a Digital Supervision Support System: Jinse Finance reported that the Beijing Food and Drug Administration recently issued "Beijing's 14th Five-Year Plan Period Drug Safety and High-quality Development Plan”, the plan proposes that during the “14th Five-Year Plan” period, Beijing will use blockchain and other technological innovations to build a digital regulatory support system covering the entire life cycle of varieties and enterprises. [2021/9/8 23:09:11] The above three data reflect how rapidly Coinbase has grown after entering 2021, which is also the main reason why major institutions have continuously increased the valuation of Coinbase after its listing. The main support of Coinbase's later performance is inseparable from its stable ecology. Currently, Coinbase’s business types mainly include two major areas. One is transaction services, which are the main source of revenue, accounting for more than 80% of total revenue. The second category is the subscription and service product category. Transaction services include: 1. Payment and collection (user transfer within the platform). 2. Investment. BTC and ETH respectively accounted for 55% of Coinbase's overall trading volume. This data may reflect that Coinbase's single dependence is too heavy, but it is actually the key to Coinbase's listing, which we will talk about later. News | Malaysian Securities Commission solicits public opinion on ICO regulation: According to bernama, the Malaysian Securities Commission (SC) has released two consultation documents to solicit public feedback on the regulatory framework for ICO and property crowdfunding. The consultation paper discusses the proposed framework, which includes issuer eligibility, the need for transparency and adequate disclosure, and the use of ICO proceeds. [2019/3/6] In addition, companies currently investing through the Coinbase platform include MicroStrategy, which holds the largest number of coins, Tesla, a world-renowned company, Meitu, the first Hong Kong-listed company to hold Bitcoin, and many other corporate institutions. In terms of institutional business, Coinbase currently leads the pack. 3. Consumption. For example, Coinbase has cooperated with Visa to launch the debit card Coinbase Card, and the underlying asset is the user's encrypted assets in Coinbase. UK users can support Visa's European merchant spending. Subscription and service products include many aspects, but most of them started in the past two years. Perhaps Coinbase realizes that there may be certain risks in all income from transaction revenue, so it is constantly developing other sections, but it is still in incubation In the short term, it cannot have much influence on Coinbase's overall revenue. The reason why the market has such expectations for the listing of Coinbase is mainly because of the huge radiation impact of the listing of Coinbase, which involves many competitors, currency prices and even the entire cryptocurrency market. Head of Bank of Finland supervision: Bitcoin does not meet the definition of official currency: Paeivi Heikkinen, head of Bank of Finland supervision, said: "Considering the legal definition of official currency, Bitcoin does not meet the definition. The instrument has to have an issuer who is responsible for its operation, at this stage it is more like a commodity.” Heikkinen said: “Finns can agree on the exchange they want to use, no one supervises or manages, no one guarantees and Its value fluctuates greatly, and this is your own risk." [2018/2/23] For some digital currency trading platforms that also want to go public, Coinbase is equivalent to a "pathfinder" role. For example, KRAKEN, another top bitcoin trading platform, was approved to be listed on Coinbase, and there was news that it might consider listing in 2022, while others such as BlockFi, MicoBT, Gemini, eToro, Bitfury, etc. have reported IPO news. Of course, the listing of Coinbase has also had a major impact on these major trading platforms, which is mainly reflected in the rise of platform coins. The logic of the market is that if Coinbase can have such a high valuation when it goes public, does Binance, which is said to be bigger than Coinbase, deserve a higher valuation? Another point that cannot be ignored is DEX (decentralized trading platform). Although most of the current DEXs have a high threshold for use and are not as convenient as CEX (centralized trading platform), their balance and decentralization characteristics are of great importance to centralized trading platforms. For trading platforms, it is a "dimension reduction blow", and the current utilization rate and transaction volume of DEX are gradually increasing, and may not always lag behind CEX, and the listing of Coinbase will also bring more attention to DEX. Wang Lijie, founding partner of PreAngel: blockchain technology should operate under supervision: Wang Lijie, founding partner of PreAngel, believes that there are very few people who can understand blockchain, but blockchain is already very hot, and people in the industry are particularly obsessed. The people who entered did not understand. The Internet has brought about the self-media era, and the blockchain is likely to bring about self-finance. He said: "After several years of development of blockchain technology, centralized institutions such as banks and insurance may be subverted. This is related to national stability, so it is not impossible to do blockchain, but to do it under supervision." [ 2018/1/27] The market is still worried about the listing of Coinbase. The current digital currency trading platform business situation is too dependent on the price of cryptocurrency, especially the rise and fall of Bitcoin. This is indeed the downside of Coinbase. But you might as well think about it, after Coinbase goes public, will it bring positive feedback to the cryptocurrency market? When Coinbase is listed, the excellent financial report and "abnormal" rate of return will make investors crazy, but when the potential of Coinbase after listing is gradually realized, more and more investors will look for the next "Coinbase", and The best place is naturally the cryptocurrency market. Coinbase is just the first fruit brewed from the soil of the cryptocurrency market. There will be more fruits waiting for traditional investors to pick, and it will also usher in the cryptocurrency market. Great attention, and this will be fed back to the currency price. All in all, as an industry benchmark for digital currency trading platforms, the listing of Coinbase indicates that cryptocurrency will enter the era of compliance development. It is a new starting point and milestone, and it is also an inevitable process for encrypted assets to integrate into traditional capital markets in the current digital economy era. 1. The place where high-quality cryptocurrency is launched. Coinbase is an old-fashioned trading platform. It has also established a good reputation and reputation in the encryption field. It has a wider audience and a larger flow than other trading platforms. When the new currency is launched, it is bound to receive more users. focus on. And when Coinbase goes public, the halo of "the only listed digital currency trading platform" has a unique influence, and the effect of the "Coinbase effect" will only be strengthened at that time. 2. The listing benchmark of the digital currency trading platform Even the most compliant Coinbase was fined by the SEC on the eve of listing because of the transaction volume fraud a few years ago, and even delayed the listing time. For the platform, the warning line is everywhere, and after the listing of Coinbase, other trading platforms can directly "copy homework". It is worth noting that not everyone can copy this "job", and choosing to go public may also mean giving up many benefits. Take Coinbase as an example. At present, Coinbase has no contract business, and its main source of income comes from the investment of BTC and ETH. This has caused Coinbase to lose a large number of contract markets, and also lost a large number of users who love contract transactions. The main reason is that BTC and ETH ETH is a non-securities pass that has been recognized by the SEC, and if it involves contract business, if the market is violent, the platform's huge amount of liquidation will also attract the questioning of the regulatory authorities. This is the "sorrow" behind Coinbase. Originally, Coinbase could increase its business volume to a higher level, but for the final listing, it had to abandon any business with regulatory crisis. This also shows the gold content-zce of Coinbase data. Even so, in the absence of other successful examples, Coinase remains the only reference point for other exchanges trying to successfully list. 3. The regulatory buffer zone of the cryptocurrency market Sooner or later, the cryptocurrency market will face a head-on confrontation with regulators, and the most watched "battlefield" is the United States. Some time ago, Coinbase, Fidelity, and Square jointly established the Cryptocurrency Innovation Council with a group of cryptocurrency companies. One of the expectations for the establishment of the council is to find a better way to face regulation, and in this Of the middle, Coinbase is undoubtedly the most symbolic. For these companies, it is very important to better deal with regulation, because most of these companies provide investment services for Bitcoin, own Bitcoin or have a foothold in the Bitcoin market. There are unfriendly or radical behaviors in the market. Among these companies, they may lose part of their assets at least, or die directly at worst. So far, the attitude of the U.S. regulators to the cryptocurrency market is not friendly, especially the remarks of US Treasury Secretary Yellen have repeatedly caused severe setbacks to the cryptocurrency market, and the Cryptocurrency Council headed by Coinbase will be in the next Played a major role in the deal. When Coinbase is listed, it is equivalent to straddling the traditional financial market and the cryptocurrency market. It is undoubtedly the best seasoning agent in the middle. It can even negotiate and formulate relevant regulations on behalf of the cryptocurrency market and regulatory authorities. At the regulatory level, strive for a more reasonable position. On the other hand, if Coinbase is successfully listed, it means that the industry will enter the next stage of "compliance development". The generalized encrypted assets and encrypted financial industry are not only accepted by the mainstream, but become the mainstream. This also means that more transparency and compliance will become the key path for the development of encrypted financial companies in the future. Listing is one of the ways to quickly build trust, and Coinbase is the only trustworthy individual after listing. Therefore, Coinbase's future It may become a buffer zone for cryptocurrency regulation. At present, the most concerned issue in the cryptocurrency market for the listing of Coinbase is whether it will have a positive impact on the industry. As mentioned earlier, the listing of Coinbase is a new chapter in the cryptocurrency market and an important channel to introduce traditional financial investors. If it is finally reflected in the price, the imagination space can be infinitely expanded.


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