Coinbase IPO thoughts

Investing in Coinbase itself is much more risky than bitcoin IMO. They're going public in the middle of a bull cycle which will really push the IPO price up above where it would be at almost any other time in the cycle. IIRC 96% of their revenue comes from exchange fees as recently as last Q4 and this is a business model at risk of having to increasingly compete with "free" brokerages like robin hood. You might remember how all the original online stock brokers used to charge ~$20 per trade 20 years ago when they started, but now they almost all don't charge anything. I'd expect this to happen to crypto exchanges as well. If this happens to crypto exchanges, I wouldn't want to be holding Coinbase stock.

/r/BitcoinMarkets Thread