In a way, the founder is the chief scriptwriter of the business, and as the CEO of Coinbase, the number one cryptocurrency stock, brian-armstrong’s enlightening articles have often been studied by the religious version of the crypto community in the past.
On the last day of the first half of 2021, brian-armstrong issued another eloquent article “Embracing decentralization at Coinbase” via the Coinbase blog
Unlike his previous thoughts on crypto industry trends, this time Brian Armstrong focuses on the future changes of Coinbase, a crypto ship that is blowing the rudder after the frenzy of the IPO.
Short-term: Strong Results and Volatility Close Down
Coinbase’s IPO is seen as a watershed moment for the cryptocurrency industry, both as an indication that the industry has entered the mainstream and as a sign that Coinbase has passed SEC scrutiny as the first major cryptocurrency trading service provider to go public.
Coinbase was listed on NASDAQ on April 14, 2021 through a Direct Public Offering (DPO). It opened the day at $381 and closed the day at $328.28.
After the DPO, the price rose to a high of $429.54 due to heavy buying by institutional and individual investors. Based on the closing price on the first day of listing, Coinbase’s post-IPO valuation of $85.8 billion surpassed that of CME Group, the second largest exchange in the U.S. by market capitalization (approximately $74 billion).
Because Coinbase’s growth is largely driven by innovation in the crypto economy, in the short term Coinbase shares are positively correlated with the volatility of cryptocurrencies. cryptocurrencies plunged across the board on May 19, with bitcoin falling below $30,000, down 30% in 24 hours, to a new low since the end of January this year.
Bitcoin’s plunge triggered a chain reaction in the crypto market, with the overall crypto asset market sinking, futures blowing up, and the liquidation of the on-chain collateralized lending class DeFi …… all kinds of bad news followed. The accelerated triggered the round of market decline. Coinbase also fell 12% to $208 in response, a new all-time low.
Although Coinbase shares are still at an all-time low, Coinbase’s business growth has not stagnated. On May 13 Coinbase announced its first quarterly earnings report since its IPO in mid-April this year, and the strong Q1 results were a sight to behold.
For the quarter ended March 31, Coinbase reported net profit of $771 million, up 23 times from $32 million a year earlier, while Coinbase’s first quarter net revenue was $1.597 billion, up sharply from $179 million a year earlier. . In other words, 2021Q1 has already covered last year’s full-year revenue.
In terms of revenue sources, $1,455.2 million came from retail investors, compared to $162 million in the same period last year, and $85.4 million from institutional investors, compared to $10 million in the same period last year. Institutional investors were up steadily and retail investors grew significantly.
Kenneth Hill, an analyst at Loop Capital, has a fair view of Coinbase’s post-IPO performance: the company is a “leading crypto exchange” at the “most basic level,” but at its core is “Customer acquisition” and Coinbase’s success will depend on its ability to effectively add customers and build assets on its platform.
Despite Coinbase’s short-term volatility, the visionary Cathie Wood’s Ark Invest series is plowing into Coinbase stock in conjunction with Coinbase’s strong Q1 results.
The Ark flagship fund, the Innovation ETF (ticker ARKK), recently added nearly 215,000 shares of Coinbase stock, pushing the Ark family of ETFs’ total holdings to 4.7 million shares, or about 2% of Coinbase’s fully diluted 261.3 million shares. which is now worth more than $1.19 billion based on Wednesday’s closing price.
Long Term: Building a “Decentralized” Apple
In early 2020, in the article “Coinbase CEO’s 11 Predictions for the Next Decade of Digital Currency”: Brian armstrog said: no one can predict the future with much accuracy, but one way to No one can predict the future with much accuracy, but one way to predict it more accurately is to invent it.
In the summer of 2021, in the article “Coinbase Embraces Decentralization”), brian armstrog finds three ways Coinbase is creating the future.
Go live with more compliant crypto assets
Build a crypto app DApp store
On going live with more compliant crypto assets.
Looking back at 2017, Coinbase only offered trading pairs in 4 major cryptocurrencies such as Bitcoin, Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).
As of July 2021, Coinbase already offers over 66 cryptocurrency trading pairs, from stable coins like Tether (USDt), to the smash hit DogeCoin (DOGE), to the relatively well known Polygon (MATIC), and NKN, which ranks low in market cap.
In fact, there are hundreds of tokens currently available on the market that are recognized by investors, but Coinbase, the “benchmark” for compliance, has previously had exceptionally stringent vetting standards for coin listings, resulting in not many “compliant” assets currently live on Coinbase, as Brian Armstron writes in his article, “The focus is on improving the vetting process for coin listings, but Coinbase’s goal is still to have more compliant assets live.
On crypto globalization.
Coinbase’s visionary mission is to build a global crypto economy. Coinbase sees virtual assets as a possibility for the future of global money, and it is committed to providing consumers and investors around the world with a safe, convenient, and transparent channel to trade virtual assets, and to create an innovative open financial system that is more free, efficient, and equal.
Adhering to compliance, Coinbase also actively embraces regulation. in January and March 2017, Coinbase received its bitcoin license from the New York State Department of Financial Services (DFS) and was approved to trade in ethereum and litecoin. in November 2017, the IRS required Coinbase to report users with annual transactions of $20,000 or more. In addition, to further enhance compliance, combat financial crime, and create a positive image for crypto asset trading, Coinbase hired Melissa, former global head of financial crime at Stripe, as its chief compliance officer.
Brian Armstrong exclaims in the article “Coinbase Embraces Decentralization”: We have invested a lot of effort in working with regulators in the US, UK, and EU to create great value for our customers in these regions. While maintaining partnerships with regulators in more mature markets to ensure our products comply with local regulations. From a mission perspective, this is also more conducive to Coinbase building an innovative open financial system that is more free, efficient, and equitable.
On building a DApp store for encrypted applications.
If the first 2 items are to consolidate the “existing equipment”, this one is to “explore the great voyage” – to build the encrypted “Apple “.
Brian Armstrong, who hosted a fireside chat with a16z co-founder Ben Horowitz at Coinbase, said that there are many similarities between the early Internet model and cryptocurrencies, and that history doesn’t repeat itself, but sometimes it does.
Brian Armstron mentioned in “Coinbase Embraces Decentralization”: “Decentralized Finance (DeFi), NFT, Smart Contracts, Decentralized Autonomous Organizations (DAO), to all sorts of new DApps (decentralized applications), the crypto economy is growing at an incredible rate.
Just like the Internet or mobile app stores back in the day, I think this will continue to accelerate, along with the rapid influx of developers into the space, Coinbase serves as a trusted bridge to today’s crypto economy, and we have helped people access Bitcoin in a trusted, simple way for the first time – we need to do the same for the decentralized crypto economy to do the same thing.”
Brian Armstrong further explains that Apple didn’t try to build the app itself, but instead empowered developers to build the Apple Store, and we need to do the same thing in the crypto ecosystem.
It’s easy to see that inspired by the Apple Store, Coinbase wants to offer the same type of service. In fact, looking deeper into the DApp market, billions of dollars are going through dApps every month, and innovative services are rapidly emerging.
If Coinbase does build a crypto app DApp Store in the future where users can access all of these dApps from a central location, a scary decentralized “Apple” is emerging.
As the Coinbase crypto juggernaut turns the wheel and actively embraces decentralization, there is reason to believe that as the decentralized crypto economy grows, the cost of trust and accounting in the real economy is greatly reduced without the need for review by any centralized institution.
Armstrong also concludes the article by stating, “This effort is related to our mission, which is to increase freedom in the world economy. Many of the most innovative crypto use cases are being created in DApps. By fully embracing this trend, we can put cryptocurrency in the hands of more people around the world, thereby increasing their economic freedom.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/coinbase-ceos-article-constructing-a-decentralized-apple/
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