Coinbase has released its Q1 earnings report for 2021, the first since its IPO.
According to the data, Coinbase’s net profit was $771 million, an increase of 23 times compared to $32 million in the same period last year, while net revenue reached $1.597 billion, almost almost 10 times that of last year, but Coinbase’s share price still fell sharply last night because even such data was less than the previous market expectations, which expected Coinbase’s revenue to be $1.81 billion.
Coinbase’s main revenue component still comes from trading revenue, which reached $1.54 billion, accounting for 96% of revenue, and this part of the trading revenue, and $1.455 billion of revenue from retail investors, which also accounts for more than 94%, with only 6% of trading revenue from institutions.
Such a high percentage of retail revenue is naturally related to its huge user base, which now totals more than 56 million verified users, while the number of retail investors directly involved in trading has come to 6.1 million, a figure doubled from the fourth quarter of 2020, with 8,000 institutional users and 134,000 ecosystem partners.
One might think, don’t institutions all come to Coinbase to buy coins? Why is there only so much revenue from institutional transactions? This is not surprising, because only after the transaction will the fee income be generated, and normally, only retail investors will trade frequently and generate fees, while institutional users mostly just buy and put away at once, and basically do not buy and sell frequently.
At present, the total amount of crypto assets on Coinbase platform is $223 billion, of which $122 billion assets are held by institutions and $101 billion by retail investors. It can be seen that in the assets listed institutions are larger than retail investors, the difference lies in the fact that most retail investors cannot hold them for a long time, and more than 75% of these crypto assets are bitcoin and ethereum, and how many retail investors can own a complete Bitcoin?
Coinbase expects the number of monthly trading users to be higher in Q2 2021 than it was in Q1.
Perhaps because revenue is not as good as expected, Coinbase seems to be panicking a bit, so it is also announcing at the same time that it will make some adjustments to the platform’s coin uploading policy. Coinbase will allow just-issued digital assets to go live on the trading platform in the future, i.e. it will start to make “new coins” live.
As we all know, Coinbase is relatively strict in listing coins, and most of the time, it has to measure the potential and regularity of the project itself, and will only consider listing coins after it has run stable in other platforms.
For example, the dogcoin and Shib, although their coins themselves are questionable, these two coins brought a large number of new users to the market, and Coinbase did not go online first, which is equivalent to missing this part of the user stickiness at the beginning.
Therefore, Coinbase has now also announced that it will go live with dogcoin in nearly two months time, which seems to be a remedial measure.
Back to the market, the market is still dominated by oscillations during the day today, especially after last night’s second bottoming rally. Today’s opening did not go strong at first, once running around $49,000, and now it has rebounded to near $50,000, which seems to be unconfirmed to stand firm.
From the plate pattern, yesterday is closed a cross star, which is also considered a relatively good signal, that the market began to fall, below the bottom of the buying can support the column, so this time the market decline is not as panic-inducing as before, at least most people still believe that can rise up, at present can be slightly optimistic, as long as there is a continued pullback, or you can step in some in batches.
ETH: performance is actually quite good, in the case of bitcoin and other coins today are first to backpedal, basically the opening is on smashing good sad, did not backpedal, which further illustrates the strength of ETH, after the market is good, ETH is still a quality choice.
Platform coin: The current trend of platform coin still follows the general market, but it seems that this wave of platform coin cycle has passed again, the current rebound is not strong, which is what we suggested two days ago not to chase high platform coin, because the platform coin market normally speaking is a wave of flow of probability is very high, at present, it is indeed so, but the late retracement can still be concerned.
DeFi: Today Wei’s rating sent a tweet that Uni and AAVE will be potential winners in the next phase of the market, while Sushi is currently in a sideways state and has a relatively large upside later, which coincides with our view, we also always believe that DeFi will usher in the next phase, and the DeFi plate pass will also usher in the opportunity to perform again.
DOT: DOT performance today is not too strong, but it is not bad, yesterday’s rally is fierce, but unfortunately today by the general market suppression can not catch up, on the other hand, Boka parallel chain is still in the deployment, to parallel chain deployment to reach a mature stage, it is expected to lead to a performance opportunity.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/coinbase-reports-first-post-ipo-earnings-but-shares-plunge/
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