The U.S. Securities and Exchange Commission (SEC) recognized that the cryptocurrency exchange, Coinbase submitted its listing application form S-1, which cleared the way for its direct listing on the Nasdaq. This also means that the exchange will officially become a listed company. It took Coinbase seven months of hard work to get to this point. In fact, it was rumored that it intends to go public last summer, but it was not confirmed until December 2020, and then it was revealed that it had traded in securities in the United States. The committee “low-key” submitted the S-1 form, which Coinbase publicly displayed the company’s financial performance and how it intends to use financing funds for the first time, and confirmed that the trading code for listing on the Nasdaq Global Select Market is COIN.
Let us take a look at it together.
The company’s total revenue last year was US$3.4 billion. The main source of income was transaction fees (96% of net income). The net income in 2020 was US$322.3 million, and net loss in 2019 was US$30.4 million. The number of verified users on the platform reached 43 million. The monthly trading users accounts for 2.8 million.
The 2019 and 2020 financial report data show that the revenue in 2019 was US$534 million, while the revenue in 2020 was US$1.28 billion, an increase of more than two times. If you divide the revenue breakdown by geographic location, you will find that 76% of Coinbase’s revenue comes from the United States.
As of the end of 2020, the total value of cash and cash equivalents owned by Coinbase reached US$1.1 billion, and the USDC held approximately US$48.9 million. The cryptographic support held by Coinbase includes Bitcoin (approximately US$130.1 million) and Ethereum (US$23.8 million), and other cryptocurrencies (US$34 million). When talking about Ripple, Coinbase evaded Ripple and stated that it has policies and procedures to analyze and seek to promote whether each crypto asset traded on the Coinbase platform is considered “securities” under applicable laws. The policies and procedures of Coinbase do not constitute legal standards, but represent a scoring model developed by the company, which enables Coinbase to conduct a risk-based assessment of the likelihood of certain crypto assets being considered “securities” in accordance with applicable laws. For example, in December 2020, in light of a lawsuit filed by the US Securities and Exchange Commission against Ripple Labs and its two executives, alleging that they had engaged in unregistered ongoing securities issuance through the sale of XRP, Coinbase announced the suspension of all XRP trading pairs on the website. Coinbase hopes that risk assessment policies and procedures will continue to evolve to consider case law, facts, and technological developments. However, it is important to note that the scale of assets on the Coinbase platform has reached US$90 billion! (which is crazy!)
In terms of acquisitions, Coinbase has three transactions, namely:
1. Tagomi — US$64.3 million;
2. Neutrino — US$6.4 million;
3. Xapo Insti — US$-68.3 million.
Who helped with its listing?
· Market makers: Goldman Sachs, JPMorgan Chase, and Citigroup
· Advisors: Goldman Sachs, JP Morgan Chase, Allen & Company, and Citigroup
Coinbase helps the comp protocol to provide USDC liquidity and promotes the transition of Compound to decentralized governance in June 2020. It seems that Coinbase is very optimistic about DeFi. However, it remains cautious with the related risks. The Defi project launched by NGK is a good time to buy bottoms, and the risk is not high. Now the Defi project launched by NGK-BGV has reached the lowest point in history, 103 points. It is expected that it will bottom out and rebound steadily. This is the best time to enter!