For those of us who have been in crypto trading for the last few years we already know that price swings within crypto are crazy. Often times plunging as much as 20% in a single hour or worse only to rebound again.
The one thing about Coinbase is all it's revenue as far as I'm aware is generated through crypto fees collected from trading, buying and staking within coinbase. To me this is the first big negative as to why you wouldn't want your assets in coinbase. These fees will most likely increase now in order to please stock investors.
Being that coinbase is directly related to cyprto prices and that's it the one big negative to owning coinbase stock is it doesn't freakin trade over the weekend or holidays!
While crypto is a 24/7 thing. Your stock value plumits like seriously plumits when the value of Bitcoin and crypto in general falls but your stock wont reflect this till Monday morning.
In a way you could us this to your advantage if you did want to mess around with stocks and COIN. Nearly every weekend bitcoin and crypto takes a tumble for whatever reason. Maybe since a lot of it is now tied to world stock markets?
Coinbase saw a huge sell off at the start like with any IPO. It's because people got in at low prices or simply got shares for free for being a part of the company. It's smart to sell yours as quickly as possible and then rebuy later on. When you look back at any IPO it's the same story. Heavy sell off levels out for months or years and only then does it start to increase in value again.
What I'm curious about is if COIN will pay dividends. From the looks of it they wont which kind of sucks and makes you realize this public offering is not geared towards crypto adoption but instead to simply get more people to dump their crypto to them and allow them to collect massive fees. The sad thing... It's actually going to work Unfortantlly. This is only going to continue to grow coinbases strength over the markets and crypto.
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This makes a lot of sense @bitcoinflood. Thanks for sharing your opinion. What do you think about the Coinbase Stock token which Binance has listed? Is it any different than the actual Stock?
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I have a strong feeling the US government is going to be going after Binance heavily for listing stocks like this.
But then they would probably not be able to serve US users, would that affect them in a way they would care?
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I feel bad for the people who bought the tops because it was originally suppose to be offered at $200. So I predict there will be tons of bag holders but I think it may go back up because people like Cathy Woods are buying the dip. I don't think its a good idea but if they want to hold the bags for a year or two, then its up to them.
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I have heard the CEOs have sold their shares
If that was correct
What you are saying is very realistic
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