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Breaking: Coinbase confirms going public with $8 billion valuation; provides revenue breakdown

Akash Anand

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Breaking: Coinbase confirms going public with $8 billion valuation; provides revenue breakdown
Source: Unsplash

On October 26, Coinbase confirmed that the company is raising an Initial Public Offering of $500 million at a valuation of $8 billion. The news, which has been doing rounds for the past 24 hours, was finally confirmed by Ran NeuNer, when he elucidated the financial breakdown of the IPO and provided more information on Coinbase’s new move.

The valuation is predicted to be in the range of $7.2 – $8 billion, with an initial public investment of $500 million. The IPO will take place in two rounds, comprising of preferred equity and common stock. According to sources close to Coinbase, who are not part of the team right now, the IPO is predicted to beat all market predictions.

As of now, Coinbase, the largest cryptocurrency exchange in terms of users, has 25 million registered users in its fold. There is $7 million worth of cryptocurrencies, with almost 600,000 active traders on the platform every single day. Sources have also stated that Coinbase is available in over 32 countries, with a lion’s share of 75% of the total market.

CryptoTrader also spoke about the all-important revenue numbers of Coinbase that led up to the IPO. Reports show that the cryptocurrency exchange earned $90 million in the last quarter, with the record being held by the 4th quarter of 2017. Q4 for Coinbase raised an astronomical amount of $450 million following the cryptocurrency boom, which saw the price of Bitcoin [BTC] break the $19,000 barrier.

Next, the reports talked about the revenue sources of Coinbase. It stated that 80% of the total Coinbase revenue was generated by consumers, and 15 percent was from Coinbase Pro, which is the institutional investor aspect of Coinbase. The remaining 5% of the revenue has come from other miscellaneous sources, stated the reports.

Ran NeuNer also teased users and investors by stating that Coinbase is rumored to start a custodian solution, with many more projects in its developmental pipeline. NeuNer also spoke to Adam Draper, one of the initial investors in Coinbase, who has put in $10 million into Coinbase’s latest IPO.

Draper was of the opinion that Coinbase CEO, Brian Armstrong, was going to make Coinbase the biggest company on the planet, because of the mantra “at some point in time, the entire world has to be on one financial infrastructure, and Coinbase will be that exact platform”.

Draper also stated that there was a demand to exit the market right now but he would rather stay in and invest more. He further added:

“I honestly believe Coinbase will be one of the first ten companies to reach trillion dollar valuation.”





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Facebook’s Libra is a double edged-sword, but will benefit Bitcoin, says Caitlin Long

Priya

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Facebook's cryptocurrency Libra is a double edged-sword, but will benefit Bitcoin [BTC], says Caitlin Long
Source: Unsplash

On 18 June, the world’s biggest social media platform, Facebook, introduced its new cryptocurrency, Libra, set to launch in the first half of 2020. The coin that would have its own blockchain will be backed by several sovereign currencies, and these reserves would be managed by the Libra Association. The association will also be engaged in several other key activities, which would focus solely on the development of the Libra ecosystem.

Notably, the coin has brought together major players in both the financial and technology industry including, MasterCard, Paypal, and Coinbase. Despite such strong backing however, the concept of the coin was soon shot down by several influencers and government authorities.

The French Minister of Finance and Economy, Bruno Le Maire, released a statement asserting that Facebook’s digital currency becoming a sovereign currency was “out of question,” adding that “it can’t and must not happen.” Along with this statement, the Finance Minister also raised concerns about money laundering and terrorism funding and urged G-7 countries Central Bank Governors to draft a report on the new “global currency” for their meeting in July.

Further, Facebook’s cryptocurrency is also facing hurdles in its native country. Maxine Waters, Chair of the House Financial Services, has requested the social media giant to hit the pause button on the development of Libra, until Congress and regulatory authorities hold a discussion on the digital currency. This request was put forth mainly because of the firm’s “troubled past.”

In an interview with WhatBitcoinDid, Caitlin Long, Co-founder of the Wyoming Blockchain Coalition, stated that Libra had its pros and cons, adding that it was a “double-edged sword.” However, the blockchain evangelist continued to assert that this was going to benefit Bitcoin, stating that the social networking platform was “making cryptocurrency a mainstream word.” She added that Facebook would introduce the concept of digitally scarce money to people and that these people would look for the best cryptos that would retain the most value over time. That crypto was going to be Bitcoin, she said.

Long stated,

“This is a detour kind of like Andreas analogy, it’s the intranet before internet. We’ve even seen it in this industry, it’s blockchain not Bitcoin but people are coming full circle back around to Bitcoin. These are detours that are ultimately helpful to gaining adoption and wider support, but they’re not where we end up and I think we will end up in Bitcoin.”

Further, Long was asked whether Libra was going to be its own currency, considering it will not be pegged to a specific currency, but several fiat currencies. To this, she stated that Libra was indeed going to be a currency of its own, similar to Bitcoin. She stated that it was going to function like a “central bank,” remarking that it would be a “private version of a central bank.” Long went on to add,

“They’re going to be managing reserves against the liability. For them it will be the people who own the coins and they will be managing the reserves against that […] they are going to be marketing this in the developing world, this is going to be a developing world concept probably more than a developed world concepts […] so my guess is this is mostly an emerging market phenomenon secondarily a European phenomenon and lastly a U.S. phenomenon.”





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