Does the difference in return make Coinbase's investment attractive in the long run?

Coinbase announced in a blog post on January 13 that it had acquired FairX, an exchange traded under the auspices of the U.S. Commodity Exchange (CFTC).

Coinbase said the acquisition is an important step in delivering cryptocurrency benefits to U.S. retailers and consumers. Following the acquisition, Coinbase has declared its intention to deliver marketable products to FairX's existing partner ecosystem first, and then use FairX processes to deliver cryptocurrency products to all users. of Coinbase in the United States. Purchases are expected to close in the first quarter of this year.

In fact, Coinbase has put a lot of effort into complying. It has also already been approved by Germany for the cryptocurrency storage industry. Coinbase CEO Brian Armstrong said he plans to increase all legal and valid cryptocurrencies.

In addition, according to the financial report, Coinbase's total revenue for the third quarter was $ 1.31 billion, down 41.2% from the previous quarter ($ 2.23 billion). The downside is due to the periodic changes in Bitcoin trading. Tianfeng Securities noted that many indicators have improved in terms of long-term value and the company's diversification has continued. Revenue standards improved, customer contacts continued to increase, business services continued to grow, more businesses continued to improve, Coinbase Cloud membership, Coinbase Wallet and Coinbase NFT's leadership and adherence to standards continue to improve.

It should be noted that on the first day of Coinbase's listing, ArkInvest Founder and CEO Cathie Wood will purchase nearly $ 250 million of Coinbase shares. Currently, Coinbase is the fifth holder of the Ark Innovation ETF (ARKK), with around 5.3% by weight, and the second holder of the Ark Fintech Innovation (ARKF) ETF with almost 9.1%.

According to analyst and investment management analyst Ark Invest, a large-scale exchange of growth products could make it profitable for long-term investments, with Coinbase accounting for around 10% of the crypto packaging industry in 2021. In the long term, Coinbase will continue to gain market share in the packaging industry, which is expected to become rapid and truly productive growth of products, increase the volume and visibility of platform users.

Philip Gradwe, chief economist at Chainalysis, said in an email that the competition has overtaken the cryptocurrency market and that the key message of Web 2.0 is that consumers love the platform, and I don't think so. that web 3.0 will change that. Currently, no cryptocurrency platform has a customer relationship and does not exclude service providers. I expect more companies to compete to develop this platform by 2022, and Coinbase is a leader in integrating decentralized finance (DeFi) with NFTs.

Separately, Bank of America has restructured Coinbase Global Inc (NASDAQ: COIN) to buy on average, and analyst Jason Kupferberg said that Coinbase's revenue is multi-faceted and the pattern is expected to continue until 2022. He has It has also been estimated that Coinbase's subscriptions and revenue from the service will account for 16% of total revenue by 2023, and the features that make up this model may include: -be-be-be-can-be-get-get- Get-Get-Get-Get-Get-Get-Get-Get-Get-Get-Get-Get-Done Multi-stream Blockchain Reward, User Education, NFT Trading Platforms and DeFi Products. .

Sensor Tower data shows the Q4 company hopes to outperform Coinbase app and ARPU (average revenue per user) mining speeds. Analysts raised fourth-quarter ARPU estimates to $ 45 from $ 30 and sales to $ 958 million to $ 1.44 billion.