Coinbase, a leading cryptocurrency exchange platform, has significantly shaped the digital currency landscape since its inception. As it continues to expand its services and user base, understanding its strengths, weaknesses, opportunities, and threats (SWOT) is crucial for navigating the rapidly evolving cryptocurrency market.
This analysis aims to provide a comprehensive overview of Coinbase’s current market position, highlighting its competitive advantages and identifying potential challenges. Through this SWOT analysis, we will delve into the internal and external factors that could influence Coinbase’s future growth and sustainability.
What we think: Wall Street is Missing the Forest for the Trees. They just haven’t yet grasped how big crypto may one day become. Give the suits some time. They’ll get there. But once Wall Street does realize the asymmetric bet that is crypto, they’ll do a better job pricing COIN, given the air-tight correlation between it, crypto’s total market cap, and Coinbase’s revenues.
What Wall Street Thinks: Sell (25%) Hold (40%) Buy (33%). A slight plurality of Wall Street advisors are currently recommending a hold for COIN, with an average issued 12 month price target at $80.
Disclaimer: This is not financial advice. Money Mastery is simply reporting what some Wall Street firms are telling their clients.
Coinbase’s Company Profile
| Company: | Coinbase Global, Inc. (COIN) | Equity Style: | Mid-Cap Growth |
| Industry: | Financials | Last Stock Price: | $84.47 |
| Sub-Industry (SI): | Financial Exchanges and Data | P/E Ratio: | NM (SI avg. 31.9) |
| Market Cap: | $20.2 billion (SI avg. $9.6 billion) | ROE: | -22.1 (SI avg. -23.4) |
Coinbase is a cryptocurrency exchange platform in the United States. The company provides crypto trading, custodial, and data analytics services to both retail and institutional customers. Established in 2012, Coinbase went public in 2021. The company has no formal headquarters as the entire staff works remotely.
SWOT Analysis
Strengths
Coinbase is regarded as the most established crypto exchange in the United States. And it’s this reputation that helps maintain Coinbase’s large retail and institutional customer-base. Launched in 2012, the company has had a few years head-start compared to most of its U.S.-based competitors.
Coinbase is the U.S.’ most regulated crypto exchange, and this gives certain assurances to the segment of Coinbase’s client-base that might be a bit hesitant about crypto’s untraditional nature. As a public company, Coinbase adheres to a variety of U.S. securities laws, as well as the U.S.’ Bank Secrecy Act and various anti-money laundering laws. Coinbase implements “Know Your Customer” requirements for its customers, reports customer trade data to the IRS, and works with multiple other U.S. federal and state authorities.
Coinbase is regarded as a safe crypto exchange. The company utilizes industry-recognized protection measures and has a dedicated security team that works to stop hacks and data breaches. In 2021, 6,000 Coinbase customers lost funds in a hack, but the company reimbursed these losses. Not all exchanges have the resources to do this – but Coinbase does – and that provides additional comfort to its customers.
An outsized share of crypto’s total market cap is held on Coinbase. By the end of Q2 2022,…
David learned about bitcoin in 2015 and has closely followed the crypto industry since then.
His professional interests center around bitcoin, layer-one blockchain protocols, decentralized finance, and clean energy.
An attorney by trade, David has held licenses to practice law in the State of Hawaii and in US federal courts.
