UNI to $200 - COINBASE Q1 Earnings show Insane Profitability
Updated
COIN Q1 2021 Earnings - reported April 6th after closing bell
Before you say moon boy - please hear me out. Coinbase (COIN) just announced 1st Q 2021 Earnings and they were absolutely mind bogglingly spectacular... I mean absolutely absurd. Revenue / EBITDA / Net Income smashed any expectations. Q1 2021 Revenue came in at 1.8B / EBITDA 1.1B / Net Income 800M.
COIN generated more revenue in a single quarter than it produced in all of 2020... let that sink in for a bit.
Link to COIN Q1 Earnings Results
Why is this bullish for UNI?
COIN will list on NASDAQ on April 14th in a Direct Listing IPO and will begin trading with live prices which will immediately inform all market participants what the value will be. My view is that COIN will likely IPO at 100B market cap and will likely double in value to 200B in market cap on the same day - a 100% return in a day.
The average tech IPO lists at 24x P/S - if we're conservative we can take a forward twelve months view including Q1 Actuals. If we do this we get nearly 200B market cap. COIN could legitimately trade at double whatever price it initially lists at and it would imo be a fair price to pay considering the growth of COIN's Revenue / EBITDA / Net Income. Most tech IPOs aren't even profitable on day 1. COIN is massively profitable.
Now, getting to UNI - this relates directly to UNI as UNI is a direct comp to COIN. I know that one is a CEX and the other is a DEX, but they provide the same function at the end of the day which is provide users the ability to trade, purchase, and invest in cryptocurrencies.
UNI imho has the edge in cryptos as nearly >500 coins are listed on UNI while COIN is limited in what it can list and will have greater scrutiny going forward being under the SEC / FINRA greater regulatory framework.
At any rate, UNI's current market cap is ~16B. If COIN lists at 100B and then subsequently trades up to 200B market cap then imo UNI should be worth at least half the value of COIN at a very minimum!
UNI already does more exchange volume than COIN and has more listed coins by a large margin. The only thing COIN has over UNI is that COIN has a larger asset base with nearly
90B of institutional funds sitting in custody. The comparison to make with UNI, and it's not perfect, is the Total Value Locked (TVL) or staked / vaulted in UNI which has been rising exponentially. A week ago this was at 4B. Today that value is north of 6B. This could realistically grow to over 50B by June / July.
Despite the higher ETH fees, UNI continues to outpace COIN in daily volume which is impressive to say the least. It's very apparent that there are some massive players operating on UNI - from family offices to large Investment Banks. This is an important sign that UNI's trading platform offers superior performance and is a sign of things to come for anyone holding UNI as it will continue to outcompete as the majority of interesting projects are still forks of ETH.
Consider that 50% of the top 10 coins by market cap are running the ETH protocol or are forks of ERC-20.... ETH, BNB, USDT, UNI, LINK. This is important as the majority of the MOST successful projects are running ERC-20 and this is precisely what UNI allows to trade on its platform. I'm sure one day when atomic swaps are a thing or another layer 2 upgrade is incorporated - UNI will eventually offer non-ERC-20 coins but for now it's not really that necessary considering that there are still tons of intriguing opportunities in the ERC-20 space.
Conclusion
All things considered, if COIN lists at 100B then trades up to 200B based on my fundamental view, UNI should at least be worth half of what COIN is worth at a minimum - this would put UNI at $191 / share
Before you say moon boy - please hear me out. Coinbase (COIN) just announced 1st Q 2021 Earnings and they were absolutely mind bogglingly spectacular... I mean absolutely absurd. Revenue / EBITDA / Net Income smashed any expectations. Q1 2021 Revenue came in at 1.8B / EBITDA 1.1B / Net Income 800M.
COIN generated more revenue in a single quarter than it produced in all of 2020... let that sink in for a bit.
Link to COIN Q1 Earnings Results
Why is this bullish for UNI?
COIN will list on NASDAQ on April 14th in a Direct Listing IPO and will begin trading with live prices which will immediately inform all market participants what the value will be. My view is that COIN will likely IPO at 100B market cap and will likely double in value to 200B in market cap on the same day - a 100% return in a day.
The average tech IPO lists at 24x P/S - if we're conservative we can take a forward twelve months view including Q1 Actuals. If we do this we get nearly 200B market cap. COIN could legitimately trade at double whatever price it initially lists at and it would imo be a fair price to pay considering the growth of COIN's Revenue / EBITDA / Net Income. Most tech IPOs aren't even profitable on day 1. COIN is massively profitable.
Now, getting to UNI - this relates directly to UNI as UNI is a direct comp to COIN. I know that one is a CEX and the other is a DEX, but they provide the same function at the end of the day which is provide users the ability to trade, purchase, and invest in cryptocurrencies.
UNI imho has the edge in cryptos as nearly >500 coins are listed on UNI while COIN is limited in what it can list and will have greater scrutiny going forward being under the SEC / FINRA greater regulatory framework.
At any rate, UNI's current market cap is ~16B. If COIN lists at 100B and then subsequently trades up to 200B market cap then imo UNI should be worth at least half the value of COIN at a very minimum!
UNI already does more exchange volume than COIN and has more listed coins by a large margin. The only thing COIN has over UNI is that COIN has a larger asset base with nearly
90B of institutional funds sitting in custody. The comparison to make with UNI, and it's not perfect, is the Total Value Locked (TVL) or staked / vaulted in UNI which has been rising exponentially. A week ago this was at 4B. Today that value is north of 6B. This could realistically grow to over 50B by June / July.Despite the higher ETH fees, UNI continues to outpace COIN in daily volume which is impressive to say the least. It's very apparent that there are some massive players operating on UNI - from family offices to large Investment Banks. This is an important sign that UNI's trading platform offers superior performance and is a sign of things to come for anyone holding UNI as it will continue to outcompete as the majority of interesting projects are still forks of ETH.
Consider that 50% of the top 10 coins by market cap are running the ETH protocol or are forks of ERC-20.... ETH, BNB, USDT, UNI, LINK. This is important as the majority of the MOST successful projects are running ERC-20 and this is precisely what UNI allows to trade on its platform. I'm sure one day when atomic swaps are a thing or another layer 2 upgrade is incorporated - UNI will eventually offer non-ERC-20 coins but for now it's not really that necessary considering that there are still tons of intriguing opportunities in the ERC-20 space.
Conclusion
All things considered, if COIN lists at 100B then trades up to 200B based on my fundamental view, UNI should at least be worth half of what COIN is worth at a minimum - this would put UNI at $191 / share
Comment
Grayscale should add UNI to their spate of trusts.Comment
If everyone peppers Grayscale's twitter account with suggestions of adding UNI, it may eventually get added ... they generally use this as investor sentiment.Comment
UNI's price is rising due to the proximity of the COIN IPO ... investors are beginning to realize if COIN lists at $100-200B that UNI is severely undervalued.Comments
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