$Coinbase Global, Inc.(COIN)$Is coin base simply a broker? Or is it something more? 

There are many who view COIN as just another broker; just specialising in crypto. If this is the case, then the insane valuations by some analysts (case in point, one whose TP is 600USD) are just pure fantasy. But is COIN something else?

If you do some DD on coinbase you would noticethat beyond brokerage services (buy, sell and store) coinbase also allows usage of crypto (such asBTC) as a token within the cryptocurrency system, or move your owned crypto off the system to say a different wallet. Coinbase has also other nascent (and growing) operations like allowing one to stake their owned crypto, which allows the holders to lend their crypto holding and earn an interest (think: a little like a bank). There is also the element of security involved. Coinbase has thus far provided a largely secure environment by ensuring some 97% of the BTC holdings in cold storage (secure offline). So if you were to compare a traditional brokerage house (dealing with shares) to COINBASE type of cryptocurrency custodians itisn’t an Apple to Apple comparison. Such elements of security, flexibility of dealing with cryptoholdings etc. may not be easily replicated and present high barriers of entry for other burgeoning crypto exchanges. At the end of the day while coinbase’s profit margins may not reasonably be expected to be sustained in the future due to the entry of other exchanges, it is not going to be a downward spiral either. Coin’s first mover advantage will also have to be worth something. 

The question then is, at the current price is COINovervalued? Well there is no straight answer as this requires a fair bit of future cash flow projections and analysis of the crypto trading market. My personal view is that at the current trading price (300-310USD) there is still room for upside, but perhaps if you ask me this question if and when COIN hits $600 my answer then may be different. Whatever the case is, there is a future for COIN if you believe that cryptocurrency and blockchain is going to bring us into the future. 

As always do your DD. Happy to discuss.