$Coinbase Global, Inc.(COIN)$Coinbase is in a tug of war between crypto bulls and bears. Its fans argue the company is building the premier platform for trading cryptos and digital assets like nonfungible tokens, or NFTs. A crypto partnership announced recently between Coinbase and BlackRock $(BLK)$ caused the former's stock to pop.

Those betting against Coinbase expect its retail trading fees -- the vast majority of its revenue -- to erode. Coinbase is burning cash as it expands and is facing more regulatory scrutiny. Even bulls say the BlackRock deal will have minimal impact on earnings. Amid a deep freeze in token prices, Coinbase posted a $1.1 billion loss in the second quarter, missing consensus estimates.

Betting against the stock has paid off, with aggregate profits of $800 million on short positions, an average 55% return this year, says Dusaniwsky. Still, he adds, "being long or short the stock mimics the volatility of the crypto market and is not for the faint of heart."

If Bitcoin bounces back, so will Coinbase stock. But trying to value Coinbase on its fundamentals is like an art critic assessing a Bored Ape NFT on its visual merits. It misses the point.