Most Exciting IPO Of 2021! Coinbase IPO or Bitcoin + Ethereum?

hey guys how's it going it's Andy from Magoo 
investing happy Friday so I hopped on twitter this   morning and one of the first things I saw this is 
the one year anniversary of Bitcoin (BTC) dropping   50 in a single day and I thought was really 
interesting because it dropped all the way down to   3 800 and then looking at the charts right 
now I’ll throw up the one-year chart for   Bitcoin (BTC) and we're currently sitting above 
57 000. that's crazy to think about so yesterday   we talked about the Roblox IPO and if you missed 
that video I’ll link that up above right now but   with the way IPO’s go once it goes public a 
lot of the hype kind of dies down you look   for what's the next big IPO and the one that I’m 
kind of watching this is one of two IPOs that I’m   watching and I’m really excited about towards the 
end of the year with the one-year anniversary of   the Bitcoin (BTC) crash I think it's only fitting 
to talk about the Coinbase Stock (COIN Stock) IPO   it's rumored to happen the next couple months 
so what was rumored this past summer that   Coinbase Stock (COIN Stock) was looking to go 
IPO but we didn't really know for sure until   the s1 filings of the sec were released at the 
end of February so now we know what they are   trying to go IPO and while we don't fully know 
the date when it's going to happen it should   be relatively quickly and I’ll make a prediction 
based off of some cold hard facts or when I think   Coinbase Stock (COIN Stock) is going to IPO in the 
next couple months so in today's video I’m going   to be giving my analysis on Coinbase Stock (COIN 
Stock) and I went through all of the s1 files of   the SEC because when you have a publicly traded 
company you have a level of transparency that   you have to go through and when you get the s1 
filing that's the first time you get to kind of   peel back the cover and look to see how these 
private companies have been operating for the past   couple years you can see a lot of the important 
information about where they make their money and   how they've been doing for the past couple years 
so I can talk about all the important information   that you'll need to know before deciding if it's 
right for you to be investing in something like a   Coinbase Stock (COIN Stock) going forward so 
we're going to be doing this in three parts   as always part one we're going to be talking 
about Coinbase Stock (COIN Stock) as a whole   talk about how they make money and just kind 
of what to expect going forward part two we're   going to be looking at some of the numbers 
from the s1 files and talk about some of the   risks that the company itself has identified 
we talked about this yesterday with the   Roblox IPO they were worried about their 
younger demographic growing older and not   being able to replace itself so Coinbase 
Stock (COIN Stock) has gone through and   put out some risk factors I’d like to discuss 
in this video and then part three and give my   overall thoughts on Coinbase Stock (COIN Stock) 
and give it a one out of ten on the brand new   Magoo investing scale and that's just based off 
of what I believe is right from my portfolio and   I always like to say that if you disagree with me 
on a specific company I’d love to hear why because   obviously I don't know everything but I’m 
just kind of curious to see what people see   differently than I do that make you say that oh 
yeah I want to buy into this company when maybe I   don't feel the same way so first what is Coinbase 
Stock (COIN Stock) and why is it important there   are two places that you can go to get Bitcoin 
(BTC) you can set up some very expensive and   very complicated computers to actually mine the 
Bitcoin (BTC) or you can buy it from an exchange   and Coinbase Stock (COIN Stock) is the largest 
exchange in the united states when you look at the   exchanges by size it is not the largest Binance 
is much larger but from everything I could find it   was founded in china so it's not considered a u.s 
based exchange so it went from a valuation of 8   billion in 2018 to its current estimated valuation 
of 100 billion dollars based off of a private sale   that happened on the Nasdaq before it's going to 
go IPO so Coinbase Stock (COIN Stock) is pretty   large looking at their summary page from their s1 
filings Coinbase Stock (COIN Stock) has 43 million   verified users and 2.8 million monthly transacting 
users so you have Coinbase Stock (COIN Stock) is   viewed as being one of the more popular exchanges 
out there and from the information I found they   don't spend that much money on marketing at 
all mainly it's by word of mouth and people   learning about Coinbase Stock (COIN Stock) 
as being one of the most reliable places to   buy and sell cryptocurrency online so that 
is what I really like to see because we've   been seeing some companies I specifically think 
of Palantir recently that I talked about at the   beginning of this week that was spending so much 
of their money I think it was 61 of their total   revenue on marketing and so seeing a company like 
Coinbase Stock (COIN Stock) not having to spend   on marketing I’m a big fan of that and based off 
of the massive increase that we've been seeing in   trading specifically after the GameStop situation 
I’m expecting that those numbers are actually much   higher because those numbers go through December 
31st of 2020 and based off of the GameStop fiasco   that happened at the beginning of January 
I’m expecting a lot more people have gotten   involved with buying and selling stocks but also 
getting involved with cryptocurrency especially   with dogecoin dogecoin became so big I’ll put up 
the chart and I’m pretty surprised that dogecoin   has actually been able to retain a lot of its 
value that was gained I kind of expected this   be like a two-week push-up and then have a major 
sell-off but so far it's been actually retaining   its value pretty well and so people that are 
invested in that congrats on your gains because   that's actually pretty impressive so some of 
the other numbers overall they have a lifetime   trading volume of 456 billion dollars and they 
currently have 90 billion dollars in total assets   on the platform and from those transactions they 
make 96% of their revenue from the transactional   fees and from the numbers that I could find 
they make 0.75% on every transaction so this   is a company that's very dependent on scale we 
talk about companies that don't really have large   margins and so being able to increase the volume 
of transactions is how this company is going to   grow in the future and based on how bullish you 
are in the overall cryptocurrency space this could   mean that Coinbase Stock (COIN Stock) has a lot of 
potential going forward so from those huge boosts   and users in 2020 they saw their record revenue 
of 1.2 billion dollars in 2020 after posting 533   million dollars of revenue in 2019 so this is very 
expected as trading volume increases and the price   of Bitcoin (BTC) is soared from a one-year low of 
like thirty eight hundred dollars now fifty seven   thousand dollars it makes sense that they're 
making a lot more money than they had in the past   so here's some important growth metrics that 
I found for the company they saw a 34 increase   in verified users 180 percent increase in monthly 
transacting users and a 432 increase in assets on   the platform and they went from having a net loss 
of 30 million dollars in 2019 to a net profit of   322 million dollars so 2020 was a fantastic year 
for cryptocurrency overall and a fantastic year   for Coinbase Stock (COIN Stock) based off of the 
numbers that they've shown it would make sense why   company has done so well in the past year would 
want to capitalize on the success by going public   which brings in a lot of money for the company 
but they're not doing in the traditional method   of going through a traditional IPO process this 
takes a lot of time it costs a lot of money to go   through the old underwriting process and actually 
selling out the individual shares and so what   they're doing instead is a trend that we've been 
seeing a lot recently with having a direct listing   under the stock exchange we've been seeing a lot 
of companies like Palantir ticker symbol $PLTR   we had Roblox just a couple of days ago to example 
$RBLX and then we had Spotify even a couple years   ago that went public during this process what this 
means is that they're not going to be raising any   capital from it and all the shares that they're 
going to be selling are already out there and   so this won't be diluting the founder shares it 
on it's very interesting to see if this will be   a new trend that we see in companies going 
public because 2020 was the year of the   [ __ ] acquisition these are very quick ways for 
companies to get a lot of funding and go public   for companies that don't have a lot of revenue or 
that don't have the traditional requirements to   be listed on the stock exchange so for this 
year we've been seeing a trend of companies   going public via the direct listing and so it'll 
be very interesting to see if 2021 is going to be   the year the direct listing after 2020 was the 
year the space and all the years before that   have been the year of the traditional ipos so 
when is Coinbase Stock (COIN Stock) going to be   going public and i do want to mention that it's 
going to be trading under the ticker symbol $COIN   and I have some very secret information that 
I’m going to share with you guys based off of   some very smart due diligence that I did and 
so here's my process of deciding when I think   Coinbase Stock (COIN Stock) is going to IPO and so 
it took 36 days for a Palantir to go public after   their s1 filing and then it took roadblocks 
111 days to go public after their s1 filing   so you take the average of those two numbers 
and you're going to round up obviously because   why wouldn't you then you have 74 days and 
what 74 days from the day that they posted   their s1 filings it's going to go public on 
May 10th of 2021 that's a Monday so that's   going to be a date to circle on the calendar 
because it's for sure going to be that date   but in reality we really have no idea it's very 
dependent on how the company wants to operate   and how quickly some of the behind the scenes 
processes go so we've seen that it's a wide range   you have companies that takes 30 days some take 
more than 100 so I’m expecting early spring for   my prediction if you want to average out those 
two numbers and make the guess like I did so   may 10 2021 Coinbase Stock (COIN Stock) 
is going public circle it on your calendar   so let's talk about that s1 filing because as I 
mentioned this is a very interesting time it's the   first time that we're allowed to look under the 
cover and kind of see what's going on with these   companies and I read the entire s1 filing this 
morning because I didn't really have anything else   to do I was sipping on my coffee listening to some 
great music and I just kind of went through it and   found the important part so here's the important 
parts that I wanted to share with you guys   Coinbase Stock (COIN Stock) mentions that 
the crypto market cap of assets has seen a   compound annual growth rate or CAGR of 150% since 
2012.

When we've been talking about some of these   other companies we've been hearing compound annual 
growth rates for like 20 and I would consider that   as being very solid you could say that the sky's 
the limit for something like a coin base based off   of the popularity of the crypto market and just 
how much growth that they've seen in the past   couple years as I mentioned 96 percent of their 
revenue comes from transactional fees and so this   means that they are very dependent on crypto doing 
well and in the past year obviously crypto's done   incredibly well we've had the rise of something 
like a dogecoin uh we've had the significant spike   in value of stuff like Bitcoin (BTC) and ether 
and so the company came out in the risk section   of their s1 filing and I wanted to read this quote 
about future risks all of our sources of revenue   are dependent on crypto assets and the broader 
crypto economy there's no assurance that any   supporter crypto asset will maintain that's value 
or there will be any meaningful levels of trading   activity so as you'd expect Coinbase Stock (COIN 
Stock) is going to be very dependent on the cycles   of cryptocurrency that we've been seeing obviously 
the last time we had a bear market it was pretty   aggressive sell-off back in I think it was like 
winter going into 2018.

So that was a while ago   and so things aren't going to be going this well 
forever I just watched a video that was linked   by someone in my discord so thank you for that 
uh that mentions that based off of the weekly   candles the expectation that the crypto market 
should be crashing in early September and whether   that's going to happen we'll see but if that does 
happen it'll be a huge risk to something like a   Coinbase Stock (COIN Stock) that is very dependent 
on people buying and selling cryptocurrency and so   here's another quote that I wanted to read 
out from the risk section a majority of our   net revenue is derived from transactions in 
Bitcoin (BTC) and Ethereum (ETHER / ETH) if   demand for these crypto assets declines and is not 
replaced by new crypto asset demand our business   operating results and financial condition could 
be adversely affected so this is a company that   obviously is going to be very dependent on the 
success of crypto going forward and I think that   begs the question that I’ll answer in part three 
of this is it worth buying into something like   a Coinbase Stock (COIN Stock) instead of just 
buying into the actual cryptocurrencies because   if this is a company that's going to be linked 
with Bitcoin (BTC) and ether and some of the other   cryptocurrencies is it worth buying into a company 
like this could you just buy into something like   Bitcoin (BTC) or ether and just ride the wave 
we'll talk about that in part three and I’ll give   my views on that they also mentioned some risks 
about dealing with different governments and we've   been seeing some pushes from the us government 
to try to get access to crypto data because   there's been this discussion that there's a lot 
of money laundering a lot of illegal activities   happening with crypto but then you can make 
the argument that if you just look at the banks   they're also as guilty so there's just kind of 
this target on cryptocurrency because it's new   and the irs doesn't have access to as much of 
the information as they would probably like   and we've been seeing the feds take down various 
areas we saw them take down different exchanges   for money laundering and now we have the situation 
with xrp and Ripple (XRP) which was taken down i   think was like December of 2020 because it could 
set the groundwork for how the fed is going to be   looking at cryptocurrency going forward and in 
theory Bitcoin (BTC) and ether won't have the   same problems because they're acknowledged 
by the sec as being non-securities because   of their mining process whereas the xrp supply 
was capped when it was created so you have some   differences between these cryptocurrencies but 
this is going to be something to watch going   forward because the Ripple (XRP) and xrp versus 
the fed it's going to be fascinating to see what   the result of it is and see what the trickle-down 
impact is on the rest of the cryptocurrency market   but the irs wants their money and just a 
reminder that you do need to pay income tax   on any cryptocurrency gains and I will put above 
right now the thresholds that are met where they   will send you a 1099 and the irs so don't get 
hit by the irs uh they're pretty scary people   so let's talk about part three how am I feeling 
about the Coinbase Stock (COIN Stock) IPO overall   I’m a little torn obviously anything involved 
with the cryptocurrency space is going to have a   lot of volatility and risk associated with it but 
I’ve already taken on that risk because I’ve been   invested in Bitcoin (BTC) for almost four years 
at this point I got in and followed 2018 rode the   wave down and then bought on the way back up so 
I’m up significantly since my original investment   so that makes me ask the question would it 
just be easier to buy into Bitcoin (BTC) or   Ethereum (ETHER / ETH) and not have to worry about 
buying into an individual company and there are   some benefits one of the benefits of buying into 
something like a Coinbase Stock (COIN Stock) is   that you get the insurance policies that go 
along with any publicly traded company and so   this means that say your shares somehow get lost 
or someone hacks into your account and takes it   they're insured and then you have the risk of 
cryptocurrency this is probably the biggest fear   of mine of having a specific wallet is actually 
losing it and you can see plenty of examples of   here's a guy from 2013 that threw out his wallet 
that had 7 500 Bitcoin (BTC) in it that's worth   hundreds of million dollars now and the fact that 
around 20 of all of the Bitcoin (BTC) that's out   there in circulation is lost and so that's kind 
of the biggest worry is that you don't have the   insurance and the protections to protect your 
investment because it's not insured by any of   these financial backings that we have for stocks 
and bonds and stuff like that so there is a risk   associated with that but Coinbase Stock (COIN 
Stock) does try to protect its users by having 98   of their Bitcoin (BTC) and cold storage meaning 
that it's not accessible from the internet so   in theory it's much safer so overall I’m going to 
give Coinbase Stock (COIN Stock) a 7 out of 10 on   my Magoo investment scale this is something where 
if Coinbase Stock (COIN Stock) goes public and it   falls in value significantly I’d probably consider 
buying in because I think it's a very interesting   place to invest and being involved with the 
crypto market is fascinating I talked about on   this channel I made a video about places to invest 
if you're looking to take advantage of crypto boom   I’ll link that above right now and some of the 
places that I talked about were like a PayPal   or a square that are involved with cryptocurrency 
but are not as involved as something like you know   buying straight into Bitcoin (BTC) this might be a 
good in-between place to invest because obviously   it's going to be very dependent on the price 
of crypto but it's also based off of buying   and selling so if the price stays the same but 
there's still the transactions going on Coinbase   Stock (COIN Stock) will be making money even if 
the price of the underlying cryptocurrencies don't   go up so it will be something to watch and I’m 
very interested to see what you guys have to say   because this might be a quote-unquote safer way to 
get involved with crypto because you do have the   insurance protections based off of buying 
individual shares also I saw some articles   talking about the valuations of Coinbase 
Stock (COIN Stock) being a little wild   I wanted to share some of those numbers based 
off the valuation of 100 billion dollars   they'll be trading at 77 times trailing 12 month 
sales and 310 times earnings is this a red flag   no investing in tech overall you're going to have 
these crazy valuations because they're betting on   the future when you have these well-established 
companies sure I’ll look at a p e ratio to   determine if they're actually at a good deal but 
for these companies where the sky is the limit and   there's so much growth potential for the company 
I don't see this as being a crazy thing especially   with the compound annual growth rate of the 
crypto market being 150 since 2012 it makes   sense that it's trading at these crazy multiples 
and you get a tech stock and then you also make   it involved with crypto I think trading at 
these valuations isn't that unheard of so   as of right now I’m like a 7 out of 10.

I’m 
going to be very curious to see what happens with   the crypto market when Coinbase Stock (COIN 
Stock) actually goes public and to see what   people have to say about it overall we still don't 
know the date that it's going to go public it will   go public under the ticker coin but based off of 
my guess I’m going to guess Monday may 10th is the   day that it's going to go public and we'll have 
to see if that's actually going to be the case   probably not so let me know what you guys have 
to say about Coinbase Stock (COIN Stock) and   are you interested in buying into the Coinbase 
Stock (COIN Stock) IPO when it does go public   thanks for watching this video I appreciate all 
support and I will see you in the next video

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