2024 Presidential Election
19h
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Uh oh: President Trump leads Biden 49% to 43% in a two-way race.
Tech Industry
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Google eng bar is quite high
India
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Why is it so G*damn difficult to move money out of India
Tech Industry
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How’s capitalism going?
AMA
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I have worked at TikTok US core tech for 3 years. AMA.
My knowledge is limited, so don't get all triggered and start attacking me. Afaik Coinbase is an exchange / broker for trading crypto currency and other such things. They charge very high fees but other competitors like crypto.com do it for free. So they are rapidly losing market share. https://www.barrons.com/articles/coinbase-coin-market-share-trading-volumes-51649779978 What's the plan here, do they have an alternative business model or some plan to keep the trading revenue flowing. Otherwise they are looking more like blockbuster at the moment.
Coinbase Cloud and SaaS products
That actually assumes ppl use crypto for currency and not as an asset class for gambling/store wealth. That's a huge bet without any real evidence of it happening
This is exactly the bet CB is making. It’s in the investor letters. There’s a three pillar strategy: 1. Crypto as investment. Doing what they mostly do today, serving a custodial role. You could call this being the Fidelity of crypto. 2. Crypto as a financial system. This is the card product, this is crypto loan products, this is crypto payments. You could call this being the American Express or PayPal of crypto. 3. Crypto as a platform. This is where things get interesting. This is Coinbase Cloud, this is PaaS and SaaS offerings, this is making a bet on Web3 turning into something more than a buzzword. You could think of the goal here as being the “AWS of Web3.”
It’s not like crypto.com has gained some kind of competitive edge here by giving stuff away for free
Isn't it like Robinhood vs Schwab.
They could start focusing on portfolio management, performance and tax strategy. There’s a huge gap in good solutions to track investments across other wallets: coinstats and CoinTracker are example of companies trying to get after some of that market. In my opinion neither one really does it well.
They are trying to become Vanguard or Fidelity of crypto.
Everyone needs to innovate to stay in business. They should target a bot-like feature since most crypto bros are techy, they can configure ways to gamble better lol
I work in the crypto industry, and i sort of agree. Coinbase doesnt have a defensible moat, or sticky platform. Exchanges dont hv network effects, and a wave of great competition is coming from all directions. There are other core crypto platforms that are far more dominant than coinbase.
This is from their shareholder letter
We want to look forward not backward
So literally the opposite of sound investment advice?
Trading Fees Card interchange fees Interest on cash balances / interest skimming on crypto balances Lending Probably dabble in some institutional versions of the above & institutional custody, maybe Basically like any other bank/brokerage. There’s clearly room for several/many to exist based on the equivalent old school finance ecosystem. But the business is shockingly non-novel, which surprises people being that it’s a “crypto” company.
Trading fees -- makes sense. Card fees w,/ interchange -- just crypto ppl don't spend crypto for coffee. So I'm not at bullish Cash balances: possible profit, but domt know if it's order of magnitude of trading fees
Card interchange fees meaning anytime someone swipes their coinbase card, regardless of which balance they’re spending. Standard way any bank makes money on the cards they issue to customers.