Quote from: bryant.coleman on August 22, 2021, 06:15:22 PM

Quote from: mojun7982 on August 22, 2021, 06:10:36 PM

Given how "small" Coinbase is compared to Binance in terms of trading volume and customer base (and probably also profitability), I was expecting the stock to drop by a lot. If you compare businesses across a sector, why should Coinbase have a higher valuation than Binance? That didn't make sense to me. Or do you know of any specific reasons why that could be justified?

That's strange. Coinbase claims to have tens of millions of active users, and most of their userbase is from North America/Europe. Binance may be having a higher number of users (but the margin may not be very large), mostly from East Asia. In terms of overall trade volume, Binance has the edge over Coinbase. Taking in to account all these factors, the valuation should be more or less similar for these two. And at this point, Binance is valued 1.5 times higher than Coinbase ($76 billion vs $54 billion).

How did you come to the conclusion that they should be roughly valued similarly?

#
Name
Exchange Score
Volume(24h)
Avg. Liquidity
Weekly Visits
# Markets
# Coins
Fiat Supported
Volume Graph (7d)
1

Binance

$28,383,863,536 (Vol 24h)

729   (Avg liquidity)

25,870,102 (weekly visits)

1397 (markets)

384 (coins)

AED, ARS, AUD
and +43 more (including all major currencies)

Coinbase Exchange

$4,006,924,944 (Vol 24h)

588 (Avg liquidity)

3,017,031 (weekly visits)

284 (markets)

94 (coins)

USD, EUR, GBP

Isn't the volume the most decisive number here? Which also correlates with the weekly visits as obviously. I would say Binance should in pure numbers be above and beyond Coinbase. Binance will now also get fully regulated. That might be the difference. But I am quite sure in terms of ROI Coinbase is nowhere near Binance.