As you know, in my previous article, it was about the date on which the coinbasin will be listed. In this article, I researched two giant crypto market giants.
Coinbase's listing plan was postponed from the end of March to April, but that doesn't affect the IPO becoming the preferred capital trading mode for companies trading crypto assets. In March alone, two more platforms surfaced listing requests on NASDAQ.
The rise in the bitcoin price had an "off-the-circle" effect. For the crypto asset trading platform, it seems like a good choice to favor the mainstream financial markets.
However, binance, viewed by coinbase as a strong competitor, has not been pulled to the list. Believing in decentralized finance, this platform still focuses on the development of the public chain and the expansion of the bait market and respectfully "opens up as the other side of the financial market of the future. Coinbase's puritanical adherence to US financial regulation rules has won the IPO opportunity.
Binance has chosen to divide and manage the crypto asset market: CEX business is distributed globally and licenses are sought in places with rules. In the dex business chain, the binance smart chain BSC, which compares Ethereum, discovers open finance.
As a representative platform for compliance, coinbase has become the windblade for the crypto asset trading platform to be listed. Binance is a more original blockchain that shows the crypto asset exchange industry another path to development.
As March ends, the two super players have shifted the format of the crypto asset exchange in different directions and are also changing the model of the global stock market. Coinbase is valued at $ 100 billion and sees binance as a powerful enemy.
According to the news agency, on March 21, the direct listing plan of the US cryptocurrency exchange coinbase will be delayed to April with the original plan of listing on the NASDAQ at the end of March.
The delay in the listing plan did not affect the market's positive outlook on coinbase value.
Prior to this, Coinbase announced on March 17 that the latest private market valuation of Class A shares was about $ 68 billion, about 12 times higher than that of Class A shares, compared to the weighted trading price of Class A shares in the first quarter of the year at $ 343.58. . in the third quarter of last year.
The total number of shares issued in S-1 form submitted to the Securities and Exchange Commission (SEC), i.e. if coinbase has issue class A common shares, class B common shares and class A common shares planned for public offering, it has 300 836 880 shares. Become. it has already made its market value in the private market above $ 115.7 billion.
Coinbase has income support below the overvalued value. Its revenue in 2020 will be around US $ 1.3 billion under the S-1 form, and US $ 530 million in 2019. Its profit will be approximately US $ 320 million in 2020, and a loss of US $ 30.4 million in 2019.
Such revenues and valuations are inevitably compared to three other well-known crypto asset trading platforms, binance, firecoin, and okex. What makes Coinbase most cautious is binance, who says we only compete with many companies on the S-1 chart. Focus on the cryptocurrency market and have varying degrees of compatibility "like binance". 」
It is not difficult to understand Coinbase's tension in terms of the camp. According to the previous statement made by Binance's founder CZ, binance's profit will be between $ 800 million and $ 1 billion and $ 577 million in 2020. Dollars in 2019.
According to the blockchain assessment, we media Wu said that coinbase's earning power is not only much lower than binance, but may not be as good as firecoin and okex. “Of course, it is not the data after the audit that will likely be exaggerated, but the data of the three major changes are being exposed by them.
In terms of revenue composition, binance's earning power is very likely to exceed the coin base.The most important source of stock market revenue is transaction fees paid by users. The number of users, tradable assets and the transaction volume of each asset determines the transaction fees.
From BTC transactions provided by both coinbase and binance, the binance transaction volume is much higher than that of coinbase. According to coingecko, a third-party data platform, binance generated $ 4.849 billion in BTC's 24-hour transaction volume. The March 30 index and coinbase was $ 1.305 billion. The first is 3.7 times the second.
Comparison of Binance and Coinbase's spot market performance
More trading pairs means a richer source of trading fees. The 295 tradable assets on Binance create 1000 trading pairs, contributing to binance more than 24.725 billion daily trading volume on March 30. Trading pairs generating more than $ 3.322 billion in daily transaction volumes During the same period, the number of visits to binance was more than 154 million and that of coinbase was 21.05 million.
Coinbase earns limited fees on the spot market for crypto assets, but what is more troublesome is that it is tightly controlled by us and cannot expand more profitable derivative trading products such as futures and options. From the spot market to derivatives trading, the global centralized trade business and has taken a large share of the market.
According to Coinecko data, on March 30, binance's 24-hour position in derivative transactions was $ 8.434 billion, and the transaction volume exceeded $ 41.455 billion. Both indicators ranked first in the list of derivative trading platforms.
Coinbase sees binance as a strong adversary in the way of its crypto asset trading platform.
Caring for adaptation has different purposes
Coinbase does not want to put more crypto assets and portfolios on the shelves as it says, "due to our regulatory status in multiple jurisdictions and our commitment to legal and regulatory compliance, we were unable to offer many popular products and services.
However, it should be noted that strict adherence to the financial regulation rules of the United States is the premise for being listed on the US stock exchange. In other words, if he wants to seek capital operation in the traditional financial market, he must follow the access rules of that market.
Like the Puritans, coinbase adheres to the bottom line of financial regulation in the United States. In addition to its anti-money laundering requirements, Coinbase does not issue Taiwan dollars, the token does not go beyond money, violating the legal requirements of the United States, and does not perform derivative transactions with too many thresholds. it finally gained the appreciation of the traditional financial market and issued IPO tickets for it. When listed directly, it will become the true "first stock of crypto assets."
Coinbase did not deviate from its goal of starting in the United States and listing it in US stocks.
Coinbase's competitor, binance, has taken another path over the past three years and has adopted a more flexible strategy for compliance. In the relevant centralized trading business, it is selectively striving for compatibility and access in the mainstream. It opens market countries and regions and barren land and expands lands where the regulatory policy of crypto assets is not clear.
In the United States, where financial regulation policy is strict, binance did not give up and set up the binance US station there.
It was recently reported on March 11 that the US Commodity Futures Trading Commission (CFTC) is investigating whether binance is enabling us to buy and sell derivatives without permission. In response to this rumor, binance said the binance.com exchange is out of service. US users, Binance US, which serves US users, has no derivative business.
CZ also tweeted about Mr. Max Baux's assistance to binance, including strategy and policy, government relations and compliance.
CZ's introduction to Max Baux
The promotion of policy resources seems to be one of binance's strategies in dealing with strong regulatory countries. In Singapore, South Korea, and Hong Kong, which gradually became open to the control of the crypto asset market, binance chose to fight for the corresponding access. license.
At least a year ago, the market thought that binance's goal was to expand the spot and derivatives markets for crypto assets with extraordinary efficiency, to dominate the stock market industry. Since 2020, binance has expanded its reach into the blockchain world beyond national. Adapting to the trend of the DFI market, binance launched the smart chain BSC. In the near future, the nodes on the chain will open one after another.
The scope of Binance's goals has expanded and CZ changed its previous decision on decentralized transactions, believing that "if we can make secure backup easier and easier to use, DEX is the future". 」
Large-scale chain building is the biggest difference between binance and coinbase, it also means that the two super exchanges will take a completely different path.
"Original Army" and "Regular Army" industry model changes
The Coinbase path is almost a replica of traditional Internet businesses - entrepreneurship, financing, and listing. Coinbase will also comply with stricter regulatory review requirements after listing.
However, there are still a number of crypto asset trading platforms and companies that go public one after another. In March this year, eToro, a very wealthy trading platform, announced its plan to merge with another company in March of this year. Another crypto asset exchange, Kraken also has the idea of consolidating and listing. Due to its low valuation, the exchange plans to hold an IPO in 2022.
The biggest beneficiaries of Coinbase's listing are shareholders. Because it is a direct IPO, its shareholders can sell their shares immediately after they start trading, without waiting for a six-month lockout period like traditional IPOs. Last week, its shareholders posted 114.9 million shares and planned to trade after they were listed. According to SEC's regulatory documents, shareholders who registered the shares for sale include investment companies such as Andreessen Horowitz and Union Square Ventures, as well as company's CEO Brian Armstrong and co-founder Fred Ehrsam.
114.9 million shares registered for sale are worth $ 40 billion, according to an average US share of $ 343.58 in the private market.
Binance, seen as a competitor by Coinbase, has nothing to do with going public. “We are not lacking in money,” our market is fine, we are very healthy and growing organically, so we do not have any IPO plans, CZ told the media.
CZ "our market" refers to BNB. If the stock is the basis of the traditional financial market to evaluate the value of the coin base, BNB is one of the indicators that binance value is being evaluated in the crypto asset market.
In the crypto asset market, the total market capitalization of BNB token, launched by binance three years ago, is $ 38 billion, ranking fourth in the market and second after BTC, Eth and usdt.
At BNB's current market price of $ 273 on binance, the eco pass has already yielded 1820 times greater returns for early investors. In fact, after defi's market scale increased sharply in October last year, binance plans. The exchange platform becomes the identity of the currency and a means of circulation of value in the chain.
BNB's price trend in the first quarter of this year
After BNB is in the BSC chain, the price goes up as the chain grows. In January of this year, BNB rose from tens of dollars to $ 375.42 on February 19. It reached US $ 18 billion in the BSC chain, became the second largest public chain after Ethereum (TVL in the Ethereum chain is US $ 62.7 billion), and BSC's TVL exceeded 1/4 of Ethereum.
As the oldest exchange to start the public chain, binance also had a show effect. Heco and okexchain, the currency ecological chain, have launched public chains that represent their ecology. Several second-tier exchanges are also raising funds to develop public chains.
It seems that global crypto asset exchanges make up two teams. The first is the "regular army" of the coin base that embraces the traditional financial market. the other is the "primary army" of the blockchain that breaks traditional development into a world of decentralized value. Chain builder Binance is obviously the second. After the listing of Coinbase, "one super and many strong" models represented by binance will emerge in the field of the domestic army.
CZ actually believes in bitcoin. The decentralized value network brought by Bitcoin believes in consensus and has a great breakthrough spirit. He encourages binance to support chain building, believing that even if there is a second-generation blockchain like Ethereum on the market, this is an attempt to "let ordinary people join finance unimpeded".
In the world of value built by crypto assets, Coinbase prefers to change the value of the traditional financial market. Like an adventurer, binance enters the blockchain forest trying to create value for the people in the forest.
Two paths, one near and one far, both goals will drag the change industry into a new situation.
Let's see what kind of a demand there will be between these two giant markets in the future.
I am waiting for your likes and comments.
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