Make sure to check out the first part of this post here: Coinbase stock to 100x in 5 years. $COIN "IPO" went live yesterday [Part 1 of 2]
Robinhood just happened to be the first place I could easily get the Coinbase IPO ($COIN) yesterday. I siphoned off 10% from a couple of other positions I had open on Robinhood and scooped up a few shares of $COIN very near the bottom of the opening day chart. My average share price is just under $320. The low for the day was about $311. I think I bought at a great time, but it wasn't really intentional. It looks like $COIN launched at $381 per share on Robinhood yesterday and I probably would have bought at that price if I had known it was an option. I guess I got a little distracted writing about all of the excitement of Sovryn trading going live (my $1,000 SOV investment is already worth $9,000!!!), and I failed in securing a brokerage to buy some $COIN stock.
I had been researching the Coinbase "IPO" for the past week or so and I hadn't yet found an ideal way to participate, or even decided whether or not I was going to participate in the "IPO" or even opening day trading. However, I have remained steadfast in my desire to at least buy some Coinbase shares shortly after the initial trading activity has forged the price in the furnace of the market. But I wasn't sure how early I wanted to enter a position in $COIN.
I'm not really a big crypto or stock "trader" anymore. I accumulate crypto currencies daily, but I don't take positions and then try to sell for profits anymore. That's how I think of a "trader". I prefer to think of what I do as finding value and optimizing for growth. It's more of an accumulation strategy than a "trading" approach. Taking profits or redeploying assets has been a relatively successful strategy for me in the past. However, these days I prefer not to carve off anything from my concentrated positions, which continue to yield some of the highest rewards (and greatest losses... but mostly just that one time on Goose Finance). I think this is partially why I'm not too concerned about holding my $COIN on Robinhood for a little while longer. I'm planing to hold my Coinbase stock for at least 3-5 years. I'm hoping that Coinbase will grow from its present market cap of ~$62.9 Billion up to the $1-2 Trillion market cap range in that time. So if Robinhood pulls some shenanigans to manipulate the price in the short-term, it won't impact me too much because I won't be trying to take profits for a long time anyway. In the meantime, I'm waiting for a really solid blockchain tokenized stock-peg DEX, so I will have to tolerate Robinhood's bull crap for a while longer. It seemed like my $COIN buys were font-run pretty heavily, but whatever.
In my recent exploration of #MetaMarketCap, I discovered CompaniesMarketCap.com and I began to consider where Coinbase ($COIN) might find itself in this list in 3-5 years. Will $COIN supplant the #1 company, Apple (AAPL), with a market cap of $2.2 Trillion? I predict that Coinbase will reach the top 10 stocks by market cap within 10 years, but I'm hopeful that it could also happen within 5 years, given the right circumstances. Climbing from the present market cap of $62.9 Billion, to a projected future market cap of $1 Trillion, would multiply $COIN's market cap AND price by 15.89x. In the #DeLoreanMethod this is referred to as a "Growth Ceiling Multiplier" or GC[x]. So I'm not seeing $COIN as having 1,000x growth potential in the short term. With an existing market cap of $62.9 Billion, a 100x gain would make Coinbase the single largest company on the planet by a factor of 3. I'm not quite that bullish on Coinbase at the moment, but check back with me in 3 years. I think $COIN actually could reach a market cap of $6 Trillion. In the long-term time horizon of 10-20 years, it will definitely happen. However, I’m also beginning to see the possibility of reaching $6 Tril (100x) market cap within 5-7 years.
I'm very bullish on Coinbase for several reasons. Even though I'm a pretty ideological type of decentralist, I still acknowledge the need for Coinbase and the incredible money making machine that Coinbase is and will continue to be. Furthermore, I continue to use Coinbase to buy crypto. I try not to trade or store crypto on Coinbase. However, I do use Coinbase to convert the USD in my fiat checking account to cryptocurency. For this purpose, Coinbase serves a critical role for crypto adoption and onboarding. Coinbase is the narrow gate through which mostly everybody passes after they decide to purchase crypto for the first time. Coinbase feels convenient, safe, and stable when compared to alternative methods of converting between USD and crypto. Moreover, nobody likes the fees on Coinbase, but everybody continues to use it. Very large institutions continue to use it.
Coinbase is the narrow gate through which mostly everybody passes after they decide to purchase crypto for the first time.
Paypal and others will continue to add to the ecosystem of tools for converting between fiat and crypto, although Coinbase has established itself as the primary tool for this functionality. Generally speaking, I try to avoid centralized exchanges. I personally prefer not to use Coinbase because I choose the sovereignty of holding my own keys and I'm usually hunting for lower market cap coins that won't make it onto Coinbase until years from now. But the fact remains, that Coinbase is a playground for the uninitiated to discover the basic functionality of buying, sending, receiving, and swapping cryptocurrencies. Actually it's the safe sandbox inside of that playground. So, the Coinbase "IPO" represents a deeper level of interconnection between the world's of fiat and crypto. We have tokenized stock-pegs trading on the blockchain and we have cryptocurrency companies trading on the fiat stock exchanges. This is the space between the outstretched fingertips of these two economies.
Coinbase is a playground for the uninitiated to discover the basic functionality of buying, sending, receiving, and swapping cryptocurrencies. Actually it's the safe sandbox inside of that playground.
I put crypto on the "God" side of the Sistine Chapel meme below because of what Coinbase is about to unleash on the stock markets over the next 3-5 years. Stocks have a cumulative market cap of $90 Trillion while crypto has a total market cap of only $2 Trillion. But the price of $COIN is about to enter the thousands and split over and over again, dozens of times over the next few years. It's going to blow their minds. And there will be many others to follow... many more crypto companies will launch conventional IPOs in the coming years and it will both save and drive the fiat stock markets.
On the other side of this equation is the rapidly growing market for tokenized stock-pegs on the blockchain. I call these "mirrors" or "synthetics", but I'm not sure that's entirely accurate in every case. I don't know all of the specifics of how these instruments work. In some cases they may be backed by pools of paper stocks confirmed on the blockchain. I haven't looked into it much yet. I am about to explore Mirror.Finance (MIR) in greater depth and I own a few Injective (INJ) (Mark Cuban is invested in INJ apparently). Furthermore, I acknowledge that my dysfunctional relationship with Robinhood is hurting all of us. But I needed to get a few $COIN.
$COIN should be the next tokenized blockchain mirror if it's not already minted. Then I could sell my position in Robinhood, and hold the mirrored $COIN on the blockchain. If tokenized blockchain assets representing stocks can be minted with some collateral ensuring their legitimacy and solvency, then I would be for tokenizing 100% of the entire stock market. I'm still a bit cautious around this new asset class and I don't own any stock synthetics or stock mirrors yet. But this market is just beginning to come to early maturity. I noticed a ton of mirrored stocks on Coinmarketcap recently as I was writing, "Actually Applying the "Secret Sauce" to find deep value in micro-cap coins #FluxCapacitorHyperGrowth (Part II of III)". I saw a number of mirrored stocks with market capitalization between $5 Million and $50 Million. Mirror Protocol ($MIR) itself has a market cap of $521.88 Million.
Mirrored Amazon appears to be the top mirror with a market cap of $50.76 Million. There are a couple of dozen large cap stock mirrors rapidly gaining market cap as Mirror.Finance distinguishes itself as the first to successfully build an ecosystem around the emerging crypto market sector of blockchain stock-pegs.
However, I'm concerned that I'm not seeing anywhere near a 1:1 correlation between the price of the mirrored mAMZN ($5,115.28) on Coinmarketcap and the price of AMZN reported on Yahoo Finance ($3,379.09). I guess it's great that the blockchain asset price is higher, but I need to understand why before I would feel comfortable holding this sort of abstraction of a stock position. Actually, it looks like the Coingecko price for mAMZN ($3,404) is a lot different from the Coinmarketcap price. I've never seen this before. I wonder if this might be a glitch or error of some kind.
I'm about to conduct a much deeper review of Mirror Protocol and I'll let you know what I find! Hopefully it's all good news and they will mint a $COIN mirror that I can buy soon. I am a huge believer in DEX trading tokenized stock-pegs... as long as the pegs are collateralized in a confidence-inspiring method and their value correlates fairly precisely with the asset being mirrored. We can't have HUGE arbitrage opportunities accidentally opening up between the mirrored assets and the assets being mirrored. This sort of lapse in price correlation could crush the stock-peg sector, so I need to be sure they've got this right before I go in too deep. I had hoped to be among the first to use and adopt this technology as I've been searching the markets for value. However, I haven't been interested in taking positions in any of the existing stock pegs I've come across. A $COIN mirror could potentially change that. I'll let you know either way.
I counseled a friend earlier this week to consider withholding 50% of his Coinbase "IPO" budget to buy the dip or DCA the growth. That's how I prefer to strategize presales and IPOs these days. My friend didn't take my advice and he wishes he had. He has a Schwab account that let him sign-up for the IPO in advance. I didn't have anything like that. So, I wasn't able to execute my own advice and I'm glad that I wasn't. If I had dedicated 50% of my Coinbase "IPO" budget to buying at or before general market open, I think I would have done a lot worse. Instead, I was forced to wait and I got lucky. In the larger perspective, I think we'll all be very happy that we bought $COIN any time this week or this month. It's on the long term growth trajectory so I don't think any of us will be too disappointed.
Thanks for reading! I look forward to engaging with your comments below. Please like, tip, and subscribe if you found value in this post!
#GetInMyDeLorean #FluxCapacitorHyperGrowth #LowCapValue #MetaMarketCap #B2TF #BlockToTheFuture
Read the previous post in this series if you missed it: Coinbase stock to 100x in 5 years. $COIN "IPO" went live yesterday [Part 1 of 2]
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Block To The Future Referral Links
Coinbase (necessary evil for buying crypto with USD)
Phemex (alternative to coinbase to buy and trade crypto, barely used so far)
FTX (synthetics market for trading stock-pegs on the blockchain)
Kucoin (best of the centralized exchanges, also has USD buy option)
Bittrex (meh, okay... also has USD buy option)
Binance (used to love it, now, not so much)
BlockFi (so far so good, decent interest rates, not really an exchange though)
Robinhood (get free stock for signing up then dump Robinhood when we have a good blockchain synthetics market)
Coinseed (awesome way to buy crypto with your debit card transaction round-ups)
OpenSea (huge NFT auction site)
Internxt (cloud storage service. just started using it. will let you know how it goes. interface is a little rough with no image previews on desktop)
SALT (crypto lending platform. haven't used it much yet. will report how it goes)
Virtual Private Server Referral Links for Running Nodes
DigitalOcean (use it all the time. great value. get $100 free credit for 60 days using my link)
Vultr (also use it regularly. get $100 free credit for 30 days using my link)
Other Stuff I'm Shilling
GreenChef (really good mostly organic ingredients and easy to prepare meal subscription service. get a huge discount on your first order for using my link)
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