April 14, 2021 will be remembered as the day crypto officially went from a fringe idea to mainstream adoption.
Coinbase – the leading cryptocurrency exchange in the U.S. – goes public today.
It will bring the next wave of investors into crypto… and send crypto prices rocketing even higher.
But why is the Coinbase IPO such a historic milestone? And should you add Coinbase shares to your portfolio?
It’s all in your Weekly Pulse video at the top of the page. It’s where I (Chris Lowe) and host Tom Beal break down the single most important market story on our radar for the week.
And if you prefer to read along, we’ve included a transcript of our conversation below.
Editor, The Daily Cut and Legacy Inner Circle
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Tom Beal: Chris, fill me in on the biggest wealth-growth strategy of the past week that we’re talking about today.
Chris Lowe: Well, Tom, we’re not really going to talk about a strategy today. But we are going to talk about a really big event in the crypto market that’s happening today. A lot of people are talking about it.
Basically, it’s the initial public offering (IPO) of Coinbase, which is a cryptocurrency exchange. Have you used Coinbase, Tom?
Tom: Yes, that’s what I use.
Chris: So, for folks who don’t know, Coinbase is a cryptocurrency exchange. You can go on there, load up some ID documents, put your debit card details up there, and start swapping your dollars for bitcoin.
It’s been in private hands, Tom, up until this week. And today, it’s going to go public. It’s going to list its shares on the Nasdaq exchange for the first time.
And it really is making a big splash because the company is just so profitable. It reported $1.8 billion in revenues in the first quarter of 2021 alone. That’s up 38% on its $1.3 billion in revenues in all of 2020. So it’s killing it.
Also, its user base is in hyper-growth mode. It’s got 56 million customers with accounts that are trading cryptocurrencies. That’s more than twice the amount of accounts that the popular online broker Schwab has. It’s just been an incredible success story.
So I thought we’d talk about why this is a tipping point for the crypto market, in general. And I also want to address whether folks watching this should buy shares in Coinbase.
Tom: It is huge news. You always bring things to my attention and to the viewers here that we can benefit from. I’m excited to hear how we can find the answers to what you just stated.
Chris: It comes from Teeka Tiwari. Teeka has been banging the drum on how what he calls “Wall Street greed” is going to take crypto mainstream. For Teeka, that’s the metric you want to look at – adoption of any new technology.
So, if we’re talking about the internet, it matters a lot whether there’s 10 million people online or 3 billion. It’s all about adoption. You can’t have amazon.com worth a trillion dollars if there isn’t a big user base. So that’s a very important point.
What Teeka has been saying is that Wall Street is looking at the revenues Coinbase is generating. Coinbase was founded in 2012. When it goes public today, it’s going to have a bigger market value than Goldman Sachs. This is one of those events where a new technology comes in and just leapfrogs over all the existing players.
Goldman Sachs was founded in 1869. It’s been trying to make that kind of money for over a century. In comes Coinbase, and it is a fee machine. Every time you trade cryptos back and forth, you’re giving a small slice of that to Coinbase.
So this is going to be a tipping point. Coinbase already has 56 million users. How do you think that’s going to grow with all of the press surrounding the IPO… when people see its shares going up? It’s just going to make a lot more people aware of crypto. And that means a lot more adoption.
Folks who don’t want to go to an exchange like Coinbase and buy crypto can just buy Coinbase shares. If you own Coinbase shares, you’re going to be getting a small part of those fee revenues. And the more people that trade crypto, the more fees Coinbase takes in. Those shares are just going to go up in value.
And also, very importantly, it’s going to open the gate for a lot of other crypto businesses that are in private hands right now, that have only started recently. It’s going to open the gate for them to IPO, for them to go mainstream.
Crypto started out on the fringes. I was going to crypto conferences. There were libertarians and computer geeks there, not guys from Goldman Sachs or venture capitalists.
Now, it’s going mainstream. We’re seeing it being woven into the fabric of the financial markets.
A question we get a lot is, “I’m worried about buying crypto. Won’t the government ban it?” Well, I don’t think so, because it’s now part of the financial markets. We no longer have the traditional financial markets and the crypto market. We’re blending them together.
So it’s a very big deal for crypto. Does that make sense, the tipping point idea?
Tom: It does. Thank you for clarifying that.
So not only is Coinbase something we can use to get bitcoin and other cryptocurrencies, but now that it will be IPO’d, we can actually invest in Coinbase, we can buy Coinbase stock. It’s like a double win, an upward spiral of bringing this to more people. I can just imagine how much their user base is going to grow, based on this amazing thing happening this week.
Chris: That’s right, Tom. I actually reached out to Teeka. I said “Teeka, what’s going on here? We’re seeing these exchanges IPO. We’re going to have a lot more ability to buy shares now, stocks, that benefit from the crypto boom. What do you think’s going to happen?”
He said, “I think this is going to boom in 2021.” Teeka is bullish on Coinbase as a trade. But the interesting thing is that he thinks decentralized exchanges will one day rain on the parade of a company like Coinbase. And I’ll explain why.
Crypto is all about this peer-to-peer interaction between people. The whole point of bitcoin is you don’t go through a bank. People can transact directly with their peers, meaning other people on the network. That is core to the whole crypto philosophy and ethos.
Coinbase is not like that. Coinbase is a company. It’s centralized. It’s not on the blockchain, which is the technology behind crypto. It’s just an old-school corporation that has inserted itself into this very profitable market.
But here’s the thing… You already have decentralized exchanges where there’s no corporation. There’s no one skimming money off in fees. Basically, if I have my digital wallet with my crypto, and you have a digital wallet with your crypto, we can just connect to this decentralized exchange. No one’s in the middle. We transact with each other peer-to-peer.
So Teeka just wants to put it on folks’ radars that this is looking like a boom in 2021. But you want to start reading and learning about decentralized exchanges.
It’s probably not a long-term holding. As I said, Coinbase doesn’t really fit in the crypto ethos, because it’s this centralized corporation. There’s new technology now that is much more in line with the crypto philosophy that can supersede it.
Tom: Yet right now, like you said, is the time. This is going to be a huge opportunity for those that are in the forefront, like you bringing it to my and the members’ attention here.
So take what Chris shared with you today, do a little research, do your due diligence, and make the proper choices. Because this is a once-in-a-lifetime type of event. Seize that opportunity to grow your wealth.
This is pretty exciting. I’m pumped. Thank you for sharing that with me, Chris.
Chris: Thanks Tom. And to wrap up, it’s going to be under the ticker symbol COIN on the Nasdaq exchange.
It’s going to be really volatile. It’s going to be hard to get in. But that’s not a bad thing because prices tend to shoot up after an IPO.
So it’s not a bad idea to let things settle down a bit and then try to buy your shares. Today is going to be a very busy, volatile day. Prices are going to be going all over the place, I suspect. So just keep that in mind.
Tom: Another great insight. Thank you for sharing that, Chris. And I’m looking forward to keeping my eye on it. You’ll probably see all this in the news, but you saw it here first at the Weekly Pulse. Thank you for bringing it to our attention, Chris.
Chris: Thanks, Tom.
Tom: If you’re still here, that means you’re not yet a member of Legacy Inner Circle. And as you just heard, Chris not only talks to Teeka Tiwari and the other experts at Legacy Research, but he has foresight to see what and why the portfolios are growing at such rapid rates. And he also shares insights with Legacy Inner Circle members that can help them basically skate to where the puck is going.
So Chris, if they’re not yet a member of Legacy Inner Circle, why would now be a great time to take a look and join us inside Legacy Inner Circle?
Chris: A lot of folks watching this may subscribe to one or a couple of advisories that we publish at Legacy Research.
Legacy is the publishing alliance behind Teeka Tiwari, Jeff Brown, Dave Forest, Nick Giambruno, Jason Bodner, Bill Bonner, Doug Casey. It’s a stable of independent, contrarian analysts, all with an incredible track record of helping ordinary folks make money in the markets.
That’s just an overview, if anyone watching this is new. Legacy is a stable of different newsletters and different newsletter analysts.
Typically, someone will subscribe to one of our advisories. It might be a crypto advisory, a tech advisory, or a commodities advisory. Legacy Inner Circle opens all of that up.
As you said, I’m looking into all the model portfolios – there’s more than a dozen of them – and I’m talking to the analysts, monitoring what they’re saying. My team and I look through everything that’s going out. And we select the most compelling money-making opportunity from the whole team.
That’s what Legacy Inner Circle is all about. Each week, we curate the ideas that are being put out there by our analysts. There are a lot of great ideas. But that’s a lot for people to go through.
I’ve spoken to people at conferences. They’re printing out newsletters. They’ve got them beside their bed. They’re worried about getting through them all. And I really understand that. There’s a lot of information coming out.
We’re trying to make that simple for people. We’re trying to do the work that maybe a lot of folks might be doing by themselves.
We read through everything. We figure out what the most compelling story is, and we bring it to our readers. That could be in crypto, it could be in tech, it could be in precious metals. We’ve covered it all – legal cannabis, the beginning of the psychedelic medicine revolution. Very early on.
Once we see that something is starting to get hot, that one of our analysts is getting very excited about it, we’ll bring it to our readers’ attention. So it’s a great way to have that radar screen for ideas that is harder to do yourself.
Tom: The wealthy have teams that do the research. Well, if you don’t have the hundreds of millions of dollars to go build your own team, Chris and his team, and the Legacy Research experts, bring to you the best wealth-growth strategies and things that are happening in the marketplace each and every week.
So click the link below. Watch the video there to learn more about what’s inside Legacy Inner Circle.
And also, Chris has put together a specific special offer for you, as a Weekly Pulse viewer, that you’re going to be thrilled with. When you see it, it’s going to be irresistible. You have everything to gain and nothing to lose. Join us inside the members’ area and also inside the iOS and Android app.
So click the link below, watch the video, check out that special offer Chris has for you. And we look forward to seeing you inside the members’ area. Thanks again, Chris.
Chris: Thanks, Tom.
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