BlockBeats News, February 18th, Coinbase CEO Brian Armstrong responded to the question “Why is Coinbase always misunderstood or underestimated by Wall Street?” in a social media post, stating: “I do think Coinbase is a misunderstood company. This is a classic ‘innovator’s dilemma.’ On one hand, the smartest traditional financial institutions are fully embracing the crypto industry. Five Global Systemically Important Banks (GSIBs) have started to work with Coinbase. Many large financial institutions are also hiring crypto talent. As regulations clarify, we see roughly 50% of large financial institutions actively embracing this trend. On the other hand, the other half is still lagging and resisting. The world’s most disruptive innovations have followed a similar pattern. Whether it’s Uber, Airbnb, self-driving, AI applications, or SpaceX’s impact on NASA. The crypto industry is directly disrupting Wall Street, so it’s not surprising that some on Wall Street misunderstand crypto and Coinbase. The smart will embrace it, the laggards will be left behind.”
Coinbase and the crypto industry have never been in such a strong position as they are now. For investors to achieve excess returns, they must be “early and right.” Coinbase is still undervalued, which is not yet a consensus among traditional analysts. I suggest focusing on what the company commits to doing and whether it delivers, rather than just looking at whether analyst models predict “beat” or “miss.” Additionally, our GAAP net income includes unrealized gains and losses of our held crypto assets, so one should also pay attention to adjusted net income (even in a bear market, we were profitable last quarter, with some media reports misunderstanding this).”
