🔵 Coinbase’s $65B+ debut


April 14, 2021

{date(‘MMMM dd, yyyy’,time(“now”))}
The Hustle

Americans have had it with toilet paper. After scrambling to buy $11B+ worth in 2020, sales in January were wiped and fell 4.3% YoY.

The big idea
Coinbase logo

Coinbase is eyeing a $65B+ public debut

Internet browser Netscape went public on Aug. 9, 1995.

In the decades since that date, the phrase “Netscape moment” has been used to signal the mainstreaming of a new industry.

Crypto-trading exchange Coinbase is going public today. With the NASDAQ setting a reference price of $65B+, it could be remembered as the crypto industry’s “Netscape moment.”

In the lead-up to this listing…

… Coinbase shared its Q1 2021 numbers; as detailed by VC Tanay Jaipuria, the results are staggering:

  • Users: 56m retail accounts and 7k institutional accounts
  • Revenue: $1.8B in Q1 2021, which was more than all their revenue in 2019 and 2020 combined
  • Market share: 11% of the entire crypto-economy trades on Coinbase, up from <5% in 2018

How is Coinbase doing so well?

Jaipuria credits the exchange’s strong results to 2 things:

  • High take rates: Coinbase gets 95% of its revenue from transactions, and its current take rate from retail investors is quite high (up to 1.5% vs. 0.05% for institutions).
  • A crypto bull cycle: The take rate is being applied to increasing trading volumes as crypto is in its 4th bull cycle

“As the price of Bitcoin has increased from $7K to ~$60K, trading volumes have increased fourfold (16X when annualized) from $80B (2019) to $335B (Q1 2021),” he writes.

But such a juicy take rate brings competition

And Jaipuria notes that a bear case for Coinbase is that its fees will fall as more players — from consumer fintech (Square, PayPal), brokerages (Fidelity), crypto exchange (Gemini, Binance) — take share.

Crucially, the fintechs and brokerages can subsidize crypto trading with other business lines.

Coinbase’s potential moat is the trusted brand it’s built.

Either way, there will be countless Coinbase winners today from what could be the largest public debut since Facebook’s $104B bonanza in 2012.

Share on Facebook Share on Twitter Send as email to a friend View on our website
Snippets
  • J&J hit a snag after federal health officials recommended pausing vaccinations so they can review 6 rare cases of blood clotting among the nearly 7m people who already received the shot.
  • Absolutely epic: Fortnite maker Epic Games raised $1B in funding at a $28.7B valuation. The most ironic investor on the list: the Ontario Teachers’ Pension Plan Board.
  • Is your company worth over $100B? Sen. Josh Hawley unveiled the “Trust-Busting for the Twenty-First Century Act” that would ban mergers and acquisitions by companies valued $100B+.
  • IBM’s IT business is spinning off. It’s called Kyndryl, and despite sounding like a variety of Benadryl for your next of kin, the new name is meant to enhance the brand’s focus on customer relationships.
  • Tourism and 2020 don’t go together, but Bandwango made it work. The Utah-based startup that connects businesses and tourism bureaus with local communities saw its customer base double in 2020 and just raised $3.1m.
  • Need a fix: Katrina Lake — the founder and CEO of Stitch Fix, the personalized clothing retailer — will step down from her role and become executive chairperson. Lake was the youngest woman to take a company public when $SFIX IPO’d in November 2017.
On fire
wood

The skyrocketing cost of lumber, explained

Wood is typically used for building roofs. Now it’s known for blasting through them.

Lumber prices are up nearly 260% since April 2020, following a perfect storm of surging demand and diminished supply.

And it all started with a simple backlog…

At the start of the pandemic, sawmills anticipated weak demand and limited production by up to 30%. To their surprise, demand turned out stronger than ever:

  • DIY boom: While the US economy shrank 3.5% in 2020, spending on home improvements and repairs grew 3%+
  • Low interest rates: In December, US new housing starts hit a 14-year high

Despite wood production hitting a 13-year high in February, supply hasn’t caught up with demand — and now ~70% of builders are raising home prices to slow demand down.

The result is a $24k+ increase in the average price of single-family homes since April 2020.

European beetles are now coming in clutch

Not those European beetles. A literal beetle infestation across Europe is boosting logging there, and Europe’s share of US lumber imports reached a record high of 13% in 2020.

Those imports are critical to the US lumber supply as British Columbia has reduced production by over a third in 5 years.

In conclusion… (We wanted to end this piece with a joke about lumber, but we just couldn’t think of any that wood work.)

Share on Facebook Share on Twitter Send as email to a friend View on our website
Podcast

Jake Paul Wants to Be the Next Jay-Z

… and he just might. Sounds crazy? He’s already built a media empire he claims has generated billions for platforms. He’s gone from social media phenom to one of the biggest names in boxing. Now he’s investing in startups. He breaks down where he’s investing on today’s My First Million.

🎧 Listen below:

SPAC News
map

If you’re a superapp and you don’t have a presence in SEA, are you even a superapp? (Source: WorldAtlas)

The largest SPAC ever

Southeast Asian superapp Grab announced plans to go public by partnering with Altimeter Growth Corp., a special purpose acquisition company (SPAC), Axios reports.

The kicker: At an equity value at $39.6B, it would be the largest SPAC ever.

Grab was founded in 2011 as a ride-hailing startup

Since then, the Singapore-based company has added a digital wallet, food delivery, and more to its offering.

As we previously detailed, 650m+ people — nearly twice the US population — live in 11 countries across Southeast Asia.

Many of these locales have underdeveloped infrastructure, which creates the space for “superapps” to thrive by providing one-touch access to finance, transportation, and logistics.

Grab — once called the Uber of Asia — is competing with 2 other players to be the region’s superapp:

  • Indonesia-based GoJek, valued at $10B+
  • Singapore-based Sea Limited, valued at $120B+

The largest SPAC ever hits…

… as US regulators are reviewing SPAC accounting practices per the Wall Street Journal. This change could make a SPAC look less financially attractive than it would otherwise be.

With SPACs raising more in the first 3 months of 2021 ($88B+) than all of 2020 ($83.4B), the extra scrutiny seems warranted.

Share on Facebook Share on Twitter Send as email to a friend View on our website

TRENDS

A 7-figure business with a $500 3D printer…

Have you read this week’s Trends report?

If you haven’t, you might have missed:

  • How one individual built a business selling dried hibiscus flowers on Amazon that brings in $101k/month
  • How a $500 3D printer can be used to build a 7-figure business with 90% profit margins
  • Which niche industry is set to 5X by 2023
  • And much more.

To read the full reports try Trends for one full week for just $1.

During your one-week trial, you’ll also get access to exclusive livestreamed lectures, our growing database of upcoming market opportunities, and our private network of entrepreneurs, founders, and investors from around the world.

All for a buck.

Read the Full Reports →

Stat of the day
chart

Higher up and further to the right (Source: PNGKey)

CEO pay was up in 2020. The Wall Street Journal crunched the numbers  for CEOs of 300+ public companies and found that the total median compensation reached $13.7m (vs. $12.8m) in the year prior.

These numbers come even as many businesses were ravaged by the pandemic.

The WSJ notes shareholder backlash against lavish pay packages is on the rise: A dozen major companies — including Starbucks and Walgreens — recently lost bids to up CEO pay.

SHARE THE HUSTLE
Hustle Cons Greatest Hits ebook

Over the years, we’ve learned… secrets.

The business secrets, tips, and tricks that have helped founders go from zero to millions — and even billions — of dollars.

Want to see ‘em? Just refer {3-referral_count} more friends to The Hustle and we’ll send you our curated set of interviews with founders from brands like Zola, AWAY, Vungle, Bonobos, and more.

Here’s a message you can use to share with your friends:

Hey! Do you read The Hustle? It’s the best daily business newsletter out there — only takes 5 minutes to read and you’ll sound like the smartest person in the room. Sign up here, it’s free: {referral_url}

P.S. You can always check your referral count here.

Share The Hustle →
SHARE THE HUSTLE
Stickers

Laptop lookin’ sparse? Water bottle lookin’… clear?

You’re only {5-referral_count} referrals away from your first Hustle swag, Sam’s Stickers. Slap a few of these bad boys on the ol’ laptop and let everyone in the coffee shop know that you know. You know?

Here’s a message you can use to share with your friends:

Hey! Do you read The Hustle? It’s the best daily business newsletter out there — only takes 5 minutes to read and you’ll sound like the smartest person in the room. Sign up here, it’s free: {referral_url}

P.S. You can always check your referral count here.

Share The Hustle →
SHARE THE HUSTLE
Pint Glass

Look at you, smarty pants. You’ve already shared The Hustle with {referral_count} friends and enemies.

But hey, just because you’re a business nerd doesn’t mean you can’t enjoy a cool bevvy. Get {10-referral_count} more referrals and we’ll send you a pint glass etched with The Hustle logo.

Anyway, here’s a message you can use to share with your friends:

Hey! Do you read The Hustle? It’s the best daily business newsletter out there — only takes 5 minutes to read and you’ll sound like the smartest person in the room. Sign up here, it’s free: {referral_url}

P.S. You can always check your referral count here.

Share The Hustle →
SHARE THE HUSTLE
Ambassador Rewards

You’re only {15-referral_count} referrals away from earning our signature dad hat meant for ladies, gents, and dads alike to show folks they’re in the club.

Here’s a message you can use to share with your friends:

Hey! Do you read The Hustle? It’s the best daily business newsletter out there — only takes 5 minutes to read and you’ll sound like the smartest person in the room. Sign up here, it’s free: {referral_url}

P.S. You can always check your referral count here.

Share The Hustle →
SHARE THE HUSTLE
Always be Hustlin' tee

You’re close to the most coveted item in Hustle-land: The Always Be Hustlin Tee.

The fabric? Luxurious. The cut? Relaxed, yet refined. The message? Indisputable.

Share this link with {25 – referral_count} more of your friends to get the goods:

{referral_url}

P.S. You can always check your referral count here.

Share The Hustle →
SHARE THE HUSTLE
Hustle Hoodie

Damn, you’re on a roll. You’ve got the pint glass. You’ve got the hat. It’s time to complete your collection, don’t you think?

Get {50 – referral_count} more referrals and we’ll send you our favorite piece of Hustle swag: The Startup Sweatshirt. Slipping into this piece of fleece might just transport you to Silicon Valley (or maybe somewhere better, your pick).

Share this link to get the goods:

{referral_url}

P.S. You can always check your referral count here.

Share The Hustle →
SHARE THE HUSTLE
Trends Screenshot

Hey, we see you. You’re out there spreading the gospel of The Hustle like it’s nobody’s business. Seems like you might be ready for a little more…

Get {100 – referral_count} more referrals and we’ll slide you a free subscription to Trends.

And no, this ain’t an ad. We just think you’re the kinda person who would thrive in our top-tier community (it’s usually $299) full of founders, investors, and builders (AKA ambitious, no B.S. business folks like you — and enjoy our premium research and content.

Share this link with {100 – referral_count} more of your friends to get the goods:

{referral_url}

P.S. You can always check your referral count here.

Share The Hustle →
SHARE THE HUSTLE
Plane

If you love us so much why don’t you just marry us?

Get {1000 – referral_count} more referrals and we’ll fly you to The Hustle HQ in beautiful, downtown eastern Austin, Texas. Round-trip flight, 2 nights in a hotel downtown, and some wining and dining with The Hustle fam.

Heck, you practically work here anyway. Copy & paste this link to share:

{referral_url}

P.S. You can always check your referral count here.

Share The Hustle →

How did you like today’s email?

Get the 5-minute roundup you’ll actually read in your inbox

Business and tech news in 5 minutes or less

100% free. We don’t spam. Unsubscribe whenever.

Psst

How'd Bezos build a billion dollar empire?

In 1994, Jeff Bezos discovered a shocking stat: Internet usage grew 2,300% per year.

Data shows where markets are headed.

And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?

We’re shooting our shot…

Start your mornings with The Daily.

Get the freshly baked 5-minute newsletter every day except Saturdays.

It’s filled with the most interesting stories on business, tech, and the internet.

And written for innovators of every industry. Sign up for the news that slaps.

If you don’t like it, unsubscribe any time. Privacy policy.

[email-submission-form redirect-to-home="true" button-text="Join Free" include-trends-opt-in="true" id="main-signup-form" fail-url="" success-url="https://thehustle.co/signup" default-source="thehustleco" default-campaign="home"]
<script type="text/javascript"> var onloadCallback = function() { grecaptcha.render('verify-your-humanity', { 'sitekey' : '6LdddrcZAAAAALyttpvOqiwQGwq5BNhgDz4tMQGE' }); }; function getCookieValue(a) { var b = document.cookie.match('(^|[^;]+)\\s*' + a + '\\s*=\\s*([^;]+)'); return b ? atob(decodeURIComponent(b.pop())) : ''; } function setHiddenFieldValue(wrappingDiv, searchParams, className, utmName, cookieName, defaultValue) { var el = wrappingDiv.getElementsByClassName(className)[0]; var existingVal = el.getAttribute('value'); var newVal = searchParams.get(utmName) || getCookieValue(cookieName); if ((existingVal == null || existingVal == '' || existingVal == defaultValue) && (newVal != null && newVal != '')) { el.setAttribute('value', newVal); } } function setHiddenFieldValueFromUtm( wrappingDiv, searchParams, className, utmName, defaultValue ) { var el = wrappingDiv.getElementsByClassName(className)[0]; if (el != null) { var existingVal = el.getAttribute("value"); var newVal = searchParams.get(utmName); if (newVal != null && newVal != "") { el.setAttribute("value", newVal); } } } function initForm() { var wrappingDivs = document.getElementsByClassName('email-submission'); wrappingDivs.forEach(wrappingDiv => { var sp = new URLSearchParams(window.location.search); setHiddenFieldValue(wrappingDiv, sp, 'funnel-source', 'utm_source', 'funnel_source', 'thehustleco'); setHiddenFieldValue(wrappingDiv, sp, 'funnel-campaign', 'utm_campaign', 'funnel_campaign', 'home'); setHiddenFieldValue(wrappingDiv, sp, 'funnel-medium', 'utm_medium', 'funnel_medium', ''); setHiddenFieldValue(wrappingDiv, sp, 'funnel-referral', 'ref', 'funnel_referral', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-a', 'a', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-c', 'c', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-o', 'o', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-oc', 'oc', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-e', 'e', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-f', 'f', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-r', 'r', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-t', 't', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-s1', 's1', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-s2', 's2', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-s3', 's3', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-s4', 's4', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-s5', 's5', ''); var error_message = getCookieValue('funnel_error_message'); if (error_message && error_message.trim() != '') { var error = wrappingDiv.getElementsByClassName('funnel-error')[0]; var prev_email = getCookieValue('funnel_email'); error_message = prev_email + " is not valid. Please try again"; error.innerHTML = error_message; error.style = ''; } }); if (false) { initCaptchaFormV2(); } } function initCaptchaFormV2() { var v3RecaptchaResponseEl = document.getElementById('recaptcha-response-v3'); v3RecaptchaResponseEl.parentNode.removeChild(v3RecaptchaResponseEl); var wrappingDiv = document.getElementById('main-signup-form'); var subForm = wrappingDiv.getElementsByClassName('email-submission')[0]; var captchaVersion = document.createElement('input'); captchaVersion.class = 'g-recaptcha hidden-input'; captchaVersion.type = 'hidden'; captchaVersion.name = 'g-recaptcha-response-v2'; captchaVersion.value = 'true'; subForm.appendChild(captchaVersion); var captchaEl = document.createElement('div'); captchaEl.id = 'verify-your-humanity'; subForm.appendChild(captchaEl); var captchaApiScriptEl = document.createElement('script'); captchaApiScriptEl.src = 'https://www.google.com/recaptcha/api.js?onload=onloadCallback&render=explicit'; captchaApiScriptEl.async = true; captchaApiScriptEl.defer = true; document.head.appendChild(captchaApiScriptEl); } function appendCheckboxes() { var optInDivs = document.querySelectorAll('.trends-opt-in'); optInDivs.forEach(el => { if (el.getElementsByClassName('trends-opt-in-checkbox').length < 1) { var checkbox = document.createElement('input'); checkbox.setAttribute('class', 'trends-opt-in-checkbox'); checkbox.setAttribute('type', 'checkbox'); checkbox.setAttribute('name', 'trends_opt_in'); var label = document.createElement('label'); label.setAttribute('class', 'trends-opt-in-text'); label.textContent = "Yes, I'd like to receive updates on market opportunities before they explode from Trends by The Hustle"; el.appendChild(checkbox); el.appendChild(label); checkbox.click(); } }) } window.addEventListener('DOMContentLoaded', (event) => { var funnel_email_cookie = getCookieValue('funnel_email'); if ( (true) && (funnel_email_cookie != null && funnel_email_cookie != '') ) { window.location.replace('/home'); } initForm(); if (true) { appendCheckboxes(); } }); </script> <div class="email-signup" id=main-signup-form> <div class="funnel-error" style="display:none;"></div> <form class="email-submission" action="https://cms.thehustle.co/api/v1/contacts/wordpress_create" method="post"> <div class="email-form-wrap"> <input class="funnel-source hidden-input" type="hidden" name="source" value="thehustleco"> <input class="funnel-campaign hidden-input" type="hidden" name="campaign" value="home"> <input class="funnel-medium hidden-input" type="hidden" name="medium"> <input class="funnel-referral hidden-input" type="hidden" name="referral_code"> <input class="funnel-fail-url hidden-input" type="hidden" name="fail_url" value=""> <input class="funnel-a hidden-input" type="hidden" name="a" value=""> <input class="funnel-c hidden-input" type="hidden" name="c" value=""> <input class="funnel-o hidden-input" type="hidden" name="o" value=""> <input class="funnel-oc hidden-input" type="hidden" name="oc" value=""> <input class="funnel-e hidden-input" type="hidden" name="e" value=""> <input class="funnel-f hidden-input" type="hidden" name="f" value=""> <input class="funnel-r hidden-input" type="hidden" name="r" value=""> <input class="funnel-t hidden-input" type="hidden" name="t" value=""> <input class="funnel-s1 hidden-input" type="hidden" name="s1" value=""> <input class="funnel-s2 hidden-input" type="hidden" name="s2" value=""> <input class="funnel-s3 hidden-input" type="hidden" name="s3" value=""> <input class="funnel-s4 hidden-input" type="hidden" name="s4" value=""> <input class="funnel-s5 hidden-input" type="hidden" name="s5" value=""> <input class="funnel-success-url hidden-input" type="hidden" name="success_url" value="https://thehustle.co/signup"> <input id="recaptcha-response-v3" class="g-recaptcha hidden-input" type="hidden" name="g-recaptcha-response" value=""> <input class="signup-email" type="email" name="email" placeholder="Your email address" required> <input class="email-submit" type="submit" value="Join Free"> </div> <div class="trends-opt-in"></div> <div submit-success> <template type="amp-mustache"> <p class="c-message c-message--success">Thank you for subscribing.</p> </template> </div> <div submit-error> <template type="amp-mustache"> <p class="c-message c-message--failed">Your submission failed. Please try again!</p> </template> </div> </form> </div>