Hi Fintech futurists -- This week, we look at: Coinbase planning to go public, and reverse engineering its economics based on publicly reported data and some educated guesses If you want to tinker with the model, download it here For more analysis parsing
I have been reviewing your model about Coinbase’s valuation. It's very interesting. And I have a question about the premise on Brokerage onramp fee (line 40).
You say: There is an additional fee generator in getting people from the banking system into the crypto account -- which can be 2% or more if users come in through a card, which we assume happens at a rate of 30%.
But in model, line 40, you take a 10% of yearly delta users (line 35). So, I understand that, in the calculation of the “total onramp fee ($MM)” you use:
Line 40 … =(F35+F37)*F26*F38/1000000*F39
Instead of:
=(F37)*F26*F38/1000000*F39
If we use (F3+F37), change the data about the delta and the number of users per year. Then the model adds 32.100 users additional to 2013, so the number of users in 2013 change from 521.000 to 553.100, and the same variation in the next years.
The next data (“Churn %”, line 36, and “% Using on ramp”, line 39), could be adjusted to obtain the result in revenue in 2017, near to $1.000 MM to validate the supposes.
Would you give me some piece of advice, or if I am wrong.
Hi Lex,
I have been reviewing your model about Coinbase’s valuation. It's very interesting. And I have a question about the premise on Brokerage onramp fee (line 40).
You say: There is an additional fee generator in getting people from the banking system into the crypto account -- which can be 2% or more if users come in through a card, which we assume happens at a rate of 30%.
But in model, line 40, you take a 10% of yearly delta users (line 35). So, I understand that, in the calculation of the “total onramp fee ($MM)” you use:
Line 40 … =(F35+F37)*F26*F38/1000000*F39
Instead of:
=(F37)*F26*F38/1000000*F39
If we use (F3+F37), change the data about the delta and the number of users per year. Then the model adds 32.100 users additional to 2013, so the number of users in 2013 change from 521.000 to 553.100, and the same variation in the next years.
The next data (“Churn %”, line 36, and “% Using on ramp”, line 39), could be adjusted to obtain the result in revenue in 2017, near to $1.000 MM to validate the supposes.
Would you give me some piece of advice, or if I am wrong.
Thank you