The bullish case for struggling Coinbase 🤑; Binance gets audited. So what? 🤔; Is African FinTech starting to struggle? 🤔

FinTech is Eating the World, 9 December

Hey Everyone,

TGIF! Today’s issue is brilliantly tailored to end an intense week. We’re looking at the bullish case for struggling Coinbase (& why it’s interesting), Binance which recently got audited (so what?), and question whether African FinTech is starting to struggle. Let’s jump straight into the good stuff:

The bullish case for struggling Coinbase 🤑

Not good news 📰 Coinbase COIN 0.00%↑ will bring in half as much revenue this year amid the crypto winter, the company’s CEO Brian Armstrong has said, as per Decrypt.

More on this 👉 Speaking on Bloomberg TV this week, Armstrong said that last year the firm raked in roughly $7 billion and $4 billion of positive EBITDA, a measure of underlying earnings.

He added, however, that “this year, with everything coming down, it’s looking, you know, about roughly half that or less.”

We can remember that in the 2021 financial year, the crypto exchange business brought in almost $7.84B, according to its full-year shareholder letter.

What does this mean? 🤔 From first glance, the grim outlook should definitely be worrying. Coupled with decreasing trading volumes and monthly active users, not to mention the overarching crypto winter, it even makes you question whether Coinbase will be here in the next 5 years.

But there are two important things that challenge this way of thinking. In fact, they make a bullish case for Coinbase. Let’s take a look.