A new IPO is coming next month.
It’s in one of the world’s fastest-growing sectors. It’s got an all-star team and product. And unlike most IPOs, it’s already wildly profitable.
Clearly you should invest in it, right?
Wrong.
Today, I’ll explain why — and tell you what to do instead.
An Exciting Deal
The IPO I’m referring to is for Coinbase, the biggest crypto-currency exchange in the U.S.
Coinbase was founded in 2012 by former Airbnb engineer Brian Armstrong and former Goldman Sachs trader Fred Ehrsam.
Initially backed by startup accelerator Y Combinator (YC) and other angel investors, it eventually raised capital from top venture funds like Andreessen Horowitz and Union Square Ventures.
In 2020, the company’s revenues reached $1.14 billion, and its profits reached more than $300 million.
Then, last week, it filed for an IPO. As Bloomberg reported, when it goes public, it will be valued at almost $100 billion.
Should you invest?
Let’s take a look.
Riding the Wave
Coinbase is riding the wave of some of today’s most important trends.
For example:
- There’s a mainstream explosion taking place in the crypto-currency markets today. Coinbase is smack in the middle of it.
- It’s part of the same “populist revolt” we saw recently during the David versus Goliath GameStop saga.
- And it’s part of the “democratization of finance” you read about here at Crowdability — where ordinary citizens are finally getting access to the same investments as the wealthy and well-connected.
So for many investors, the question becomes this:
Given its extraordinary trajectory, its profitability, and the fact that it touches so many important trends, why wouldn’t you invest in it?
The answer is simple…
Too Late to the Party
With an estimated value of $100 billion, it’s already too expensive.
To put its value in perspective, look at the Intercontinental Exchange (ICE).
ICE operates 12 global exchanges (including the New York Stock Exchange, and futures exchanges in the U.S., Canada, and Europe), as well as clearing houses, technology companies, and data and listing services.
The market cap of ICE? $60 billion — about half of Coinbase’s value.
As with any investment, the key to making profits is to buy low and sell high.
But by the time Coinbase goes public, it will be impossible to “buy low.”
You see, early-stage startup investors got there before you — well before you…
This Is How You Make 50,000x
For example, when YC invested in it, Coinbase was worth about $200,000.
And when the angels invested in it, it was worth about $2 million.
These are the investors who got in early.
The angels are sitting on an estimated return of 50,000x their money.
That’s enough to turn a tiny $500 investment into $25 million.
And because YC got in even earlier, its returns are even bigger — in fact, the numbers are so big it’s hard to even wrap your head around them.
The “Next” Coinbase
So forget about Coinbase’s IPO.
That train has already left the station.
Instead, focus on finding the next Coinbase.
In other words, the next startup that could potentially return hundreds, thousands, even tens of thousands of times your initial investment.
And over the next few days, we’ll show you exactly how to find it — and exactly how to invest in it.
Happy Investing
Best Regards,
Founder
Crowdability.com
