At nearly $12B, SBF is one of the richest person in crypto.

The contrast couldn’t be any bigger.

“Coinbase suffered a $1.1 billion net loss in the second quarter of 2022”.

“FTX grew revenue 1,000% during the crypto craze”.

I’m not a professional stock analyst, but I can read headlines.

And given that FTX and Coinbase are both crypto exchanges that allows users to trade cryptocurrencies, it doesn’t take a genius to know who is doing better.

One lost a billion in a quarter while the other made a billion during the crypto winter.

Question is, why?

Why is Coinbase suffering when FTX seems to be flying high in the sky and Sam Bankman-Fried (SBF) is going around shopping for distressed assets with his billions?

Coinbase was founded in 2012 and when it went public with its $86B IPO, it was one of the largest and most well-known brands in the crypto world.

Brian Armstrong, Co-founder and CEO of Coinbase, owned around 40M shares and had a $14B stake.

Since then, courtesy of the bear market, Coinbase is now hovering at a market cap of around $16B.

Coinbase IPO-ed at around $86B in 2021.

FTX was founded in 2019 and after raising a $400M series C, it is now worth over $32B.

And SBF reportedly owns more than 50% of that.

FTX, one of the youngest kid in the crypto exchange cohort, rose up and is now worth almost double of Coinbase, one of the OG.

This kind of reminds me of the early days when Ford designed the Ford GT just to beat Ferrari in France’s 24 Hours of Le Mans.

Nobody thought Ford had a chance.

I have to admit, I didn’t think FTX had a chance too.

Of course there is no animosity between FTX and Coinbase, unlike Henry Ford II and Enzo Ferrari.

But the fact that FTX could enter the game so much later and make so much progress to eventually beat the giant in the industry is quite amazing.

The bear market hits everyone the same.

What did FTX do so much better than Coinbase?

To make money when Coinbase is suffering and the markets are bleeding.

That is the most interesting question of all.

How long will this crypto winter last?

But it is still a down market and crypto winter hits everyone hard.

Trading volumes are plummeting.

Fortunes are lost overnight.

Crypto tourists are leaving for good.

Players, good and bad, are leaving the arena.

But I think this is a good thing for Crypto in the grand scheme of things.

All markets goes through cycles, up and down.

We need these cycles to flush out the weak, the uncommitted, the ones without conviction and the touristy speculators who are there for a quick dime and hype.

When the dust settles and crypto summer approaches, we will see newer, better things.

-

Is the bear market ending soon?

-

#startups #business #startupx #growth #success #socialmedia #culture #web3 #strategy #coinbase #ftx #sbf #sambankmanfried #brianarmstrong #revenue #winter #eth #btc #crypto #hackers #wallets

At nearly $12B, SBF is one of the richest person in crypto.

The contrast couldn’t be any bigger.

“Coinbase suffered a $1.1 billion net loss in the second quarter of 2022”.

“FTX grew revenue 1,000% during the crypto craze”.

I’m not a professional stock analyst, but I can read headlines.

And given that FTX and Coinbase are both crypto exchanges that allows users to trade cryptocurrencies, it doesn’t take a genius to know who is doing better.

One lost a billion in a quarter while the other made a billion during the crypto winter.

Question is, why?

Why is Coinbase suffering when FTX seems to be flying high in the sky and Sam Bankman-Fried (SBF) is going around shopping for distressed assets with his billions?

Coinbase was founded in 2012 and when it went public with its $86B IPO, it was one of the largest and most well-known brands in the crypto world.

Brian Armstrong, Co-founder and CEO of Coinbase, owned around 40M shares and had a $14B stake.

Since then, courtesy of the bear market, Coinbase is now hovering at a market cap of around $16B.

Coinbase IPO-ed at around $86B in 2021.

FTX was founded in 2019 and after raising a $400M series C, it is now worth over $32B.

And SBF reportedly owns more than 50% of that.

FTX, one of the youngest kid in the crypto exchange cohort, rose up and is now worth almost double of Coinbase, one of the OG.

This kind of reminds me of the early days when Ford designed the Ford GT just to beat Ferrari in France’s 24 Hours of Le Mans.

Nobody thought Ford had a chance.

I have to admit, I didn’t think FTX had a chance too.

Of course there is no animosity between FTX and Coinbase, unlike Henry Ford II and Enzo Ferrari.

But the fact that FTX could enter the game so much later and make so much progress to eventually beat the giant in the industry is quite amazing.

The bear market hits everyone the same.

What did FTX do so much better than Coinbase?

To make money when Coinbase is suffering and the markets are bleeding.

That is the most interesting question of all.

How long will this crypto winter last?

But it is still a down market and crypto winter hits everyone hard.

Trading volumes are plummeting.

Fortunes are lost overnight.

Crypto tourists are leaving for good.

Players, good and bad, are leaving the arena.

But I think this is a good thing for Crypto in the grand scheme of things.

All markets goes through cycles, up and down.

We need these cycles to flush out the weak, the uncommitted, the ones without conviction and the touristy speculators who are there for a quick dime and hype.

When the dust settles and crypto summer approaches, we will see newer, better things.

-

Is the bear market ending soon?

-

#startups #business #startupx #growth #success #socialmedia #culture #web3 #strategy #coinbase #ftx #sbf #sambankmanfried #brianarmstrong #revenue #winter #eth #btc #crypto #hackers #wallets