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COIN a Buy despite Q3 revenue miss, analyst says

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Coinbase shares fell after the company’s weaker-than-expected third-quarter earnings, but H.C. Wainwright analyst Mike Colonese maintains a buy rating on the stock.

On Oct. 30, Coinbase, the largest publicly traded crypto exchange, released its third-quarter earnings report, which showed an “uncharacteristic top-line miss,” according to Colonese. He noted that this might impact the company’s shares in the short term.

However, despite the revenue miss, largely down to the lower crypto prices during the quarter, the overall take is that this was a solid Q3, 2024.

Notably, aspects such as expense controls and revenue diversification are on the positive side for Coinbase. The next 12 months also offer a bullish outlook for crypto prices, with regulatory clarity adding to potential upside catalysts.

“We were encouraged to hear management’s positive views on the upcoming election and the implications for the crypto sector. Specifically, CEO Brian Armstrong, believes the U.S. will have the “most pro-crypto Congress ever” regardless of who wins next week’s presidential election. Lastly, Coinbase recently initiated a $1B share repurchase program, as the company aims to return capital to shareholders in the future.”

Mike Colonese said.

Colonese reiterated a buy rating for Coinbase, with a price target of $255, down from $295, reflecting the revised revenue estimate for 2025.

H.C. Wainwright analysts have lowered their revenue estimates for Coinbase, projecting $5.45 billion for 2024 (down from $5.67 billion) and $5.37 billion for 2025 (down from $6.25 billion).

Coinbase reported total revenues of $1.21 billion in the third quarter, a decline of 17% quarter over quarter but an increase of 86% year over year, slightly below FactSet estimates of $1.26 billion.

Risks to H.C Wainwright’s Buy rating and target price of $255 will include concentration of retail trading revenue, crypto price dump and regulatory uncertainty.



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24/7 Cryptocurrency News

Coinbase Unveils On-Chain AI Agents On Ethereum L2 Base

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5 days ago

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October 27, 2024

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Coinbase announced a new set of fully on-chain AI agents users can create in under three minutes on its Ethereum L2 network Base.

Built with tools from Coinbase, OpenAI, and Replit, these agents can manage crypto wallets, connect with X (formerly Twitter), and perform other tasks.

This marks a significant step toward the convergence of AI and blockchain technology.

Coinbase’s Vision: A Future Where AI Agents Drive DeFi

Recently, Coinbase and its CEO Brian Armstrong showed a far-reaching vision for the new era of AI and blockchain integration. In this world, AI agents have the financial independence to spend and transact through cryptocurrency wallets.

For Armstrong, this is how DeFi becomes a game-changing place. Digital economies are reshaped through AI-driven systems autonomously without human interference.

One major limitation that really holds back AI systems from widely usage today, is financial autonomy. Opening bank accounts or keeping credit cards for AI agents is not possible. They are not able to handle resources or purchase things on their own.

That really hinders their use of important services, like cloud computing in AWS, paid APIs, and subscription-based digital tools. The lack of independent transaction capabilities greatly restricts AI system’s real-world applications.

Cryptocurrency wallets for AI agents remove various barriers that would otherwise be in place. The crypto wallet allows AI agents to interact with open marketplaces, transacting with stablecoins on Base and Coinbase’s Layer 2 blockchain.

Financial independence means that they can pay bills, subscribe to things, or buy digital assets. This capability is a breakthrough that will grant AIs the ability to act as autonomous economic entities across industries.

Because of that, Armstrong recently offered the AI agent a new crypto wallet. He acknowledged that Truth Terminal already had a crypto wallet but insinuated that its human creator controls it.

AI Agents to Drive Crypto Innovation

The integration of crypto wallets with AI agents represents one of those points of inflection in integrating AI with blockchain. This is where the dream of an AI-to-AI economy is being trailed by platforms such as Coinbase. There, even financial transactions and asset management-participation in decentralized governance, is done autonomously between AI agents, independently of human intervention.

For crypto investors, this shift in dynamics translates into an opening of new opportunities. As financial freedom is slowly bestowed upon AI agents, their ability to operate freely, independently in decentralized ecosystems unravels new ways of growth, innovation, and investment. It also promises long-term value for infrastructural and consumer use cases.

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Teuta

Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries. Starting her career in 2005 as a lifestyle writer for Cosmopolitan in Croatia, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing crypto to be one of humanity’s most crucial inventions. Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law, enjoys punk rock, chablis, and has a passion for shoes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Stablecoin usage surged in Q3 as market cap hits $170b: Coinbase

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2 weeks ago

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October 16, 2024

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The third quarter of 2024 saw a surge in stablecoin use and adoption, according to Coinbase’s 4th Quarter Guide to Crypto Markets report with Glassnode. 

Stablecoins hit an all-time high market capitalization of nearly $170 billion in Q3 2024, according to the report. This growth occurred alongside the implementation of the European Union’s new Markets in Crypto-Assets regulation, which introduced clearer rules for stablecoin operations.

Stablecoins have become a key tool for users seeking faster, cheaper, and more secure transactions. Their utility in payment systems, including remittances and cross-border transfers, has continued to expand. 

Recently, Anthony Pompliano argued that tech innovations outside of crypto could lead to a new era in which stablecoins become the primary transaction medium in a machine-driven economy. This increased adoption reflects the growing role of stablecoins in crypto trading and real-world financial systems.

According to the report, stablecoin volumes have reached nearly $20 trillion year-to-date as of the third quarter, indicating their growing role in the global economy.

Stablecoin usage surged in Q3 as market cap hits $170b: Coinbase - 1
Source: Coinbase and Glassdoor

Stablecoin and Bitcoin dominance

Stablecoin dominance also increased in Q3 alongside Bitcoin (BTC), with crypto investors gravitating toward what they see as the highest-quality digital assets.

The current BTC cycle closely tracks the 2015-2018 and 2018-2022 cycles, which ended with nearly 2,000% and 600% returns, according to the report. 

Stablecoin usage surged in Q3 as market cap hits $170b: Coinbase - 2
Source: Coinbase and Glassdoor

What is MiCA?

The Markets in Crypto-Assets Regulation is a comprehensive framework enacted by the European Union in June 2023 to regulate the crypto industry across its 27 member countries. It initiates a 12-18 month transition period for implementing rules on anti-money laundering, combating the financing of terrorism and digital asset custody, among others.

MiCA’s impact on stablecoins still remains to be seen, but Tether (USDT) CEO Paolo Ardoino expressed concern that MiCA’s 60% cash reserve requirement for stablecoins could create systemic risks for European banks. He argued that such regulations might exacerbate liquidity issues during large-scale redemptions, potentially leading to bank failures.



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Crypto Investor Arthur Cheong Predicts Base Will Flip Coinbase’s Centralized Exchange Platform Volume

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2 weeks ago

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October 15, 2024

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Venture capitalist Arthur Cheong thinks Coinbase’s Ethereum (ETH) layer-2 scaling solution Base is primed to witness a surge in trading volume.

The DeFiance Capital CEO predicts on the social media platform X that on-chain spot decentralized exchange (DEX) volume on Base will flip Coinbase’s centralized exchange (CEX) volume “within six to 12 months.”

“Makes logical sense when you think about it, and it all comes together with the DeFi (decentralized finance) Renaissance thesis.”

Cheong believes Base is “the future of Ethereum.”

He also sees the DeFi sector surging alongside memecoins.

“Am I the only crazy one to think both DeFi Renaissance and memecoins supercycle can happen together?”

Base recently surpassed Arbitrum (ARB) to become the top Ethereum layer-2 scaler in terms of total value locked (TVL), according to the decentralized finance data aggregator DeFi Llama.

TVL refers to the amount of capital deposited within a protocol’s smart contracts and is often used to gauge the health of a crypto ecosystem.

Base currently clocks $2.45 billion in TVL, compared to $2.404 billion for Arbitrum. The only projects that register more TVL than Base are BSC (Binance Smart Chain), Solana (SOL), Tron (TRX) and Ethereum itself.

Coinbase launched Base last year. The top US crypto exchange says it does not currently plan to issue a network token for the layer-2 scaler.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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