Popular, but still very young analyst Will Clemente is convinced that Coinbase shares are currently severely undervalued. According to Clemente, the shares of the American exchange platform are “the biggest venture capital-like opportunity in the public equity markets since Tesla.”
Over the past five days, Coinbase shares fell 16 percent, which is of course the result of the lackluster price performance of bitcoin and the rest of the market.
The biggest opportunity since Tesla?
According to Clemente, traditional investors look at Coinbase with the wrong eyes. They see Coinbase stock “purely as an exchange platform,” despite the changes it made to its structure over the past 12 months.
“During the bear market, they made many strategic changes to develop themselves into one crypto super app“, Clemente explained himself during the Unchained Crypto podcast.
The Coinbase Layer-2 network Base, which now manages $5.35 billion in value and processes 30.81 transactions per second, is an interesting development, according to Clemente.
“Over the past 30 days, Base generated $30 million in revenue for Coinbase based solely on transaction fees. That equates to approximately $360 million per year on an annual basis,” he explains.
Traditional investors don’t see this
Clemente thinks that traditional investors do not properly understand the development of Base, among others. They overlook the significant activity on the blockchain.
“Wall Street doesn’t even know what Base is and they certainly don’t extrapolate all the potential of the activity currently taking place there and the transaction fees that Coinbase is raking in,” Clemente said.
Coinbase closed yesterday at $218.08 and will open higher today; if bitcoin manages to defend its current price of $64,500 until the opening of the US stock exchange.
The past few days have been more difficult for the overall financial market. For example, the S&P 500 lost 3.12 percent, while bitcoin fell about 5 percent.
The geopolitical tensions in the Middle East in particular currently appear to be putting downward pressure on prices.
Source: https://bitcoinmagazine.nl/nieuws/analist-coinbase-aandelen-onderuit-maar-ondergewaardeerd
