Coinbase sets record daily trading volume, Larry Cermak: Valuation upon IPO could exceed $100 billion

After Coinbase confirmed its IPO application, the FTX exchange also launched a Pre-IPO product, with an issuance of 250 million shares, priced at 289 before the deadline, equivalent to a market value of 72.25 billion. Following the record-breaking trading volume on January 12, 2021, media outlet The Block's research director Larry Cermak estimated an even higher figure.

Record-breaking Daily Trading Volume for Coinbase

According to The Block's statistics, the trading volume in January 2021 was significantly high, with January 11 marking the highest daily trading volume in 17 years. The Block's research director, Larry Cermak, mentioned that this volume is equivalent to the first quarter of 2019 and surpasses that of January 2020.

In his view, the substantial growth in trading volume is a significant boost for Coinbase's IPO. He has also raised his valuation of Coinbase significantly, now valuing it at over one trillion dollars.

Larry Cermak believes that Coinbase's high valuation will also drive the adoption of cryptocurrencies. Despite recent market volatility causing significant downturns, he is confident that Coinbase's IPO will attract more mainstream adoption of digital assets.

How Much Profit Did Coinbase Make Last Year? What About Binance?

Larry Cermak initiated a poll to guess how much profit Coinbase made in 2019. Currently, most people are guessing over 20 billion U.S. dollars. Larry Cermak himself speculates that in 2017, with a trading volume of 753.9 billion, Coinbase made a profit of 923 million, so it is likely to be between 17 to 18 billion in 2020.

Moreover, according to research, Binance destroyed BNB tokens worth 52.5 million, 60.5 million, and 68 million U.S. dollars in the first three quarters of 2020, totaling 181 million in profit. Assuming that BNB will be burned by 20% of the quarterly profit as mentioned in Binance's early whitepaper (which has since been removed), Binance may have made 905 million U.S. dollars in profit in the first three quarters of 2020, with the fourth quarter figures yet to be disclosed.

Regardless, Binance founder Changpeng Zhao has stated that Binance is not pursuing an IPO. In response to the news of Coinbase's IPO plans, he said, "I don't usually comment on other exchanges, but I want to congratulate Coinbase on their IPO plans. It paves the way for the cryptocurrency industry. As for Binance, we have no plans for an IPO as we want to be more decentralized." Currently, the market value of Binance's platform token is 5.56 billion.