Analyst Says FTX Collapse Won’t Benefit Coinbase

• Analyst Dan Dolev, Mizuho, stated that crypto is dead and that Coinbase investing is a waste.
• Analyst at Wall Street doesn’t believe Coinbase will benefit from the collapse FTX, a competitor crypto exchange.
• Dolev claimed that Coinbase was “a very bad company right now” with a loss of $1.2 billion for $600 millions in revenue.

According to Mizuho analyst Dan Dolev, any Coinbase investors who believed that the collapse of FTX will be a net advantage to Coinbase should temper this enthusiasm.

FTX was a competitor crypto exchange to Coinbase. Some saw its demise as a chance for Coinbase’s growth and potential customers.

Dolev, however, said that the future of crypto is grim as investor confidence falls to new lows. This is similar to what happened 20 years ago with tech stocks after the dot-com crash.

Dolev stated, “I believe crypto is dead. I think that investing on Coinbase is just waste of time.” “The consumer is disinterested. It took five years for people to get back to dot-com bubble. [tech] Stocks, and those were real business.”

It is impossible to say the same for crypto, since tokens such as FTT don’t have any underlying cashflows. They also don’t have any assets or business activities. Instead, supply and demand are the only drivers of value and prices in crypto tokens. Demand is booming.

“What we’re referring to are these crypto tokens. Dolev explained that FTX said you could become worth the world one day and lose it the next day.

Dolev says that Coinbase will not see any market share gains in the FTX fiasco. This is primarily due to the low level of trust in the cryptocurrency industry.

“I couldn’t get too excited about it.” [Coinbase market share gains]Because overall volumes are falling. They’re [Coinbase] Dolev stated that the crypto exchange made $600 million in revenues and lost $1.2 billion. These numbers may refer to Coinbase’s third-quarter earnings results. Coinbase generated $576million in revenue and $1.15billion in operating expenses. This is a 53% decrease in revenue year-over-year.

Dolev said, “It is a very bad company right now.” Coinbase stock price is a clear indicator that investors don’t disagree. The stock has fallen more than 80% over the past year and is at record lows.