Coinbase is preparing to go public in the coming weeks, with early reports suggesting that the company will be valued at around $104 billion.

This number pushed Bloomberg and Axios to note The cryptocurrency giant’s public listing value will be the most valuable of any US technology company since the Facebook era.

At first glance, a comparison between the two companies seems far-fetched in terms of measurement.

Facebook is a household name around the world with more than two billion monthly active users, while Coinbase still occupies a relatively small niche, with bitcoin enthusiasts and cryptocurrency users.

The company has registered more than 40 million users, but as its public listing papers reveal, only 2.8 million use it on a regular basis per month.

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However, those who buy shares in a public offering are not betting on the present, but on the future.

In the case of Coinbase, buying at $100 billion is a bet that the company will grow into a giant that will one day make profits to justify the remarkable price.

For now, such a bet – while risky – is not out of reach.

Just as Facebook has gone from a silly platform for high school and college students to a mainstay in our online lives, Coinbase is also poised to be much more than just Bitcoin.

Over time, the company will likely become the backbone of a new financial world.

This world will be built on a new technology stack of blockchain networks and digital tokens, and Coinbase’s mastery of this technology means that it is ready to disrupt traditional banks and exchanges.

In fact, a hint of Coinbase’s ambitions can be found in its recent papers, which point to plans for its own digital currency.

If this is all too simple for some, take a look at the financial figures recently published by Coinbase.

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Coinbase made $322 million last year, and based on the recent rally in bitcoin, it will likely surpass that in the first quarter of 2021 alone.

This is great considering that 85% of companies that go public these days are losing money, not to mention that many companies have recently been in financial hardship affected by the Corona virus, such as Uber and Airbnb.

Unlike other companies that have gone public in recent years, Coinbase is designed to be a bank, and banks make money.

All this does not mean, of course, that “Coin Piece” will beat “Facebook”, but rather it is just readings in numbers and predictions that may or may not be true.

Coinbase relies excessively on trading commissions for its revenue.

It is the commissions that will come under pressure because other companies such as “Robin Hood” and “Square” are also leaning towards cryptocurrencies and are struggling to develop other popular products for them in this field.

Unlike Facebook, Coinbase will have to weather periodic shocks.

In contrast to social networks, which people are constantly using, the nascent crypto industry has been marked by crazy booms (like the one that took Bitcoin to $58,000) and long stretches of a crypto winter, where prices and trading activity plummeted into a cliff.

Read:Bitcoin CME Hole Completed at $29,000…Is There a Rebound Coming?

Despite these red flags warning about the performance of Coinbase, which is affected by the impact of the cryptocurrency market, the clamor to snap up Coinbase shares in the private market indicates that smart money (institutional money) appreciates that the company is built to last.

When the shares hit the public markets in the next few weeks we are likely to see huge media momentum accompanying the listing process.

Just like Facebook a decade ago, but will Coinbase perform as well as Facebook?

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