I remember a guy telling me he was shorting Google after it IPO’d because of the volatility in yahoo at the time. I told him that was a bad idea.
Yeah, that was a terrible idea in hindsight.
For coinbase to ever grow into it's valuation crypto would have to become an integral part of society at large.
After 12 years, it's still largely useless and offers no advantages over centralized financial solutions. The only advantage it had is it is decentralized. But in practice this turned out to be false. So what concrete use case could it have that can't be done better with a traditional database?
My bet is this is a bubble, and it will pop sooner or later. Having some short exposure to that is desirable. Especially if it's not in bitcoin which could rise a lot, but an overvalued company that would take a long time to grow into its valuation.
I'm doing a little side project with my brokerage account where I pick 20 good socks and 20 bad stocks. Sell the bad ones short and double down on the good ones.
That's how hedge funds work. It's interesting because as long as your picks are mostly right you can make money regardless of of the market is going up or down. Plus it'll be fun to say I started a hedge fund at parties.
Coinbase is my number 1 bad pick.