Coinbase has become a go-to choice for over 43 million users in more than 100 countries. With its user-friendly interface, wide selection of cryptocurrencies, and educational resources, Coinbase has established itself as a leader in the industry.
However, it is important to note that Coinbase is subject to certain regulations designed to protect users, such as verifying identities and reporting suspicious activity to law enforcement.
Recently, Adam Draper, a well-known crypto investor, praised Coinbase, noting that it will be one of his best investments in the industry in the next five years.
Speaking to an audience at Consensus 2023, alongside Jalak Jobanputra, founder of Future Perfect Ventures, and Lauren Stephanian, partner at Pantera Capital, Adam shared his long-term investment approach in crypto. He still holds most of his investments in the industry, and believes Coinbase is a solid choice for both new and experienced investors alike.
The investor, who is known for investing in startups, added that in the short term, Coinbase might not seem alluring, especially for Wall Street investors who are driven by short-term gains. “Over the next five years, it’s going to be the best investment,” he said.
Although Coinbase has been in a long-running dispute with the Securities and Exchange Commission (SEC) over the classification of certain cryptocurrency products, the SEC is concerned that Coinbase’s lending and staking products are securities, which would require the company to register with the SEC as a securities exchange.
Coinbase has argued that its lending and staking products are not securities, and is willing to work with the SEC to reach a resolution. On the other hand, the crypto exchange has announced its expansion to Bermuda after receiving a license from the country, the acquisition of FairX in 2022, and One River Asset Management in March 2023.
Adam explained that one differentiation between a hedge fund and a VC in terms of timing is that while the former is short-term, the latter is long-term. He also revealed that 50% of his investment in Decentraland, the metaverse company, was sold at the peak of the bull run in 2021.