Office Hours: Coinbase’s IPO, Higher Ed, Mentors, and Building Great Teams

Market Role

Scott Galloway compares Coinbase's role in the crypto market to AOL's early influence on the internet. He highlights how Coinbase has facilitated mainstream adoption of cryptocurrency, much like AOL did for the internet by making it accessible and user-friendly 1. Scott reflects on his own experiences with AOL, noting that it once dominated the online marketplace by owning the consumer access rails, similar to how Coinbase currently operates in the crypto space 2.

It's good to have custody of the consumer. It's good to own the rails. And people don't remember AOL owned the rails.

--- Scott Galloway

He expresses skepticism about the long-term prospects of Coinbase, questioning the sustainability of its business model without clear competitive moats 2.

   

Valuation

The valuation of cryptocurrencies is marked by excitement and complexity, lacking traditional benchmarks. Scott Galloway acknowledges the challenge in understanding crypto valuations, as they are not tethered to conventional metrics like those used for cloud or SaaS companies 3. He suggests that the crypto market benefits from this ambiguity, allowing narratives to drive value rather than concrete financial metrics.

I find that this whole space has benefited from this combination of it's super exciting and very difficult to understand, which creates an environment where there are no benchmarks for valuation.

--- Scott Galloway

Scott advises Coinbase to focus on growth by cutting fees and investing in technology to maintain its position as a leading crypto exchange 3.