Here are the dominating altcoins with massive gains amid Coinbase IPO FOMO, according to analyst Elliot Wainman
In the recent video, crypto KOL Elliot Wainman reveals the list of altcoins having the potential to gain parabolic growth amid the Coinbase IPO bullishness on the entire cryptocurrency market.
“Coinbase is ushering in an unprecedented era of mainstream attention to the crypto industry. It has paved the way for another group of tokens to explode, you’re definitely going to want to watch this one to get a feel for the next few days of market movements”.
“Coinbase’s IPO is set to go public. Rumors have it at a hundred billion dollars and that would make it the biggest financial exchange in the world, commanding a higher market cap valuation than the actual owner of the New York stock exchange, the Intercontinental exchange”.
According to the trader, for that reason, it is no surprise that fuss is all-around corner and that Coinbase’s ability to justify this 100 billion dollar valuation is starting to get put to the test.
Wainman then cites an article that points out 2 reasons that Coinbase IPO is a risky buy. The first reason is that there is an over-reliance of Coinbase on trading to drive profits:
“Coinbase generated 86% of its revenue last year from transaction fees – mainly from cryptocurrency trading. And in 2020, trading volume shot up 142% year over year, producing a 137% rise in transaction fees. But investors should note that 2020 was a particularly great year for cryptocurrencies, during which Bitcoin’s price rose fourfold from $7,184 per token to $28,972 per token”
In other words, booming cryptocurrency prices can boost Coinbase’s trading volumes. But the opposite also holds. In 2018, cryptocurrencies crashed. That year, Coinbase’s trading volume slid by more than 80%. Over the same period, the number of users making transactions on Coinbase every month fell by 67%.
“Should trading activity drop in a big way, Coinbase could wind up back in the red”.
On the second note, the trader says that Coinbase’s current valuation is for the perfect situation.
“Investors might try to justify Coinbase’s valuation by bringing up its impressive historical growth rates, as well as its exciting prospects. But if it fails to meet its rosy expectations, its valuation could easily collapse”.
These altcoins are poised to go parabolic
According to the analyst, the Coinbase IPO is driving a tremendous amount of mainstream financial attention into crypto markets and bitcoin is the primary beneficiary, but also we are seeing a huge surge in exchange tokens like Binance (BNB).
“Binance is pumping a lot because of the Binance Smart Chain narrative. It also has PancakeSwap on it which is of course one of the most powerful decentralized exchanges. So it’s benefiting from PancakeSwap overtaking Uniswap”.
KeeperDao (ROOK) is also a new project featured in the video. KeeperDAO is a decentralized organization that provides liquidity to markets of smart-contract-based solutions, by providing the underwriting of contracts.
“This is one of the sorts of leading projects in the minor extractable value category”, the analyst says.
He also mentions Archer DAO Governance Token (ARCH), a sustainable revenue source that boosts miner revenue and strengthens the Ethereum ecosystem.
“You may want to keep your eyes out for minor extractable value projects as those could potentially be huge gainers”.
Disclaimer: Opinions expressed at AZCoin News are not investment advice. Investors should do their due diligence before making any high-risk investments in cryptocurrencies. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. AZCoin News does not recommend the buying or selling of any cryptocurrencies.
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