Chainfeeds Guide:
Two completely different approaches to solving the same problem: How to popularize cryptocurrency among the masses.
Article Source:
https://www.hellobtc.com/kp/du/08/5999.html
Article Author:
Thejaswini MA
Perspective:
Thejaswini MA: Robinhood and Coinbase are not traditional competitors, but rather conducting different experiments on the same user base. Robinhood saw financial pain points and asked, "What if we fix all the annoying parts?" They offer zero commission, trading of 15 cryptocurrencies, and a simple interface that allows users to buy stocks without understanding finance. Their philosophy is that users don't need to understand "how the sausage is made" to enjoy the result. Coinbase takes a different path, attempting to reconstruct the entire financial system with blockchain technology, charging higher fees but offering over 260 cryptocurrencies and deep engagement with the crypto ecosystem. Coinbase bets that all asset classes will ultimately be on-chain, aiming to become the world's leading crypto financial infrastructure. Both companies went public almost simultaneously in 2021, with market caps around $80 billion, targeting mobile-first young investors but designed for completely different use cases. Robinhood has recently accelerated its crypto layout, including launching its own Layer-2 network Robinhood Chain, Token-izing stocks, crypto staking, acquiring Bitstamp, and planning to introduce crypto perpetual contracts in Europe, building a crypto infrastructure seamlessly integrated with stock trading. Its low-fee model and order flow payment mechanism make trading almost free. However, Coinbase provides true crypto ownership and on-chain operational capabilities, suitable for deep participants. Q2 financial reports show different states for both companies. Robinhood's revenue increased 45% year-on-year to $989 million, with crypto revenue surging 98% to $160 million, increasing from 10% to 16% of total revenue. Despite a stable overall market, they achieved active account growth and doubled managed assets, with the Bitstamp acquisition bringing $7 billion in trading volume. Its $279 billion in assets, $13.8 billion in net deposits, and 2 million Gold subscribers demonstrate customer stickiness. Coinbase's total revenue decreased 26% quarter-on-quarter to $1.5 billion, with trading revenue declining 39%, and stock price dropping 16% on the report day. However, they still achieved $1.4 billion in net revenue and $33 million in adjusted net income, with core costs decreasing, USDC business revenue of $332 million, and custody assets reaching a new high of $245.7 billion. Coinbase is the primary custodian for over 80% of US BTC/ETH ETFs, managing over $110 billion in ETF assets, and providing payment and stablecoin infrastructure for PayPal, JPMorgan, and others. Its Base Layer-2 network is deeply integrated with perpetual futures and decentralized trading, building a diversified crypto service empire. Coinbase targets institutional users, establishing barriers through custody, liquidity, and compliance licenses; Robinhood targets young retail users, replicating Disney's strategy of first capturing mindshare and then harvesting wealth - with half the users being Millennials and a quarter being Gen Z, starting investing at a younger age than traditional platforms. Robinhood locks in user emotions through initial small sell orders and bundles savings, credit cards, and retirement services with Gold subscriptions, aiming to capture the $8.4-12.4 trillion wealth transfer in the next 20 years. Both companies have similar market caps, but Robinhood's 135% annual increase far exceeds Coinbase's 30%. Analysts believe Robinhood performs stronger in crypto revenue growth and stock Token-ization, while Coinbase's high-fee model is affected by declining retail trading. Nevertheless, Coinbase's institutional trust and layout are irreplaceable by Robinhood. In the future, they will coexist, separately meeting mainstream financial and crypto infrastructure needs, representing two theories about the future of money: Robinhood pursuing a simple, invisible financial experience, and Coinbase building a trustworthy underlying architecture.
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