Operating at the Intersection of Technology and the Capital Markets
Category: Fintech
It is outrageous that online tax preparation services have been sending personally identifiable information (PII data), to Meta Platforms (ticker: META). PII data such as Full Name and Gross Income is being shared without consent. To not disclose this fact to customers is criminal in our view. If META wants this PII data, it should … Continue reading META, Taxes & Intuit
Coinbase (COIN), is a walking bankruptcy absent an immediate, dramatic recovery in Retail customer sentiment. The probability of an imminent resurgence in Retail enthusiasm for Crypto is close to zero given 2022's various Crypto failures including the recent FTX fraud (FTX founder Sam Bankrun Fraud needs to be arrested ASAP). It hardly bodes well for … Continue reading Coinbase Is A Bankruptcy Waiting To Happen
Tiger Global paid Bain & Co. $100 million to perform due diligence, yet Bain somehow missed that FTX was a fraud. Helpful hint: check the bank statement next time. Then, work your way backwards through the cash flow chain. I can understanding hiring industry experts or functional specialists to assist with your internal investment due … Continue reading Saying “No” To Deals Avoids Blowups
Crypto is purely a speculative vehicle with zero underlying value. Thus, why would advisors ever recommend that clients purchase crypto in their portfolios? Not Money: Crypto currency is not a store of value. Crypto currency is not a medium of exchange. Ever try buying something with Bitcoin, even at its peak? Massive haircuts at the … Continue reading Crypto Is Not Money, Nor An Asset
Just a reminder that if Coinbase (ticker: COIN), was to file for bankruptcy protection, customer assets would be considered Coinbase property. Why would any retail or institutional investor ever engage Coinbase as a custodian given that risk? The excerpt below is from COIN's 10Q filing: Moreover, because custodially held crypto assets may be considered to … Continue reading Coinbase: What’s Yours Is Mine
Why the venture community invested in kids running crypto exchanges is beyond me. If the venture firms that put money into FTX did an ounce of due diligence they would have passed on the deal. Did anyone ask to confirm bank deposits and customer reserves? Did anyone ask about customer trading records and associated reporting … Continue reading Investor Due Diligence. You Get What You Deserve.
What are Binance and Coinbase (COIN) worth given that crypto speculators are running for the hills? The underlying Distributed Ledger Technology (i.e. Blockchain) is worth something, but not enough to support COIN's $12 Billion market cap. Simply because a stock has lost 80-90% YTD does not mean it won't lose another 80-90%.
When it comes to Technology companies, headcount reductions are rarely "one & done". This used to be especially true of Bay Area Technology companies which are famous for lacking operating discipline (i.e. cost discipline). However, the Bay Area aversion to running profitable businesses has permeated the Tech sector over the past 12 years of easy … Continue reading Tech Company Layoffs Are Rarely “One & Done”
You are crazy if you do not believe that most if not all of the various crypto exchanges were/are front-running customer orders. Similarly, robbing Peter to pay Paul crypto Ponzi schemes make Madoff look like an amateur when one considers total AUM. The SEC ought to have stepped in under Trump and regulated the exchanges … Continue reading Enjoying The Crypto Winter
This spring when I said the NASDAQ would bottom around 9,000 my thinking was as follows: 2022 would be a year where higher interest rates reset equity valuations lower, especially as it relates to the NASDAQ Composite. 2023 would be a year where poor company fundamentals reset equity valuations lower. The NASDAQ has experienced some … Continue reading Markets Have Another Leg Down
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