Is Coinbase Undervalued Given Circle's Rally?

Spiders
06-24

Coinbase revealed that the company is seeking SEC approval to launch a “tokenized stock” service. Tokenized stocks are digital assets backed by equity in publicly traded companies. The concept is bold— Instead of holding traditional securities, investors own tokens that represent ownership of those securities. In theory, it's a bridge between traditional finance and the decentralized future. On paper, this sounds like a win for Coinbase. But here’s how I see it.

Tokenized Stocks? Interesting, But I'm Not Jumping In

While the innovation is promising, I’m not planning to invest in these tokenized stocks—at least not anytime soon. It’s a new frontier, and with any new asset class, the early stages come with extra volatility and potential pricing inefficiencies.

I don’t chase hype or buy things just because they’re new. I prefer to wait, watch, and only act if I see value over time. Maybe in a few years, if the infrastructure matures and adoption grows, I’ll take a closer look. But for now, tokenized equities remain on my “interesting but not investable yet” list.

Coinbase vs. Circle? Apples and Oranges

Some investors are looking at Circle’s rally post-IPO and wondering if Coinbase (COIN) is being left behind or perhaps undervalued by comparison. To me, that’s not a fair or useful comparison. Circle’s surge may be a case of IPO excitement or a one-off driven by market buzz. It's a company with a different business model and risk profile.

Circle Internet Corp. (CRCL)

Coinbase, on the other hand, is already a well-established player with years of trading history. Comparing its valuation trajectory to Circle’s fresh IPO performance is like comparing a seasoned marathon runner to someone sprinting their first lap. The dynamics just aren’t the same.

Coinbase Global, Inc. (COIN)

So, Is Coinbase Undervalued?

Personally, I don’t think so—not at its current price. COIN has been trading in a 52-week range of $142.58 to $349.75, and right now it’s hovering around $336—near the top of that range. For a stock that doesn’t pay dividends and remains highly tied to the volatile crypto cycle, that price feels expensive to me.

I'm not saying Coinbase is a bad company. In fact, its leadership in the crypto space is undeniable, and its push into tokenized finance could open new revenue streams. But I don’t buy stocks at any price, no matter how strong the story. Valuation still matters. And for me, at these levels, there’s not enough upside or income potential to justify taking a position.

Final Thought: Innovation Alone Isn’t a Buy Signal

Coinbase’s potential move into tokenized stocks is a bold step and definitely one to watch. But bold doesn’t always mean “buy.” Just because Circle’s stock is climbing doesn’t mean Coinbase is undervalued by default. And just because a company is doing something new doesn’t mean it’s worth paying any price for.

I’ll stick to my fundamentals-first approach: strong financials, reasonable valuations, and business models I understand. If Coinbase checks more of those boxes down the road, maybe I’ll revisit. But for now, I’m staying on the sidelines.

Coinbase Goes Parabolic — Finally Time to Past $400?
Coinbase Global’s stock surged to a 52-week high of $382.6, pushing its market cap to an impressive $96.79 billion — a major milestone for the leading crypto exchange. Coinbase has announced a partnership with Perplexity AI to provide real-time crypto data for traders, enhancing its market analysis capabilities. The AI + crypto combo is changing how we access information! What’s your take on Coinbase’s latest move? Do you think Coinbase stock has more room to climb? Between Perplexity and Coinbase, who do you think will lead the next wave of tech-finance innovation?
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Comments

  • AL_Ishan
    06-25
    AL_Ishan
    Tokenized stocks? Sounds like Web3 meets Wall Street—kinda wild, kinda cool. I’ll keep it on my radar, but I’d rather YOLO something like COIN options if it dips hard again 😂
  • Kristina_
    06-25
    Kristina_
    Love the innovation vibe here! Tokenized stocks could be huge down the line, but yeah—I’d rather wait till the rails are built.[Thinking]
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