 More good news today in the crypto world as we see what can happen when a crypto exchange Follows the right path and actually make some slight modifications to keep themselves profitable. I'm right talk about this we're talking about coinbase and the earnings report that just came out recently and When we're going over this story start to think about all the different crypto Exchanges and platforms that have collapsed because they just couldn't keep up They did the wrong things or just something just fell apart for whatever reason whether that be a scam or a Ponzi Scheme or just poor decisions Let's take a look at how things are actually done. So there was a report came out today earnings call and Brian Armstrong the CEO of coinbase says Despite the crypto bear mark with the lowest volatility we've seen in years coinbase is financially healthy And I wonder like how do they do that? Why do they do that? Well, of course, I want to be healthy but but how did this actually come about and really comes down to This report coinbase is diversified revenue model is paying off So again, remember all the different types of exchanges and platforms we had and just compare this to what they did here So here's what we got while analysts Anticipated a bloodbath for the quarterly earnings for coinbase that just shattered expectations. Thanks to a change in revenue strategy subscriptions and services Contributed 51% of their revenue and before we go on what they're really talking about is as far as subscriptions is coinbase one Now I use coinbase one personally. I do not have an affiliate link for it I'm sure you can find it coinbase.com a link in the description But really what it comes down to is this I know people will say ah, but Robert the fees and everything else but look coinbase one I pay it's like $19 a month because I pay for the full year and It waves the transaction fees and also the sending fees Up to $10,000 so it works out pretty well for me because I dollar-cost average every single day for different various cryptos So I don't know what your plan is, but this is what it is now There's different tiers and all those things I'm not here to talk about you know how it works and and how great it is But for me, I use it and it works out pretty well so far and I can see what the allure of it is and why they became profitable so The statement here is the best way of having a successful business that has predictable revenue growth is something that isn't Transaction-based think about that think about all the different exchanges that are out there and even if they're actually afloat right now How many are at risk of becoming underwater? competing transaction fee models often develop into a raised zero and Transaction volume is highly cyclical in nature as the crypto market ebbs and flows what seems to be every three or four years Transaction of revenue is going to ebb and flow with that. It's a novel approach. Isn't it think about the products that are out there and how they are at the whims and The beckoning of the four-year cycle because it's always in the ebbs and flows It's gonna be bear markets and bull markets and busts Wouldn't it be great if there was a project out there that didn't have to deal with the four-year cycles as things are going on This is why I believe blockchain gaming is going to be so huge coming into the next bull run But that's a story for another 10 videos coming up So to finish up Revenues that stem from staking have been surprisingly positive the new target of how much ETH is going to be staked is higher than basically Anybody has predicted? Withdrawal Q of Ethereum has been effectively zero for the last two months and that Q to become a validator has been 60 To 80,000 waiting. I didn't know there was that many validators waiting. That's crazy Which is about a month of time I wouldn't be surprised at the end of the year at 30 to 40 million ETH staked and of course This is on top of there are the layer 2 chain they're using which is base which has built an optimism getting a lot of Tension how many people fully understand the ramifications of having a blockchain that you can own and get revenues from well I do because if you're doing transactions, you got to charge them something and as time goes on It's gonna be a pretty profitable business for Coinbase and then before you ask no There is no base token, but you can't get an optimism. You can check that out I'm sure there's a lot of videos on it. I just haven't covered it just quite yet. So that's what is going on That's the positive aspect and that's good. That's great for Coinbase Now let's take a look at the flip side of some of the problems that can come in and what I like about Talking about Coinbase essentially is that this When exchanges can prove that they can actually follow an economic model and be profitable without scamming a living tar Out of everybody. I think it's a pretty good Direction that we're going as far as the Bitcoin crypto and digital asset space and hopefully this can lead us Into the next bull market again pay attention to those who are building and thriving in the bear because they will crush it in The bull, but here's a flip side of this 36% of Coinbase second quarter net revenue is at risk going forward Here's what we got. You got to remember this this phrase Ebi TDA which is earnings before interest Taxes depreciation and amortization so it's earnings before everything else gets taken out essentially like that. So Coinbase has improved its Ebi TDA from 124 million loss in the fourth quarter of 2022 to a gain of 284 million in the first three months of 2023 Though that number dropped 32% to 195 million again pretty great Q4 last year weren't doing so hot now all of a sudden They're in the black. That's what we want to see. However Owen Lau executive director at Oppenheimer predicted last month that Coinbase has adjusted Ebi TDA could fall by 90% To 29 million that was his prediction last month and we know our analysts They love to analyze and sometimes they're wrong and he states look it was a better than feared quarter He said Friday, which is a pretty funny statement. He's like I thought you guys gonna be like yeah in the dumpsters But looks like you're profitable. Whoopsie and to finish up This is what's tenuous. These are the things that they're saying is potentially to worry about Interest income from USDC stable coin and staking revenues amounted to 151 million and 87 million respectively That represents 36% of Coinbase's net revenue for the quarter because they're getting interest off that by holding USDC USDC's market cap has continued to fall while staking has been targeted By both the Securities and Exchange Commission and 10 US states So that is another thing that kind of bothers me We have these rules. You see them right in below me, right? It's all gone Don't invest morning before to lose everything to scam and tell people otherwise and number three is don't leave your crypto on exchanges Apparently, this is falling on deaf ears because people are like whatever and they're leaving on Exchanges and what are they doing with that crypto? Well, they're staking before you and of course you're gaining a little bit of yield but remember There's this company. It was called FCX also Celsius also Voyager also BlockFi You left it there and look what happened. So just be aware of that's what's going on It's good for the bottom line for Coinbase, but not so good Maybe for you as an individual investor, you can do whatever you want to do not a national visor definitely not your dad So have at it So there's other good news for Coinbase and that is I didn't know this but Coinbase officially launches in Canada I guess that's happening today. So congratulations all Canadian You look like you're going to get a little bit of Coinbase and uh, if you're looking like again, try to that Coinbase one I guess you got a 30 day trial offer. So good job for that. That was brought to you by meg bzk You can follow her on youtube a lot of good information and advice and uh, not advice I should say information or you can follow her on twitter. I'll link it in the description below lastly the fight Between Coinbase and the sec now we've covered this extensively By these legal briefs that have come to light. We covered this uh yesterday in our live stream You can also find our q&a in the live section and we also talked about it three days ago Same type of thing. I just want to say that I know that the the sec seems like a juggernaut But after they got hit in the mouth with that loss by ripple I think the cracks are starting to show. So here's what we got on friday legal scholars venture capitalists and blockchain advocates Each filed amicus briefs. This is where they can submit legal briefs to the court To talk about Where they believe that this case is going to and just give perspective and expertise As far as securities laws and they join existing calls to bolster coinbase ongoing defense Several amicus briefs have already been filed this year, including from the u.s. Chamber of Commerce Which accused the regulator sec of causing substantial economic harm to both coinbase and broader business community And that will lead me to Just a quick question If you feel like the sec has essentially protected protected you a little bit too hard Put in the comment section below Tell me just exactly how much of they're protecting that they're protecting you the consumer And what had actually happened to you in your portfolio curious to see how that works out Especially what people say and then Legal experts argue that the sec interpretation is too broad and come could encompass a wide range of assets That are not currently considered securities Including commodities collectibles as well as traditional stock and bonds and of course A couple of videos we did yesterday and two three days before top u.s. Law scholars have already Submitted their their briefs. Those are from gale chicago ucla fortum bosson whitener Basically saying that the sec is out of line and the things that they are doing is incorrect They argue that for an arrangement to be an investment contract one of the three prongs of the howie test There must be an expectation of profit or a stake in business's income profits or assets Previous court ruling decisions emphasize the investor must be promising an ongoing interest In the enterprise's future profits or assets. I don't know about you, but I never got pro Promise anything from ripple. So we'll see how that works out Jenner and block attorneys filed a brief on behalf of us senator Cynthia lumis That's she's a republican from wyoming or lumis. I should say The senator contends the sec's pursuits against coinbase violates the constitution's separation of power and hamper's congressional attempts to oversee Crypto so that right there my friends. I think is very positive news especially moving forward I don't think we're going to really take off to a massive massive bull run that we should be If there isn't a bit of regulatory clarity and I think we're going to get it and it's going to come at the defeat of the sec And another side piece on this one. This is from uh, dan gammer dello. He is the owner and host Over at crypto capital venture. There is youtube site. I'll link in the description and he said, uh, and this is for the other Other case he says I love of judge phala who was presiding over the sec versus coinbase case Is sickly on x reading them this post by meta lawman and meta lawman. He's a Vanderbilt law He's an attorney. He's got a pretty good point here I thought I just uh, talk about it because we're just to get a little bit about securities And he states What's an investment contract if I buy a share of delos mavericks from cuban? That's a securities transaction but If I buy season tickets because it has utility tickets has utility you can do things with them You can go into the game and get it. You can resell them Tickets to the mavs game with the expectation of making a profit from reselling those tickets on the secondary market That's not an investment contract This is true Even though my money goes to rocky to the mavericks enterprise or repel if you want to take that little Dicotomy there the mavericks owe me contractual duties to play the games and have my seats available The profitability of my investment the tickets depends solely on the efforts of others Namely cuban the players and coaches and the supply-demand dynamics of the secondary market As the amicus brief of the six security scholars in the coinbase case makes clear I do not enter into an agreement contract or an investment contract when I invest In those season tickets because I do not gain contractual rights to the income profits or assets of the mavericks As it is the corporation the team the business And I just wanted to point this out because I think it's important to get The best information you possibly can from people who are experts in their field now look on this channel I'm just guessing I'm just I'm just reporting the news and giving to you as best as I possibly can But I will say that there's sometimes when people kind of They'll give an opinion and it's just their opinion, but people take it as gospel I think that's a big problem And one of those people Is michael sailor and michael sailor has repeatedly said this over and over again about how ethereum is a security How xrp is a security how pretty much all all coins are security When I looked at i'm like, I don't know if that's true I don't know if michael's a lawyer specializing in security law But I do know that he's a bitcoin maximalist And I am thankful for everything he's done for bitcoin the man. He has done us no favors in the all coin department And that's just how I stand Anyhow, I'll make sure you think about that in the comment section and let's finish up with a shout out to staking rewards On sunday every single week I always take my crypto that I've been buying or dollar cost averaging on coinbase And I take it for the week and I stick it in my nano ledger And I noticed that I had not been staking my sulana, which I have been dollar cost averaging lately I thought to myself. Well, how the heck should I do that now before anybody asks? No, they didn't pay me They didn't send me anything, but there's some great advice over here for staking rewards On how to actually stake and the best way to do it so staking rewards.com All you got to do is just and first of all I saw this I'm like, wow seven percent for the rewards I am really missing out So I went over there staking rewards.com you click on sulana And then you come down here and I was like, well, how do I actually Stake it and it says right here. How to stake sulana? And I'll tell you that the best thing to do is use a ledger harvill. I'm like, oh, I got one of those It's in my hand right now And when it went took me through all the steps staking a firm easy peasy lemon squeezy very super simple to do So if you're looking for some way that you have your crypto anything yourself Maybe I should stake that and I should do something with it. There's a great resource at stakingrewards.com And that's it for today. So look Like today's video give it a thumbs up consider subscribing. Everything we talk about is time sensitive Things are going to come fast and furious like I talk about because of the bitcoin having coming up in april 2024 So get your information from somebody that you trust. That's it for today. Thanks so much for stopping by I do appreciate you and I'll see you on the next one