at the end of the week, CNBC reported a collection of revenue and profit figures from FTX, an international cryptocurrency exchange that has raised significant capital in the past year and is currently expanding its production. Its founder, Sam Bankman-Fried, has been a key player in the crypto market in recent months, participating in several deals as the decentralized economy slows amid bad news.
The data covered by CNBC paints a picture of strong growth, but limited — it doesn’t include Q2 numbers. The data, FTX’s private market value and recent data regarding Coinbase’s financial performance raise an interesting question: Is Coinbase cheap or is FTX overvalued?
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Naturally, since we are dealing with a private company and a public concern, we have to deal with information asymmetry. Coinbase is public, which means we have essentially all the data, making the US company a key barometer of our ability to understand the economics of crypto trading..