Viewpoint: Coinbase may become a target for acquisition and merge with traditional exchanges

On March 8th, according to Barrons, Coinbase has met the conditions to become a target for acquisition. If it can merge with a traditional exchange, it will be able to create a company with both professional knowledge and industry influence, and thus dominate the current fragmented cryptocurrency market. At present, Coinbase's price to earnings ratio is about 22 times, with a total market value of about 52 billion US dollars. However, the ability of large US trading companies has made this transaction a reality. The parent company of the New York Stock Exchange, Intercontinental Exchange (ICE), has a market value of up to $100 billion and a P/E ratio of 36 times. Kelly Loeffler, the wife of its CEO Jeffrey Sprecher, is a member of the Trump administration cabinet. The global futures trading giant CME Group has a market value of $93 billion and a P/E ratio of 26 times. The Nasdaq exchange is known for its technological strength and global network, with a market value of $47 billion and a P/E ratio of 41 times. If Coinbase can cooperate with major exchanges in the United States, it will be able to open the door to power and markets, which may still be out of reach for it at present. Large investors may push a top exchange to acquire Coinbase, and the new company will be able to maximize investment returns as cryptocurrency gradually moves from the financial frontier to the mainstream.