All that the valuation suggests is that Coinbase is a company with 1 bn in revenue last year, and 1.8 bn just last quarter. By virtue of upsides being unbounded while downsides are bounded by the money you invest, the downside case really doesn't matter with a good enough upside case. Coinbase going down in flames may be the most likely outcome. That doesn't matter as long as you're not YOLOing your entire portfolio into Coinbase. What matters is the average outcome. And the average outcome is pretty good despite Coinbase failing in 9 out of 10 scenarios.
