I’ve shorted Coinbase stock — and Robinhood is proving me right

Remember MySpace? Once the king of the internet, now a footnote in digital history. That’s exactly how I see Coinbase stock right now — overhyped, overvalued, and slipping into irrelevance.

With Coinbase earnings due tomorrow and the stock down approximately 20% year-to-date as of May 6, 2025, investors are debating whether this is a “buy the dip” moment. Spoiler: I think it’s a trap.

Meanwhile, Robinhood’s stock has risen approximately 32% year-to-date as of May 6, 2025, quietly building a better, leaner alternative for the modern retail trader.

I’m short $COIN — and it’s not just because of the numbers. It’s because Coinbase is fundamentally missing the shift in how people invest in crypto trading platforms.

Coinbase Stock Is Stuck in a 2021 Loop

Back in the 2021 bull run, Coinbase was the poster child for crypto enthusiasm. But that hype has faded — and Coinbase hasn’t adapted.

It’s still clinging to a centralised exchange model that’s getting hit from all angles: declining user engagement, regulatory pressure, and smarter competition.

According to Zacks, analysts are expecting Coinbase’s Q1 results to benefit from the uptick in trading volume, which has historically correlated with stronger transaction revenue — though they caution that this may not fully offset macro pressures or regulatory overhangs.

But that feels like wishful thinking.

You don’t bet on Blockbuster just because DVD rentals spiked for a week.

Even with Bitcoin’s rebound, Coinbase stock is still down 20% YTD. That’s not just market volatility — it’s a crypto exchange stock that’s failing to capitalise on the very thing it’s built for.

As Shawnee Feed reports, rising costs and regulatory uncertainty are weighing it down.

Coinbase wants to be the New York Stock Exchange of crypto. But right now?

It’s starting to look like Yahoo Finance with gas fees.

Robinhood Stock Is Quietly Winning the Crypto Race

Let’s talk about Robinhood stock performance.

While Coinbase is struggling to stay relevant, Robinhood is doing the unsexy — but effective — work of giving retail users what they actually want: simplicity, speed, and access.

With one app, users can trade cryptocurrency, stocks, and options without jumping through hoops.

That convenience is no small thing.

Think of it like Netflix vs. Blockbuster — users always pick what’s easier.

Robinhood doesn’t try to be everything to everyone. Instead, it focuses on execution. It’s a crypto trading platform that understands UX, speed, and diversification — all in one place.

And that model is working.

While Coinbase is flatlining, Robinhood’s stock is up 30% this year.

When investors compare Coinbase vs Robinhood, the verdict is starting to lean hard toward the latter. Robinhood’s momentum isn’t a fluke — it’s a signal that the crypto investing crowd is evolving.

Crypto May Be Back — But That Doesn’t Mean Coinbase Wins

The bullish case for Coinbase goes something like this:
“Crypto is recovering, trading volumes are up, and that will lift the stock.”

Sure — cryptocurrency investing is rebounding.
But let’s separate the asset from the exchange.

Just because Bitcoin is rising doesn’t mean people are rushing back to Coinbase.

In fact, many are moving to Robinhood or decentralised platforms that offer better UX, lower fees, or more product variety.

Coinbase isn’t a Bitcoin proxy — it’s a bet on user engagement.
And that’s where it’s losing ground.

Zacks points out that short-term trading activity may give Coinbase a brief bump.

But that’s like slapping a fresh coat of paint on a crumbling wall.
The underlying structure hasn’t changed.

This isn’t just about crypto exchange stock comparison. It’s about understanding how the average investor behaves in 2025.

They want one app. One account. One dashboard.

Coinbase is still pitching complexity in an age of convenience.

Coinbase Still Thinks It’s Special — It’s Not

Here’s the big problem: Coinbase acts like it’s irreplaceable.

But it’s not.

It’s a centralised service in a decentralised world. A fee-heavy middleman in an ecosystem trying to cut out middlemen.

Most of its revenue still comes from simple trade commissions.
That’s not innovation — it’s a cash grab.

And it’s exactly why regulators are circling.
Users are waking up to it.
The whole model feels bloated.

Robinhood, on the other hand, is slowly building a fintech empire.
From cash management to stocks and crypto to IRAs, it’s creating long-term value.

Coinbase? Still throwing darts at new coin listings and hoping something sticks.

To use a simple analogy:

Robinhood is building a smartphone. Coinbase is selling overpriced calculators in shiny boxes.

Conclusion: Is Coinbase the Next MySpace?

Earnings might surprise tomorrow. Or they might not.

But zoom out, and the picture becomes painfully clear.

Coinbase is becoming the MySpace of crypto — stuck in a flashy past, ignored by a faster, smarter present.

Robinhood is proving what modern retail investors want.
And Coinbase just isn’t delivering it.

I’m not short $COIN because I hate crypto.
I’m short because Coinbase is fundamentally misunderstanding its place in this market.

The platforms that win in this space will be the ones that combine simplicity with automation — offering features like a built-in trading bot to support smarter, faster investing.

So ask yourself:
Is this a company preparing for the next decade — or one trying to relive its last great moment?

#Investing #StockMarket #Coinbase #Robinhood #Crypto #CryptoTrading #FinancialMarkets #TechStocks #TradingStrategies #Fintech

The information contained within this blog article is for educational purposes only and is not intended as financial or investment advice.

This information is considered accurate and correct at the date of publication. Changes in circumstances after the time of publication may impact the accuracy of the information.

Do your own research before making any trading decisions.