Coinbase’s (COIN) stock soared this week when it announced the release of its new Base app, which will be a combination wallet, trading and payment platform, and will also include social media, messaging, and support for other mini apps.
It will be running on Coinbase’s public blockchain network Base, which was built on Ethereum.
The Base App essentially replaces Coinbase Wallet. Or as the company said in its blog post announcing the launch, Coinbase Wallet is “evolving from a wallet into an everything app.”
Coinbase launched the Base blockchain network two years ago.
As CNBC notes, these so-called “super apps” that bundle a company’s services onto a single platform “have long been viewed as the holy grail of fintech by the industry.”
But while these super apps have permeated the culture in China, they haven’t been successfully launched yet in the West, CNBC reports.
One of the aims for Coinbase’s Base App is to broaden its consumer base and attract people who might not be interested in trading crypto. CEO Brian Armstrong has for years been focused on diversifying the company’s revenue stream beyond the fees it collects off its exchange.
Rather than promoting the crypto trading aspect, Coinbase is instead marketing the Base app toward “creators,” while emphasizing the decentralized nature of Base, which differentiates it from its centralized exchange.
“We believe the next chapter of the internet won’t come from big platforms. It’ll come from creators,” the company wrote in its blog post.
“That’s why we rebuilt the Base app from the ground up, not just as a wallet, but as a new kind of open social network.”
The company notes that “creators can own their content and earn directly from their success” without needing “to rely on brand deals or massive followings to earn their first dollar.”
Wall Street raises price targets
Coinbase announced the launch of the Base app at an event called “A New Day One” in Los Angeles, after which Armstrong said in a post on X that he’s “more bullish on creators and the creator economy than ever.”
“I'll be using the app to post content often, and supporting creators with part of the earnings from my posts,” he added.
The app was in beta mode for waitlisted users starting on July 16. When users sign up, they receive a Base Account, which is a smart wallet that follows them across apps and chains on the platform.
Coinbase also introduced Base Pay, a checkout service that enables near-instant USDC stablecoin transactions.
JPM Securities maintained its “outperform” rating for COIN shares in a note on Monday, while raising the price target from $400 to $450.
Meanwhile, Rosenblatt analysts maintained its “buy” rating on the stock, while making a significant upgrade on its price target from $300 to $470.
The firm called Coinbase the “blue-chip name” in the crypto industry and cited legislative developments, a rebound in trading volume, and the company’s “rapid product expansion” as reasons for bullishness.
Coinbase’s stock was priced at $410.75 at the end of trading on Thursday, which was a record.
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