CRYPTO

Coinbase Jumps Into the Public Market

Well, pretty soon. Yesterday, crypto exchange Coinbase filed paperwork with the SEC to go public. It's likely to be one of the first big IPOs of 2021. 

The rundown: Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam, and has since grown from a bitcoin exchange into one of the foremost crypto companies. 

• Armstrong incited controversy earlier this year when he explained in a blog post that Coinbase was a strictly apolitical company and offered buyouts to any employees who disagreed. Sixty took him up on it. 

Run the numbers: Coinbase has raised over $547 million from investors including Andreessen Horowitz, Union Square, and BBVA. It was most recently valued at about $8 billion and boasts about 35 million users, more than Schwab. 

This is really a story about crypto's glow-up 

Cryptocurrencies were once the Gunther of the financial world because of their volatility and murky-at-best legal status. But this year, they're approaching Phoebe (irrefutably the best cast member). 

• Bitcoin, the largest cryptocurrency, is up over 200% on the year. 
• Just this week, it surpassed $20,000 for the first time ever on its way up to $23k.

Bitcoin's price is surging as more Patagonia vests embrace crypto. Traditional investors such as Paul Tudor Jones and Stanley Druckenmiller have come out in favor of bitcoin. Institutional investors Fidelity and MassMutual have also gotten on board, and financial platforms Square and Robinhood now allow crypto trading. 

There are a couple major unknowns 

Coinbase hasn’t announced 1) which exchange it will list on or 2) how the IPO will be structured. We could even see a blockchain-based IPO—if the SEC is in the mood to approve that sort of thing. If not, Coinbase could follow Spotify and Slack's path to a direct listing. 

Bottom line: If you've ever hung out with crypto folks, you know they're the people at the bar who order a round of French 75s. Coinbase's IPO will not be typical.  

E-COMMERCE

Walmart and TikTok: On Again

In September, news broke that Walmart planned to invest in the imperiled social media giant TikTok. It didn't make no sense—TikTok faced a ban from the U.S. unless it found an American buyer, and an investment would give Walmart an intro to its young and choreographically talented user base—but it seemed like an odd couple. What's next, Sam's Club x Twitch? 

Nope, what's next is more Walmart x TikTok. The TikTok ban is still in legal limbo, but today, Walmart will test out a pilot version of shoppable content on the platform. How it works: 

• Ten of the biggest TikTok creators, including Michael Le and Taylor Hage, will display Walmart's fashion items in a livestream on its profile. During their displays, pins will pop up for users to click on and add to their carts. 
• Online shoppers can also browse all the featured items after the event. 

Zoom out: Big Tech behemoths including Facebook, Google, and Amazon have tried to integrate social media and shopping, but no one's quite cracked the nut, at least not in the U.S. 

PUBLIC HEALTH

The King's Speech

Yesterday, Sweden's King Carl XVI Gustaf said his country "failed" its pandemic response. 

Refresher: While other countries enacted strict lockdowns when the pandemic began, Sweden gambled on an open economy and voluntary guidelines, with the goal of eventually reaching herd immunity. The reality:

• Sweden's economy shrank 8.5% in the first half of the year. 
• It's logged 350,000 cases and 7,800+ deaths (more than its Nordic neighbors combined). On Monday, a government report said officials failed to protect nursing home residents, who account for nearly half of Covid-related deaths in Sweden.
• Hospitals are overwhelmed and healthcare worker resignations are rising. 
• Anders Tegnell, Sweden's Dr. Fauci, admitted there are "no signs of immunity in the population that are slowing down the infection."

While Tegnell has defended his approach, a second wave of cases this fall forced Sweden to change its tack. In the last month, it’s banned gatherings larger than eight, stopped late-night alcohol sales, and moved some high schools to remote learning.

Looking ahead...EU regulators should release a decision on the Pfizer-BioNTech vaccine Monday. If it's approved, Swedish healthcare workers get dibs around Christmas. 

SPONSORED BY DIVVY

Free Demo Solves EOY Accounting Problemo

Most annoying thing in the world? Mosquitoes. Second most annoying? Manually entering employee expenses at the end of the year.

Divvy is a spend management system that saves you hours of data entry, making your work life way less annoying. Instead of you tracking down receipts, Divvy tracks expenses in real time, then syncs that data with your accounting system.

Plus, with Divvy’s live, human support only a phone call away, you might even make a new, incredibly helpful friend while you’re at it.

It’s simple, really: Save time. Save money. Demo Divvy for free by clicking on this sentence.

REAL ESTATE

Should We Buy a House?

The 30-year fixed-rate mortgage, the most popular long-term commitment after marriage, fell to a record low of 2.67%, according to Freddie Mac. That's 1) the 15th record low this year and 2) the lowest since Freddie started tracking ~50 years ago.

• FYI: Freddie Mac is a government-sponsored mortgage investor. To calculate the average rate, it compiles rates extended to "high-quality" borrowers by 80 lenders across the country.

Bargain basement rates have pushed folks who might otherwise have held off a few years into the homebuying ring. Compared to 2019, mortgage applications are up 26% and refinances 105%, per the Mortgage Bankers Association.

Economists expect that momentum to continue into 2021, especially after the Fed recommitted Wednesday to its bond-buying program (which includes mortgage-backed securities that have helped keep rates down). 

While we're here...amazing news for aspiring Chip and Joanna Gaineses. Returns on home flips are at a two-decade high, according to ATTOM Data Solutions. But good luck getting your hands on cheap property: Surging home sales have squeezed supply and inflated prices.

QUIZ

Quiz the Season

The feeling of getting a 5/5 on the Brew's Weekly News Quiz has been compared to being right about bitcoin.

It’s that satisfying. Ace the quiz.

WHAT ELSE IS BREWING

• Google got hit with its third antitrust lawsuit in several months, this one over its search practices. Some good news: Its $2.1 billion acquisition of Fitbit was cleared by EU regulators.
• Robinhood's had a couple of days. Yesterday, it paid a $65 million fine to settle the SEC’s charges that it misled customers...one day after MA regulators filed a complaint against the app. 
• President-elect Joe Biden said cybersecurity will be a top priority following the recent suspected Russian hacking of top U.S. agencies and Fortune 500 companies. 
• Coca-Cola will cut 2,200 jobs globally as part of a restructuring effort.
• FedEx said its profit almost doubled last quarter during the shipping boom.
• Michael Regan, North Carolina’s environment secretary, is reportedly Biden’s pick to lead the EPA.

BREW'S BETS

2021, here we come. We’re charging into this new year with increased energy, less bloat, and improved digestion thanks to Sakara’s Metabolism Super Powder. It’s the help we need to enjoy a new year filled with good health and confidence. Get 20% off here.*

$180 billion is a lot of bones. That’s how much is spent per year on osteoarthritis treatments. Most treatments only address the symptoms, but Cytonics’s drug works at a molecular level. And they’re taking investments in this revolutionary approach. Invest here to join their online public offering.*

Weekend listening: Did you know we have another podcast? It's called Founder's Journal, and it's Morning Brew CEO Alex Lieberman's audio diary made public daily. Check out our top episodes and you'll be hooked: 1) The acquisition 2) AMA on remote work and personal branding and 3) interview questions. 

Help us help you: Take this quick survey to help out our brand partnerships teammates, who make this newsletter possible. Thanks!

Follow Friday: It's all about YouTube today. Cooking with Sam the Cooking Guy, science stuff with The Cozy Robot Show, theme park history with Defunctland, musical analysis with Todd in the Shadows, and travel with Minority Nomad. 

^{*This is sponsored advertising content}

FROM THE CREW

Love in the Time of Corona

Tomorrow, we are very excited to publish a special edition newsletter on dating and relationships during the coronavirus pandemic. And we all know the best part about dating and relationships are the funny/weird stories we tell each other after the fact.

If you went on dates during the pandemic (virtual or otherwise), we'd love to hear from you about your experience. You can share your stories anonymously here. 

FRIDAY PUZZLE

Think of a familiar four-word phrase that means "to be last." Together the first two words are a synonym for the last word. What phrase is it?

ANSWER

"Bring up the rear." That's a real knee-slapper. 

Source