The price of bitcoin peaked sharply in 2017. Coinbase, one of the world’s largest cryptocurrency exchanges, was in the right place at the right time to benefit from rising interest rates. Even so, Coinbase has no interest in simply taking advantage of its crypto benefits. To stay ahead of the larger cryptocurrency market, the company is also investing in their technology. As of 2017, the company’s revenue was estimated at $ 1 billion and more than $ 150 billion in assets were sold to 20 million customers.
Coinbase, a San Francisco-based company, known for being the world’s leading mobile operator and continues to win, reached 10th place on the 2018 CNBC Disruptor list after failing to make a list two years ago.
On their successful path, Coinbase left no stone unturned in the pursuit of the New York Stock Exchange, Twitter, Facebook, and LinkedIn. In the same year, the size of his full-time technical team doubled.
Earn.com was bought by Coinbase this April for $ 100 million. The platform allows users to send and receive digital currency by answering major market emails and completing small tasks. In the meantime, the company is planning to bring in former former capitalist Andreessen Horowitz, founder Earns and CEO as their first technical chief.
According to a recent calculation, Coinbase made about $ 8 billion when it first bought Earn.Com. This cost is much higher than the $ 1.6 billion estimate estimated at the last financial year in the summer of 2017.
Coinbase is refusing to comment on its value despite having more than $ 225 million from top VCs including Union Square Ventures, Andreessen Horowitz and the New York Stock Exchange.
To meet the needs of institutional investors, the New York Stock Exchange is planning to launch a cryptocurrency exchange. Nasdaq, a NYSE partner, is considering the same proposal.
• The competition is coming
While competing corporations are looking to bite into the Coinbase business, Coinbase is looking for another marketing opportunity by trying to create a roundabout for the company.
Dan Dolev, an active researcher for Nomura, said Square, a company run by Twitter CEO Jack Dorsey could consume the Coinbase exchange business because it started selling cryptocurrencies on its Square Cash app in January.
According to Dolev’s estimates, Coinbase’s average trading volume was about 1.8% in 2017. These higher payments could drive users to other low-cost locations.
Coinbase is looking to become a trading platform that they will use to launch their business. To attract the attention of the white gloves management team, the company announced new features. This trading group has been very careful to enter the cryptocurrency market.
Coinbase Prime, Coinbase Institutional Coverage Group, Coinbase Custody and Coinbase Markets are the company’s subsidiaries.
Coinbase estimates that there are billions of dollars in labor costs that can be calculated in digital currency. It already has a $ 9 billion client base.
The founders of the organizations are worried about security even after realizing that Coinbase has never acted as a scapegoat as a global exchange. The president of Coinbase and COO said the reason for the launch of Coinbase last November was the lack of security regulators to protect their crypto assets.
• Currently Wall Street Shifts from Bashing Bit to Cryptocurrency Backer
According to a recent report from Autonomous Next Wall Street, interest in cryptocurrency seems to be growing. Currently there are 287 crypto hedge funds, while in 2016, there were only 20 cryptocurrency funds available. Goldman Sachs has reopened a cryptocurrency trading table.
Coinbase has also released Coinbase Ventures, which is a first-class cryptocurrency fund operating in cryptocurrency and blockchain space. Coinbase Ventures has already raised $ 15 billion to raise additional funds. His first installment was announced at the start of a compound called Compound which allows a person to borrow or lease cryptocurrency funds while receiving interest.
In early 2018, the company launched Coinbase Commerce, which allows merchants to accept large payments. Another start was BitPlay, which recently raised $ 40 million in service fees. Last year BitPlay made more than $ 1 billion in bitcoin payments.
Proponents of blockchain technology believe that in the future, financial reforms could eliminate the need for central bankers. By doing this, it will reduce costs and create a financial solution.
• Security Monitoring Remaining Extreme
In order not to be found on only four additions, Coinbase has strongly criticized it. But they should be cautious as U.S. officials discuss how to apply other technologies.
In the case of cryptocurrency exchanges such as Coinbase, the issue of concern is whether cryptocurrencies or shares are secured under the control of the Securities and Exchange Commission. Coinbase is allowed to add new currencies because the SEC announced in March that it will apply security rules on all cryptocurrency exchanges.
The Wall Street Journal reported that Coinbase met with SEC officials to register it as a legitimate trading platform and an electronic trading platform. In that case, it would be easier for Coinbase to invest more money and follow security rules.