The price of Bitcoin went up in 2017. Coinbase, one of the world’s largest cryptocurrency exchanges, was in the right place to take advantage of rising interest rates at the right time. However, Coinbase is not interested in accepting its cryptocurrency profits. To keep the cryptocurrency market moving forward in a much larger market, the company is returning money to its main plan. By 2017, the company’s revenue was $ 1 billion and more than $ 150 billion in assets were traded among 20 million customers.
Coinbase, a San Francisco-based company, is known as the leading cryptocurrency trading platform in the United States and with its continued success, it ranked 10th on the CNBC Disruptor list in 2018, having failed to make the list in the previous two years. .
Coinbas has done nothing but succeed in key positions on the New York Stock Exchange, Twitter, Facebook and LinkedIn. This year, the size of its full-time engineering team has almost doubled.
Earn.com was bought by Coinbase in April for $ 100 million. This platform allows users to send and receive digital currency while responding to mass market emails and performing micro tasks. Today, the company plans to bring in Andreessen Horowitz, a former venture capitalist, founder and CEO of Earns, as its first technology director.
According to current estimates, Coinbas was worth about $ 8 billion when it bought Earn.Com. This value is much higher than the $ 1.6 billion estimate estimated in the last round of venture capital financing in the summer of 2017.
Coinbas is refusing to comment on its valuation despite VC funding of more than $ 225 million, including Union Square Ventures, Andreessen Horowitz and the New York Stock Exchange.
To meet the needs of institutional investors, the New York Stock Exchange intends to begin its cryptocurrency exchange. Nasdaq, a rival to the NYSE, is also proposing a similar move.
• Competition Comes
As competing organizations want to take a bite out of Coinbase’s business, Coinbase is looking for other venture capital opportunities to build a trench around the company.
Dan Dolev, an immediate analyst at Nomura, said Square, a company led by Twitter CEO Jack Dorsey, could eat into the Coinbase exchange business because it began trading cryptocurrencies in the Square Cash app in January.
Dolev estimates that Coinbase’s average trading shares were around 1.8 percent in 2017. Users can switch to other cheaper exchanges that are high.
Coinbase aims to become a one-stop shop for institutional investors while covering its exchange business. To attract white glove investors to this class, the company announced a fleet of new products. This class of investors has been particularly cautious in immersing themselves in the volatile cryptocurrency market.
These are products launched by Coinbase Prime, The Coinbase Institutional Coverage Group, Coinbase Custody and Coinbase Markets.
Coinbas believes there are billions of dollars in institutional money that can be invested in digital currency. It already has $ 9 billion in custody on customer assets.
Institutional investors are concerned about security, even though Coinbas knows that it has never been hacked like other global cryptocurrency exchanges. The president of Coinbas and the COO said last November that the impetus for launching Coinbase surveillance was the lack of reliable custodians to protect their cryptocurrencies.
• Currently, the Wall Street Bashing Bit is changing from Cryptocurrency Backer
According to the latest data available on Autonomous Next Wall Street, there seems to be a growing interest in cryptocurrency. There are currently 287 cryptocurrency hedge funds, compared to only 20 cryptocurrency hedge funds in 2016. Goldman Sachs has also opened a cryptocurrency trading desk.
Coinbase has also introduced Coinbase Ventures, which is an incubator fund for start-ups working in the cryptocurrency and blockchain space. Coinbase Ventures has already raised $ 15 billion to make more investments. His first investment was announced in a startup called Compound, which allows him to borrow or borrow cryptocurrency while earning an interest rate.
In early 2018, the company launched Coinbase Commerce, which allows merchants to accept major cryptocurrencies for payment. Another bitcoin startup was BitPlay, which recently raised $ 40 million in venture capital. Last year, BitPlay processed more than $ 1 billion in bitcoin payments.
Proponents of blockchain technology believe that in the future, cryptocurrency will be able to eliminate the need for central bank authorities. In the process, it will reduce costs and create a decentralized financial solution.
• Regulatory security remains high
To keep access to four cryptocurrencies restricted, Coinbas has been widely criticized. But they need to be careful while U.S. regulators consider how to take care of certain uses of the technology.
For cryptocurrency exchanges like Coinbase, it is worrying whether or not cryptocurrencies will be under the jurisdiction of the Securities and Exchange Commission. Coinbase is slow to add new coins, as the SEC announced in March that it would apply security laws to all cryptocurrency exchanges.
The Wall Street Journal reported that Coinbase had teamed up with SEC officials to register as a licensed brokerage and e-commerce site. In this situation, it would be easier for Coinbase to accept more coins and also comply with security rules.