The price of Bitcoin rose in 2017. Coinbase, one of the world’s largest cryptocurrency exchanges, was in the right place at the right time to take advantage of the spike of interest. However, Coinbase is not interested in accepting crypto earnings as normal. To advance in a larger cryptocurrency market, the company is again raising money for its master plans. By 2017, the company’s revenue was reported at $ 1 billion and more than $ 150 billion in assets had been sold among 20 million customers.
Coinbase, a San Francisco-based company known as the leading cryptocurrency trading platform in the United States, fell to 10th place in 2018 on the CNBC Disruptor list in 2018 with its continued success. .
On the way to success, Coinbase, the New York Stock Exchange, Twitter, Facebook and LinkedIn did not pose a major poaching problem. The number of staff engineers has almost doubled this year.
Earn.com was bought by Coinbase for $ 100 million this April. The platform allows users to send and receive digital currency while responding to mass market emails and performing micro-tasks. Currently, the company plans to bring in former venture capitalist Andreessen Horowitz, Earns founder and CEO as chief technology officer for the first time.
According to current estimates, Coinbase valued itself at $ 8 billion when it began buying Earn.Com. This value is significantly higher than the value estimated at $ 1.6 billion in the last round of venture capital financing in the summer of 2017.
The top VCs, including Coinbase, Union Square Ventures, Andreessen Horowitz and the New York Stock Exchange, declined to comment on the valuation, despite having more than $ 225 million in funding.
To meet the needs of institutional investors, the New York Stock Exchange plans to launch its own cryptocurrency exchange. NYSE rival Nasdaq is considering a similar move.
• Competitive Income
While rival organizations are trying to take something from Coinbase’s business, Coinbase is looking for other venture capital opportunities to build a ditch around the company.
Nomura instant analyst Dan Dolev said Coinbase could eat in the exchange business as Square, led by Twitter CEO Jack Dorsey, began trading cryptocurrencies in the Square Cash application in January.
According to Dolev’s estimates, Coinbase’s average trading fee in 2017 was about 1.8 percent. These high fees can take users to other cheaper exchanges.
Coinbase wants to be a window for institutional investors while maintaining the exchange business. To attract this white glove to the investor class, the company announced a new product park. These investors were especially careful to dive into the class of volatile cryptocurrency markets.
Coinbase Prime, Coinbase Institutional Coverage Group, Coinbase Guardianship and Coinbase Markets are the products launched by the company.
Coinbase feels there are billions of dollars of institutional money that can be invested in digital currency. It already has a $ 9 billion customer base.
Although Coinbase knows that it has not seen any attacks like other global cryptocurrency exchanges, institutional investors are concerned about security. The president of Coinbase and the COO said the impetus to take control of Coinbase last November was the lack of a trusted guardian to protect crypto assets.
• Currently switching from Wall Street Bashing Bit to Cryptocurrency Supporter
According to the latest information from the Autonomous Next Wall Street, interest in cryptocurrency is growing. There are currently 287 crypto currency hedge funds, compared to only 20 crypto currency hedge funds available in 2016. Goldman Sachs even opened a cryptocurrency trading desk.
Coinbase also introduced Coinbase Ventures, an incubator fund for early stage startups working in cryptocurrency and blockchain. Coinbase Ventures has raised more than $ 15 billion for future investments. The first investment was announced at a startup called Compound, which allows you to lend or borrow cryptocurrency while earning interest rates.
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 used more than $ 1 billion in bitcoin payments.
Proponents of blockchain technology believe that cryptocurrency may eliminate the need for central banks in the future. During this period, costs will be reduced and a centralized financial solution will be created.
• Regulatory Security remains tight
Coinbase has been widely criticized for limiting access to the four cryptocurrencies. But U.S. regulators need to be careful when considering how to provide police with certain uses of the technology.
A concern for cryptocurrency exchanges such as Coinbase is whether cryptocurrencies are securities 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 impose security laws on all cryptocurrency exchanges.
The Wall Street Journal reported that Coinbase met with SEC officials to register itself as a licensed broker and e-commerce site. In such a scenario, it would be easier for Coinbase to support more coins and follow security rules.