- Coinbase drove the bitcoin boost to $150 billion in property traded across 20 million customers and reached the $1 billion revenue mark in 2017.
- The crypto currency exchange is enriched with way stronger strategies to rule a crypto economy.
- It is encouraging top professionals from Silicon Valley to make big investments in company capital, index fund and institutional investor businesses.
Being the largest digital currency platform, Coinbase was at the perfect position at the crucial moment, when the bitcoin cost was mounting in the year 2017. However, the company is having no interest in being relaxed about the crypto advantages. Enriched with around 150 billion dollar in assets traded more than twenty million customers, and having the significant revenue of 1 billion dollar in the year 2017, it is dragging finances back for a key strategy to remain a leader in the huge crypto currency arena.
However, the San Francisco based organisation is still considered as the top name in crypto trading arena. But, Coinbase at the tenth position in the 2018 CNBC Disruptor 50 list is still enjoying a good run.
Coinbase president and COO Asiff Hirji says-“We don’t see ourselves as a crypto exchange,” “We are very focused on the establishment of the crypto economy. We see ourselves as enabler of that future economy.”
In the past few months, Coinbase has managed to drag attention of top professionals from renowned companies like LinkedIn, Facebook, Twitter, etc. Coinbase has already managed to double its technical team. The result for the same is quite evident as well; the company has managed to witness a 1k percent growth in its ability. As per the sources (letter released in May, as an answer from New York Attorney General) the company is aiming to double the capacity in upcoming days.
The company (Coinbase) had bought Earn.com at a mammoth amount of 100 million dollar. Earn.com lets its users deliver and get digital currency to communicate with whole market mails and achieving smaller challenges. As per the acquisition, the organisation is planning to have CEO of Earn.com Andreessen Horowitz, employing as its chief technology officer. Earn.com was initially controlled by Andreessen Horowitz and Tyler and Cameron Winklevoss.
However, there still certain aspects about which Coinbase has not managed to achieve at the same level as of Bitcoin. The company is still enjoying a leading name in the crypto currency world. According to Coinbase, it is a company of worth more than 8 billion dollar (when it went for buying Earn.com), which is indeed way higher than 1.6 dollar at its past round of financial report in the year 2017.
“What we provide is an on-ramp from the old economy to the new, from fiat to crypto,” Hirji said. “We need a bridge to get there, and we are providing that bridge.”
Interesting here is to mention that Coin is having more than 225 million dollars of funding received from top VCs, which includes prominent names like Andressen Horowitz, Union Square Ventures, which also includes New York Stock Exchange. However, Coinbase is yet to release its recent financial report.
Also Read: How to Create Your Own Cryptocurrency
It is here to note that New York Stock Exchange is in all efforts to come up with its own crypto currency exchange, to address the demands of the professional investor for trading Bitcoin. Moreover, this move is said to be the result of tough competition received from Coinbase. The strategy to enter the other financial and business segment is pretty much a result of witnessing other competitors applying similar strategies.
Square, which is the company of Twitter CEO Jack Dorsey, is considered as a top competitor of anyone in crypto world. The company started making crypto trading through its Square Cash application in January, and is expected to grab the most of Coinbase exchange business in near future. This has been speculated by Nomura Instinet analyst Dan Dolev.
“If you’re only a one-trick pony, at some point you’re going to lose to competitors coming in like Square,” he said. “Eventually there will be another guy with a bigger offering.”
Crypto exchange Coinbase goes after institutional investors from CNBC.
Dolev speculated that Coinbase’s average trading amounts were on an average 1.8 percent in 2017. That alone could make interested people to comparatively cost-effective exchanges.
“Coinbase has a huge first-mover advantage, but you’re seeing that these things don’t live forever,” he said. “It’s always a risk to spread yourself too thin, but it’s also an opportunity.”
In fact, Coinbase is also equivocating its trading by aiming to be a leading name among the professional investors. The company has declared about a range of products to fetch interest of investors, especially the “white glove” investor group that has been explicitly careful about entering in to the impulsive, market scenario.
The four new products that the company unveiled are- Coinbase Custody, Coinbase Markets, The Coinbase Institutional Coverage Group and Coinbase Prime.
Adam White, Coinbase’s vice president and general manager, told CNBC that
We think this can unlock $10 billion of institutional investor money sitting on the sideline,”. “We’re seeing a rapid increase in attention awareness and adoption in the cryptocurrency market.
According to Hirji, investors like hedge funds are keen to make the sector apparent, but are not interested in “picking name A or name B” crypto currency. Hedge funds and other professional investors have communicated Coinbase showing their interest to hasten the process in the space, and that was a basic reason that Coinbase introduced an index fund in March.