From Recode
Coinbase, the bitcoin trading broker that has exploded in popularity as cryptocurrencies surge and nose dive, has encountered an unusual problem for a Silicon Valley startup: Too many investors are trying to get in.Read more: https://www.recode.net/2018/1/22/16911692/cryptocurrency-bitcoin-trading-coinbase-revenue-secondaryThe six-year-old company crossed $1 billion in revenue last year, Recode has learned from industry sources, a tremendous rise fueled by layman interest in both bitcoin and competing virtual currencies that users can buy and sell through the app.
The company’s valuation has likely at least doubled since its last valuation of $1.6 billion in August. Coinbase was only expected to do about $600 million in yearly revenue as of September 30, according to people with knowledge of the figures, but bitcoin’s run between Thanksgiving and Christmas boosted the company’s 2017 revenue to over $1 billion.
Bitcoin is altogether only worth about $175 billion in market value as of today’s trading price of about $10,500 — a 50 percent drop from just a month ago. And so Coinbase’s $1 billion in revenue suggests it has become the most-used broker for bitcoin transactions.
Coinbase makes money not on bitcoin’s price but on the volume of trades — charging both the buyer and seller usually a fee between 0.25 percent and 1 percent of the total transaction size through the site. The company serves as both an exchange and a broker of deals, though it does not serve as a market maker that holds bitcoin.
This is a very impressive figure and might be the reason markets shouldered the negative Korean news today. As Asia cracks down while the USA ramps up we could see whole different type of flippening in the crypto ecosystem. With the major capital markets focusing more in the west.
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Crazy amounts of money has poured in to this market overnight Its crazy haha
It's amazing what a giant Coinbase is in the US while only offering such a limited amount of options. Id imagine they are going to grow their offering, and I also hear they are probably going to go public as well, I cant even imagine the IPO
Honestly I think simplicity is the key. People who are not well versed in the crypto world would be overwhelmed by the number of currencies on Binance, Bittrex, etc. I think offering only 3 or 4 currencies is probably why Coinbase is so attractive to the masses.
This is certainly a valid point, simplicity sells, too many options and no purchase
The TAX man ignored crypto forever as a facade and could care less .. as soon as they saw billions pouring in ..and companies making a fortune with ICO's rather than IPO's ..
So down comes the tax hammer ..bunch of Greedy PIGS :/
There are two certainties in life. Death and Taxes.... unless you honestly think that Anarchy is a feasible solution for managing society.
But the value of bitcoin is decreasing..
Great post! I’m a Coinbase account holder and this news makes it more exciding.
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Woah! Great news for the founders and early investors in Coinbase. They have one of the simplest user interfaces of any of the platforms I've used. They keep their selection of coins to a minimum for good reason. Security. For that same reason, I've heard of their Vault being used by bigger, institutional investors.
Coinbase is a ripoff.
Referring to their fees?
yes
If you can cater to services and products around crypto you don’t have to worry about the price of crypto itself so much, Coinbase excellent example!!!
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