Coinbase Might Dominate the Cryptocurrency Economy

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Coinbase which is one of the largest digital currency platforms was in the right place when Bitcoin rallied in 2017. With assets worth $150 million in assets, 20 million customers, the 2017 revenue reported by the organization was around $1 billion. Currently, they want to stay ahead in the cryptocurrency economy.

While Coinbase is San Francisco’s organization known for leading in the crypto world, Coinbase was ranked number 10 in the 2018 CNBC Disruptor 50 list but does not think of itself that way.

COO and Coinbase president Asiff Hirji said;

“We don’t see ourselves as a crypto exchange. We are very focused on the establishment of the crypto economy. We see ourselves as an enabler of that future economy.”

A few months ago, Coinbase poached various employees from reputable organizations. Additionally, they have doubled the full time engineering employees, and this led to an increase in 100% in the corporation’s capacity. They are in expectation to gain double the capacity in the coming few months.

Last month, Coinbase bought Earn.com for around $100 million which helps the customers send and also receive digital currency by completion of micro tasks and also replying to mass market emails. Coinbase will also bring about earns CEO and founder and first technology officer.

Coinbase has been involved in a bullish trend like a cryptocurrency platform and was valued at $8 billion when it wanted to purchase earn. It, therefore, was valued at $1.6 billion during the last round of the venture capital financing in 2017.

Hirji said;

“What we provide is an on-ramp from the old economy to the new, from fiat to crypto. We need a bridge to get there, and we are providing that bridge.”

Coinbase which has around $225 million worth of funding from the New York’s stock exchange, Andreessen Horowitz and also the square union ventures didn’t comment in the valuation.

Competition for Coinbase is coming

The current move to involve itself in the venture capital and also other ventures is a building point as the other organizations join the crypto world. Square is considered one of the competitors who started its trading in crypto in January.

Dan Dolev said;

“If you’re only a one-trick pony, at some point you’re going to lose to competitors coming in like Square. Eventually, there will be another guy with a bigger offering. Coinbase has a huge first-mover advantage, but you see that these things don’t live forever. It’s always a risk to spread yourself too thin, but it’s also an opportunity.”

Coinbase wants to be a one-stop shop for the institutional investors. Therefore, they introduced products which might lure the “white glove” investor class.

Four new products were launched by Coinbase which are the Coinbase prime, the Coinbase institutional coverage group, Coinbase custody and also the Coinbase markets. Coinbase involved in the custody of close to $9 billion customer assets declared that there are billions in institutional money to be invested in cryptocurrencies.

Coinbase Vice President and GM, Adam White said;

“We think this can unlock $10 billion of institutional investor money sitting on the sideline. We see a rapid increase in attention awareness and adoption in the cryptocurrency market.”

Hirji further said that investors such as hedge fund want to be exposed to the sector but don’t want to play the choosing name A or B cryptocurrency. They have therefore contacted Coinbase for an opportunity to increase the space activity.

Coinbase has not yet suffered a hack, but the users are not confident in their security measures.

“They tell us that the No. 1 thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely,” the company wrote in a blog post.

Wall St. Shifts from bashing a bit to crypto backer

Wall Street interest in crypto rose with 287 crypto hedge fund from the current data. Only 20 hedge funds for crypto existed in 2016. Goldman Sachs might open a crypt trading desk.

Hirji said;

“We’ve looked at and invested in things that could be competitive to us.”

Adam white further wrote;

“We think this can unlock $10 billion of institutional investor money sitting on the sideline. We see a rapid increase in attention awareness and adoption in the cryptocurrency market.”

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