Coinbase and Its Dominance in Cryptocurrency Economy

by Aria Akachi Writer & Web marketing consultant

Coinbase is at an all-time high in the age of bit coin boom and the plans are to dominate the economy of cryptocurrencies. This platform has started bringing big shots from the Silicon Valley illegally for developing business. 

The way in which it hit the one billion revenue mark in the year 2017 predicts the outcome of this cryptocurrency. It is no doubt that Coinbase is one of the largest platforms of cryptocurrency. Its position was proper in 2017 keeping in mind the way in which the prices have soared. 

However, the company is not ready to place success with complacence. The fact that the revenue has touched one billion has motivated to harrow in money for maintaining the rank and position of this San Francisco based company to make the economy richer.

Assessing the Options

The company does not view its success similarly but the President and COO of Coinbase, Asif Hirji has stated that they want to add more to the economy rather than focus on the profits of the company. With the efforts of Coinbase to poach executives from different sources, there has been a massive increase in its capacity. They are planning to continue with this process in future. 

As the recent addition of the company, it has purchased Earn.com for hundred million dollars. However, there is another way to look at the developments of Coinbase. The deals and the revenue has not helped it much to add to its valuation rather it has been bullish many times as stated by experts in this arena. With cryptocurrency exchange fees comparison the scenario becomes vivid.

Approaching Competition for Coinbase

Moving into other businesses and venture capital market is one way to assure security of this platform and a way of handling competition. Depending on one thing for making profit thins you out in the world of business and you lose position to competitors. 

In addition to the new acquisitions, the company has also started offering an array of products to those investors that are wary about stepping into the volatile market. Four new products launched by the company are:

·         Coinbase Custody

·         Coinbase Institutional Coverage Group

·         Coinbase Prime

·         Coinbase Markets

With over nine million dollars that are in the custody of consumer assets, the company plans to invest more for boosting the digital currency with institutional money. Entities such as hedge funds have expressed interest in this segment and the primary reason for the launch of Index Fund. 

With the help of this fund a majority of US investors are exposed to all the digital currencies that are included in the list of Coinbase. However, the investors still need security for which Coinbase Custody was launched in November last year. The only reason for which the company is taking time to begin with other ventures is the absence of a custodian protecting the digital assets.

Wall Street and Cryptocurrency

Interest of Wall Street in cryptocurrency is evident from crypto hedge funds that have jumped to 287 from 175 according to the latest data. Funds started coming one after the other and provides positive hint. 

Investors must understand cryptocurrency exchange fees comparison and the fact that it has the power to shake the entire financial system.

Criticism from Different Sources

The company has attracted criticism as well as it has preferred to keep its entity limited to four cryptos. The rise in the exchange fees is considered as the major hurdle. 

Security issues have also prompted the company to lessen the number of coins that it could have added. The company is making efforts to resolve issues with authorities for this purpose and to get more bank licenses.

Looking Back at Companies

Even though problems do exist due to cryptocurrency exchange fees comparison efforts are on to get more reasonable solutions. It has taken a lot for Coinbase to reach the pinnacle and the launch of cryptocurrency sooner than it was expected has doubled the profits.

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Created on May 25th 2018 23:50. Viewed 395 times.

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