Coinbase is one of the leading and arguably most popular cryptocurrency exchanges in the world. Based in the US, it is used all over the globe and has more than 10 million users as of September 2017. It has experienced an impressive growth in the past year and has seen its popularity soar in the cryptocurrency community.
Coinbase beats its revenue objective for 2017
The exchange has had an incredible year, with the number of users increasing exponentially every day as cryptocurrencies were gaining traction. With Bitcoin becoming more and more popular amongst investors, and the price of the digital asset bullishly rising month after month, users have rushed to register on the platform to purchase it. The increase in popularity of other currencies also benefited the exchange. At some moments in November and December, the crypto exchange was registering tens of thousands of new users per day. In addition to the huge increase of new users, the exchange beat its revenue objective for the year. Originally predicting a $600 million annual revenue for the year 2017, the company went way over, making $1 billion. This is really impressive considering that the market of virtual currencies is still in its early stages.
Why is Coinbase so popular?
Coinbase can be defined as a point of entry for many new investors in digital currencies. It is where most first-time users will buy their first BTC, BCH, ETH or LTC. Its ease of use and welcoming interface provides a comfortable experience when buying the mentioned virtual currencies. This is another strong point, there are not too many altcoins, which makes it easy for inexperienced individuals to understand the platform. However, the most important reason why Coinbase is so notorious is probably because one can buy coins instantly with Debit or Credit card, which is not the case for most other exchanges. Even though fees are considerably higher than on other exchanges, all the other factors make it so successful.
The exchange tells investors to back off
As a result of all the positive attention that the platform is getting, numerous investors and VCs are trying to fund and get on the Coinbase train. However, Coinbase claims it does not require funding at the moment and does not want shareholders to resell their shares on stock markets. In a statement, the company stated that as “As a private company, Coinbase does not allow trading of stock on secondary markets for a variety of reasons”. Doing so would result in sanctions as it violates company policy, according to the statement.
It will be interesting to see if the notorious exchange will remain number one in the upcoming year as altcoins keep growing. Specialized altcoin exchanges like Binance, Kucoin, or Bittrex could very well surpass the leader in the race of crypto exchanges. Wait and see.
TLDR: Cryptocurrency exchange Coinbase has seen incredible growth in the last year. It has surpassed its revenue objective and has added hundreds of thousands of users.