coinbase

 The price of bitcoin skyrocketed in the year 2017. Coinbase, one of many world's largest cryptocurrency exchanges, was in the proper place at the proper time for you to capitalize on the spike in interest. Nevertheless, coinbase isn't thinking about taking its crypto gains for granted. To stay ahead in a bigger cryptocurrency market, the business is plowing cash back into their master plan. Up until 2017, the company's revenue was reported at $1 billion and over $150 billion of assets were traded across 20 million customers.

Coinbase, a San Francisco based company, is called the leading cryptocurrency trading platform in the United States and with its continued success, landed at the No. 10 spot on the CNBC Disruptor list in 2018 after failing to help make the list the last two years.

On their way to success, Coinbase has left no stone unturned in poaching key executives from New York Stock Exchange, Twitter, Facebook, and LinkedIn. In today's year, how big is its full-time engineering team has almost doubled.

Earn.com was bought by Coinbase this April for $100 million. This platform allows the users to send and receive digital currency while replying to mass market emails and completing micro tasks. Currently, the business is planning to create a former Andreessen Horowitz venture capitalist, Earns founder and CEO as its first-ever chief technology officer.

According to current valuation, Coinbase valued itself at about $8 billion when it attempt to buy Earn.Com. This value is much higher compared to valuation of $1.6 billion that has been estimated at the past round of venture capital financing in the summertime of 2017.

Coinbase declines to comment on its valuation despite the fact so it has more than $225 million in funding from top VC's including Union Square Ventures, Andreessen Horowitz and also from the New York Stock Exchange.

To meet the needs of institutional investors, the New York Stock Exchange is planning to start its cryptocurrency exchange. Nasdaq, a rival of NYSE is also contemplating the same move.

• Competition is Coming

As competing organizations check out have a bite from the Coinbase's business, Coinbase is trying to other venture capital opportunities in an effort to build a moat across the company.

Dan Dolev, a Nomura instant analyst, said that Square, a company run by Twitter CEO Jack Dorsey could eat into Coinbase's exchange business since it started trading cryptocurrency on its Square Cash app in January.

Based on the estimates by Dolev, Coinbase's average trading fees were roughly 1.8 percent in 2017. Fees this high could drive the users to other cheaper exchanges.

Coinbase is looking to become a one-stop shop for the institutional investors while hedging its exchange business. To lure for the reason that white glove investor class, the business announced a fleet of new products. This class of investors has been especially cautious to dive in to the volatile cryptocurrency market.

Coinbase Prime, The Coinbase Institutional Coverage Group, Coinbase Custody and Coinbase Markets are the merchandise launched by the company.

Coinbase feels there are billions of dollars in institutional money which can be committed to the digital currency. It already has the custody of $9 billion in customer assets.

Institutional investors are concerned about security despite knowing Coinbase never suffered a hack like various other global cryptocurrency exchanges. Coinbase president and COO said that the impetus of launching the Coinbase custody last November was having less trusted custodian to guard their crypto assets.

• Currently Wall Street Shifts from Bashing Bit to Cryptocurrency Backer

According to latest data available from Autonomous Next Wall Street's, fascination with cryptocurrency appears to be increasing. At present, you will find 287 crypto hedge funds, during 2016, there have been only 20 cryptocurrency hedge funds that existed. Goldman Sachs has even opened a cryptocurrency trading desk.

Coinbase in addition has introduced Coinbase Ventures, which is an incubator fund for early-stage startups employed in the cryptocurrency and blockchain space. Coinbase Ventures has already accumulated $15 billion for further investments. Its first investment was announced in a startup called Compound allowing one to borrow or lend cryptocurrency while earning a pursuit rate.

At the start of 2018, the business launched coinbase Commerce, allowing merchants to accept major cryptocurrencies for payment. Another bitcoin startup was BitPlay, which recently raised $40 million in venture money. This past year BitPlay processed more than $1 billion in bitcoin payments.

The proponents of blockchain technology feel that later on, cryptocurrency will be able to get rid of the requirement for central banking authorities. In the act, it will lower costs and create a decentralized financial solution.