Coinbase is literally printing money!
Ok, not literally "printing money", but they are making money hand over fist!
Coinbase reported that they did over $1 billion in revenue for the 2017 fiscal year.
Which may or may not sound large, but that completely smashed their estimates.
As late as September 30th Coinbase projected their revenue would be around $600 million for the year.
Which means that in the last 3 months, Coinbase blew away their revenue projections.
Their yearly revenue came in 66% higher than their projections just 3 months before the year ended!
That is something you don't see very often.
Some tidbits about the company:
Coinbase is based in San Francisco and is the largest cryptocurrency exchange in America.
They were recently valued at $1.6 billion, but that number has likely doubled by now.
Coinbase has over 13 million registered users, which makes it larger than the traditional brokerage exchange Charles Schwab.
Coinbase is one of the few fully licensed and regulated exchanges in the US that offers fiat on/off ramps.
It is also one of the few fully insured exchanges and keeps much of their customer funds in cold wallets, offline. Which makes them less vulnerable to hacks.
Overall, they are likely the safest and best exchange for Americans.
Just how fast was their customer growth?
Chew on this for a few minutes...
The company's billion dollar valuation likely more than doubled in less than 3 months.
There were multiple times late last year when Coinbase announced they were adding over 100,000 new users in a single day.
In one day they added roughly 300,000 new accounts!
Much of that had to do with the Thanksgiving and Christmas holidays where large numbers of retail users signed up on Coinbase for the first time.
Likely that was due to family members and friends telling each other how much money they had made over the year investing in bitcoin and other cryptocurrencies.
The bitcoin mania was felt in full force at Coinbase.
Overall, it is a good time to be in the cryptocurrency exchange business!
Stay informed my friends.
Sources:
Image Sources:
https://www.dreamstime.com/stock-illustration-printing-money-new-dollar-bills-image42287954
https://www.coinbase.com/dashboard
Follow me: @jrcornel
Fractional reserve crypto lol
It will happen soon, it is the only true currency for international trade not subjective to government manipulation. Crypto = Free Market
haha... soon people will do payments only with cryptocurrency
Selling picks and shovels..
Haha well said!
Definately, in a gold rush, it is not the miners that win but the ones that sell the tools.
Good post, now after making all that money I hope they invest some back into the business because at times they are very slow, thanks mike
Agreed. I would imagine 6 months from now their customer service will be greatly improved.
Let’s hope so, cheers for your reply thanks mike
PRoud to be a new Coinbase customer! Just wished their checking account purchases settled faster. Gonna have to switch to the volume controlled Debit Card for faster settlement.
As exchanges are making so much money, hopefully they will reinvest some of it in customer services. Waiting for 3 weeks for tickets to be answered at two different exchanges at present. Not good.
I believe that is exactly what is happening. Coinbase recently doubled their staff, I think I read somewhere that they were planning on even doubling it again from there in the coming months.
They all need to hire more staff. Wait times are ridiculous. Crypto is supposed to replace the antiquated banking system yet most exchanges are closed to new customers at present and are taking weeks to process withdrawals and deposits and to respond to customers.
It's not easy finding people with any sort of skill who want to work in this country.
They should have factored that in when they accepted thousands of new sign ups that need to be verified! Instead they just thought of all the fat fees and screw the existing customer base!
Yes, could not get approved for over 2 weeks!
I bet they are having to gear up on all fronts to take on so many new accounts in such a short space of time, and all the problems that brings to support as a result. It’s pretty frustrating for users with a problem they need solving pronto, but on the other hand I can see why Coinbase could struggle to service so many users, so many of them brand new.
Sign up is pretty automatic but verification of ID etc is not. The issue is as soon as they start to get swamped, things slow down and people submit more tickets, making the situation worse. I have had issues with other exchanges. I’m still waiting for a withdrawal I made on 30 Dec 17 on one exchange and on another, they suspected hacking so locked the account down (good) but then haven’t responded to tickets for two weeks and won’t allow trading again at present (bad).
Right on. There has to be a consolidation coming so these exchanges can scale. As of this comment its been 3+ weeks and i have yet to hear back form a single exchange. Forget about actually getting verified so I can trade. No wonder the markets have taken a hit.
Customer service is the name of the game in today's business environment.
Glad they are making money. Wish they would give more back to the community.
Isn't providing a valuable service enough?
I wish I could buy some stock in Coinbase! They should release their own crypto token.. Is that the idea behind Ethos?
Man, if only I had thought about creating an exchange before the crypto boom..
Me too😩
good work
thank you for sharing
Love it👍
Coinbase is pretty much the best option in the states.
Not Gemini? Personally I use Kraken over Coinbase because I need to deposit EUR and it doesn’t have pumped up coin prices.
I did not like Gemini due to the fact they asked for an ID, Coinbase was just some info about my bank account, I did not feel comfortable uploading my ID to Gemini, so yeah, coinbase was my only choice.
Unless things changed, that is what I remember about not choosing Gemini
When to comes to depositing fiat I think that is the way it is going to go. Decentralized exchanges are great, but it won't surprise me if the banks and payment processors refuse to support them.