Coinbase said last week that its first-quarter profit is expected to be between $730 million and $800 million, more than double its profit for all of 2020. Revenue in the first three months of 2021 could exceed last year's entire revenue of $1.3 billion. On the 14th of this month, Coinbase plans to list directly on Nasdaq, which will become the first listed company in the encryption field.
Coinbase's successful listing is a victory for believers in the encryption field
Bitcoin has been criticized since its inception. Because its essence is a virtual currency, there is no government endorsement, and the price fluctuates violently, a large number of people are not optimistic about it. But with the development and application of blockchain technology, more and more people began to pay attention to Bitcoin again, even though many people initially valued its speculative nature. But with the understanding of blockchain technology and the field of encryption, they have already regarded Bitcoin as a belief, believing that blockchain is a technology for a new era, and Bitcoin is the best means to change today's financial model.
The development of the encryption field has been all-encompassing. Real-world financial products such as loans, insurance, and options have been put on the blockchain. This not only enriches the types of transactions that investors can trade, but also challenges centralized finance. Even traditional financial institutions that dismissed the encryption field in the past are now running into the market. However, at present, encryption transactions do not have a normative regulatory mechanism, and due to various policy restrictions, it cannot enter the mainstream market. Coinbase, one of the most famous cryptocurrency exchanges in the world, has 56 million verified users and is adding about 13,000 new retail customers every day, according to cryptocurrency analytics firm Messari. Due to its trust and brand recognition, Coinbase has won the favor of a large number of crypto investors, and its position in the crypto field can be described as pivotal. The listing of Coinbase is also the first step in the mainstream of the encryption field.
Coinbase’s road to censorship
In 2015, Coinbase became the first bitcoin exchange with a formal license in the United States.
On January 17, 2017, the head of the New York Department of Financial Services (NYDFS) announced that it had passed the license application for the Bitcoin trading platform Coinbase, which means that Coinbase’s operation in New York State, USA has finally obtained official certification. NYDFS stated that it conducted a comprehensive review of Coinbase's application, including the company's anti-money laundering mechanism, capital, consumer protection, and network security policies. In the future, under its supervision, Coinbase can provide local services for buying, selling, receiving and storing bitcoins. As one of the most influential virtual currency exchanges in the world.
Coinbase’s financials
Coinbase has raised more than $500 million in seven funding rounds since September 2012. According to data, Coinbase’s profit in the first quarter of this year is expected to be between US$730 million and US$800 million, more than double the profit for the whole of 2020. Revenue in the first three months of 2021 likely surpassed last year's entire revenue of $1.3 billion, and it holds more than $200 billion in cryptocurrencies on its platform. Coinbase's strong financial position provides a solid foundation for its listing.
Coinbase product categories
Coinbase initially focused on transactions, and later gradually established its own payment services, expanded its business scope, and added models such as lending, pledge, and investment. The development of the new service model has also enabled Coinbase to achieve double profits, and at the same time established its own strong service system. For example, on March 6, 2018, Coinbase announced the launch of its first index fund to enter the asset management industry. Through the fund, investors can build exposure to all assets listed on Coinbase’s institutional exchange GDAX, which will be weighted by market capitalization.
In addition, Coinbase has also integrated 15 different blockchain protocols, and customers can trade more than 90 cryptocurrencies, and the variety of products is still increasing. They also provide a business platform for businesses to accept cryptocurrencies and custodial services for institutions interested in holding cryptocurrencies.
Coinbase Coverage User Situation
Coinbase has 56 million verified users and is adding about 13,000 new retail customers every day. In addition, they already have the largest market in the United States, and they are continuing to make progress overseas, covering 100+ countries.
Coinbase's finances, users, and business model have attracted a high degree of attention in the encryption field, and its every move affects the trend of the encryption field. Therefore, whether the listing on the 14th is successful or not is a big step forward for the encryption field, let us wait and see!
