Coinbase: Creating an Unbarred Financial Ecosystem.

The Growing Sentiment Surrounding Coinbase

Coinbase (NASDAQ: COIN) is a cryptocurrency exchange which allows users to buy and sell a wide variety of cryptos along with other financial services.

As cryptocurrencies continue to become more intertwined in the lives of many and our financial ecosystem, Coinbase is looking to take advantage of that demand.
Bitcoin, Ethereum, and the infamous Dogecoin grew in anticipation of the Tesla CEO Elon Musk hosting Saturday Night Live (SNL). Unfortunately after the event, the price of Dogecoin crashed. However, Dogecoin wasn’t the only hyped up coin. Ethereum reached $4,000 per token, which extended to over $4,300 shortly after. The cryptocurrency market continues to be volatile, this is expected as it’s a very fragile area especially if mindset or sentiment changes from figures in this booming field.

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Regardless, these cryptos have all surged in this market cycle which has inevitably created a new group of investors who are searching the “next Bitcoin.” This type of thinking has led to massive amounts of FOMO or FUD which can make many individuals lose their money on crypto coins which are being pumped online by third parties. These third parties are looking to take advantage of the less educated groups which are involved in this new technology.

Since Coinbase doesn’t rely on trends to stay afloat, they have grown steadily in the crypto space as they offer products and services which make the ecosystem more user friendly and easier to understand.

Coinbase collects fees on transactions to generate revenues, as well as becoming a place for institutions to conduct their transactions in the cryptocurrency markets.
Recently, crypto as a form of payment for online stores has been a very heavily talked about topic worldwide. With growing demand, Coinbase met the needs by offering a crypto commerce option for businesses who would like to accept payments in their favorite currencies. This allows customers to purchase products online in a secure and trusted way.

Coinbase and Crypto Surge

As of 2020, Coinbase had 43 million verified users using their platform to buy, sell, and store their cryptos, along with 2.8 million monthly transacting users. Recently in their Q1 earnings Coinbase announced that revenue has grown to $1.8 billion. Coinbase also grew their cryptocurrency exchange platform to more than 56 million verified users, which includes over 8,000 institutions. Despite these results, they slightly missed analysts
expectations even with quarterly revenue surging year-over-year by over 200%.

This growth was a result of the massive surges in cryptocurrency demand and the skyrocketing prices over the past year. Since the start of 2021 there has already been countless cryptocurrencies which have been pumped and then dumped. Coinbase does not yet offer these coins on their exchange as they are fairly selective with what is allowed and what is not.

By Coinbase putting these measures in place, they prevent their users from making poor
investment decisions or losing their money in their account. This makes Coinbase much more trusted by users not yet familiar with crypto’s as they don’t know what to look for in the descriptions of select crypto coins in the first place.

Overall Coinbase is set to make it easy for a broader audience of the world to begin thinking about their first investment in cryptocurrency. By creating an exchange centred around a flourishing ecosystem, Coinbase can bring a sense of security to their platform which other exchanges may not have due to not being user friendly or easily accessible to the average person.

The outlook over the long term seems to still remain positive as the adoption curve is still in effect for crypto and doesn’t look to be slowing anytime soon.

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Andre Mitchell
Andre Has been trading financial markets for 5+ years. Has consistently grown small account sizes to medium sizes. Andre is a long term income investor that primarily operates in the stock options market and loves sharing his insight and experience with people who love investing and growing their financial wealth.
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