As bitcoin declines Coinbases app is dropping in popularity!

The bear market for bitcoin and other virtual tokens has dragged down Coinbase, a digital-asset exchange and darling of the crypto-startup world. As prices plunge, the exchange’s download ranking has fallen to its lowest level among US finance apps since April last year. The drop reflects the fleeting fancy of retail traders that comprise most of the buying and selling in crypto markets.

In December, Coinbase soared to the top spot for US finance apps, in terms of downloads, as bitcoin rocketed to a record of more than $19,000, according to App Annie data. The original crypto asset has lost around two-thirds of its value since then. Likewise, Coinbase’s app fell to 40th in the June download rankings.

Despite the hype for anything to do with crypto and blockchain, trading platforms that provide a platform for speculation are just about the only profitable businesses to have emerged from the craze. Coinbase reportedly has a valuation of approximately $8 billion, up from $1.6 billion in 2017. The San Francisco-based company, which makes money by charging fees for transactions, generated more than $1 billion in revenue last year.

But crypto euphoria has dissipated. These days, central bankers are taking turns bashing bitcoin and its cousins: The Bank of Finland (pdf) says the concept of digital money is a fallacy, while the Bank for International Settlements (pdf) said cryptocurrencies suffer from many shortcomings and do not work as money. This year, you would be hard pressed to find a fiat currency that has performed worse than bitcoin. Concerns about market manipulation and money laundering have also grown.

Coinbase co-founder and CEO Brian Armstrong said on Twitter that the company isn’t worried about short-term prices and negative headlines, and that downturns help clear out the people who are in the market for the the wrong reasons. And while some exchanges have balked at closer scrutiny from regulators, sometimes fleeing to jurisdictions with less oversight, Coinbase positions itself as being closely aligned with government watchdogs.