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
fictional reserve ;)
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?
This goes to show that there are billions of dollars flowing in the crypto market
Bitcoin will hit 2-5 million dollars at one point in the near future
Hahahaha you crazy! 50k by the end of this year and that’s a very good prediction
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.
Don't worry soon Amazon will be launching its own crypto exchange (which will also be used as a major lightning network hub) and the amazon platform will also start accepting various major cryptos as methods of payments. Long story short, Coinbase is gunna look like a tiny ant in comparison fairly soon.
I would be surprised if that is correct, but hey, on many levels I hope you are right. Customers win as competition increases!
Be surprised, ICO incoming (token to be used on the exchange similar to the Binance/Kucoin token) in a few months (late Spring or early Summer). Going to add a shit ton of legitimacy to the space, should be interesting.
Is that a good thing? I mean, what experience do Amazon have with financial markets? It doesn't fit with their core business in any way whatsoever.
It doesnt matter to Amazon, whatever is hot they will get into. Whatever they can make money on they will. Amazon got wholesale pharmacy licenses in multiple states to take money from CVS
Agreed. Amazon is big enough that they could dabble in whatever they want with little negative affect and huge upside. It would be surprising if they didn't jump in.
We are living in interesting times.
I'm truly happy to see the growth of crypto over the years so thumbs up to them
Coinbase fees and prices are a rip-off
Right now Bitcoin fees are killer so it might not be all Coinbase.
Although i don't really know much about coinbase but thanks for sharing
What can you do when this is one of the only operable exchanges with US... or certain territories. All i can say is id rather buy here then use Korean exchanges at the moment.
Money money money!
All for the money!
Death is certain.
We all gonna see its other in hell/heaven!
See you there!
Waiting forever to verify bank accounts in the UK. This stops people cashing out but it also removes confidence. I stopped using them after my experience. These exchanges give crypto a bad name.
superb photography nice post
Just wait until decentralized exchanges gain in popularity. No middleman, no trusting exchanges to hold your coins, and nobody for the IRS to subpoena.
I still favor Binance. Did you know keeping NEO in a wallet earns you free GAS crypto?
coinbase very bad wallet
I agree, for me it to weeks to complete a transaction....Cryptobanks where are you?
Wonder when the Gov will try and get customer info again?
awesome info dude
For anyone that has a coinbase account or is interested in coinbase, check out my article on how I built an Excel spreadsheet to track my coinbase investments here
They should cut the fees into half!
Just the fees themselves are crazy high as I’ve noticed
As competition eventually heats up, I would imagine fees across the board will come down. :)
They have definitely experienced incredible growth! Some of $10 in BTC they once gave away are now worth multiples that! haha
I wonder how many accounts they add on daily basis in real time? I would imagine that as price declines the number of new accounts follows.
I am sure that likely has something to do with it, though I would imagine many are getting in now that didn't want to buy a run away freight train before. I have had a couple people contact me in the last week asking for advice on how to set up an account and how to get in the markets. Not all retail buys at the top ;)
I hope people didn't go all-in at the top! That always makes me nervous!
I am glad people are asking about setting it up now that prices have come down a little bit!!
The growth is very much expected , not just for coinbase but for every crypto related enterprise. Any smart person knows that a crypto-enterprise is the way to go now. I am not surprised.
this is really lucky,
in with a very satisfactory result.
in 3 months got 66% higher increase.
success for you, and hopefully always like this.
I bet they are with their outrageous wallet to wallet transfer fees. If you're not using GDAX, then they're robbing you.
I don't mind the transfer fees to and from Coinbase, they have to make a profit somehow, but should I lose money just to transfer from my LTC wallet to my USD wallet? That seems a bit much.
Interesting to see how strongly and quickly Coinbase have grown. They really have helped bring people in to cryptos, regardless of the complaints people have about them.
I think that Decentralised Exchanges with FIAT gateways will be the real game changers, for example OmiseGo's planned DEX. I wonder how many users they will pull in when they launch!
When do they plan on launching?
They're a little up in the air when it comes to answering this, they never really say but sometime between Q2 and Q3 2018 from what I've read. Thanks for getting back to me!
There are a lot of chances that their growth will decrease as decwntralised exchanges develop. But who knows?
That´is incredible how much money they can do, especially because there is no competition that makes them lost new users, at least not competition that is very well known...
This year they will do even more and more, because the cryptos are growing at such a good pace that they will blow even more.
think well @jrcornel
With the crypto exchanges doing this well I can't see the governments banning them and shooting themselves in the foot.
Great post
Invest in customer service and lower fees.
Hope all this gets shared amongst everyone in the spirit of crypto ethos :-)
Coinbase has the best customer service! ..........................................NOT!
they are making soo much money off other cryptos, they should also add steem! Would make steem moon!
Yes it would. They are very selective which coins they add. I am not sure steem is on their radar, yet.
Coin base is dope
The government is creating a bottleneck for on/off ramps for crypto markets by making it very difficult for companies like Coinbase to be approved. This has given Coinbase monopoly status in the space.
Yep, very much this. Wonder if that will change in the future?
Last fall Novogratz mentioned in an interview on CNBC that even though he got into ETH in the single digits he wished he could have gotten a piece of an exchange like Coinbase or Bitconnect! Ha ha seriously! With their monopoly on fiat conversion Coinbase is profiting just like a Ponzi scheme. And with the US government too big fail to fail probably does not apply for crypto. I think the sideways market is good for the time being because it allows more crypto infrastructure to be created and gives a false comfort to the enemies that it can be controlled.
The best part about being an exchange is that they continue to make money in both the green AND red days.
The business is really trending more value had added and is appreciating @macdonaldfebi
Though not my #1 favorite, Coinbase works. They do need to add other crypto-coins.
If you don't have an account with Coinbase, you can use this referral and get started (and make $10 extra).
https://www.coinbase.com/join/59856012b9163b01377236c2
YEs it is cool... but when new users get in ?? I want see this . And since this site is so big, this page should announce new updates every week ...( when get New Users in ?? ) , but it will not do it.
Good post I really like that