We will see a rise in income for most Bitcoin based companies, when the price peak like that. A high price attract a lot of
media attention and that leads to more adoption. The problem is, most of these companies cannot handle the peak traffic
during these times and they lose most of that income. {The KYC/AML regulations also makes this more difficult for these
regulated exchanges, because it takes time to verify the new users}
Topic: Coinbase made 43 percent of its 2017 revenue in December alone (Read 119 times)
February 28, 2018, 09:25:17 AM
This is also matching the data about Bitcoin transactions, which reached an all time high in the same period. Since then the price crashed down, we can assume that most of the ATH Bitcoin buyers have been Bitcoin latecomers, who as their first experience with Bitcoin has been welcomed in the crypto world with a rapid loss of 50% of their capital. Which for all of them who has later sold, is now a permanent loss.
February 28, 2018, 09:17:46 AM
https://www.theverge.com/2018/2/27/17058306/coinbase-bitcoin-cryptocurrency-revenue
(...)
Coinbase will be crossing it's fingers that bitcoin's price surges back up to $20,000 this year.
(...)
Coinbase will be crossing it's fingers that bitcoin's price surges back up to $20,000 this year.
Aren't we all crossing our fingers?
I think the price and adoption and number of people exchanging their crypto to fiat and vice versa is so tightly interlinked together that it is no wonder some large percent of profit was made in December. I admit 43% is surprisingly high, though.
February 28, 2018, 09:15:16 AM
No wonders with that because there were aroumd 300K unconfirmed transactions in the memepool at December 2017 and most of the people are using coinbase as their bitcoin wallet so they earned more at the time but not all the fee go to the coinbase company they have to pay the miner more if there is high traffic.
February 28, 2018, 09:09:27 AM
if this is true, it is only because last year we had the biggest adoption explosions of all time. it happened during three phases in my opinion which also meant three phases of price rise.
1. the big news about Japan and mass adoption of bitcoin over there.
2. the big news about scaling solution around August.
3. the big news about US and futures market over there.
all of these led to a surge of new users all around the world, including US starting to buy bitcoin and that is a lot of commissions going in their pockets.
1. the big news about Japan and mass adoption of bitcoin over there.
2. the big news about scaling solution around August.
3. the big news about US and futures market over there.
all of these led to a surge of new users all around the world, including US starting to buy bitcoin and that is a lot of commissions going in their pockets.
February 28, 2018, 08:48:02 AM
Hi,
No wonder that bitcoin-related businesses were happy to see the figures in December 17!
However, if I was working in one of those companies, I guess that instead of congratulating people for December, I would try to improve the model so that it remains profitable in January and following months...
Because otherwise, such companies may struggle to make their way to December 18!
No wonder that bitcoin-related businesses were happy to see the figures in December 17!
However, if I was working in one of those companies, I guess that instead of congratulating people for December, I would try to improve the model so that it remains profitable in January and following months...
Because otherwise, such companies may struggle to make their way to December 18!
February 28, 2018, 08:29:01 AM
Not surprised. I think bitcoin's media attention and popularity was at it's peak on December; having frequent news about bitcoin and it's ATH price. Probably caused a lot of people to register on Coinbase and buy some crypto.
Especially as the other exchanges were overwhelmed and closed to new members, and some exchanges like Kraken were buckling under the strain and producing 520 errors, till they managed to finally fix things in the new year.
You have to give Coinbase credit - they were the only ones prepared for the surge of new people.
Oh definitely. Props to them for sure. It's almost like they had insider information with the media. oh wait.
February 28, 2018, 08:24:54 AM
Not surprised. I think bitcoin's media attention and popularity was at it's peak on December; having frequent news about bitcoin and it's ATH price. Probably caused a lot of people to register on Coinbase and buy some crypto.
Especially as the other exchanges were overwhelmed and closed to new members, and some exchanges like Kraken were buckling under the strain and producing 520 errors, till they managed to finally fix things in the new year.
You have to give Coinbase credit - they were the only ones prepared for the surge of new people.
February 28, 2018, 08:18:37 AM
Not surprised. I think bitcoin's media attention and popularity was at it's peak on December; having frequent news about bitcoin and it's ATH price. Probably caused a lot of people to register on Coinbase and buy some crypto.
with higher price, higher the revenue, it is that simple...
in december the hype was really big, will see results for january/february
I don't think it's due to the higher price, probably more of higher volume. I think their percentage cuts on their buys and sells are constant, so they'll be making the same amount of money whether bitcoin is as low as $1,000 or as high as $20,000. All depending on volume/amount of trades. in december the hype was really big, will see results for january/february
February 28, 2018, 08:13:59 AM
with higher price, higher the revenue, it is that simple...
in december the hype was really big, will see results for january/february
in december the hype was really big, will see results for january/february
Of course, it only makes sense that they got "rewarded" like everyone does in the month of December of last year. But at the start of this year, its gonna be tough for everyone.
Over 1 billion revenue in 2017 alone speaks volume about how crypto suddenly boom during that year. And that's one trading platform alone. I'm guessing that around 20-50 billions in revenue was pocketed by the top 10 trading exchanges in 2017.
February 28, 2018, 07:58:39 AM
https://www.theverge.com/2018/2/27/17058306/coinbase-bitcoin-cryptocurrency-revenue
Coinbase will be crossing it's fingers that bitcoin's price surges back up to $20,000 this year.
Quote
The digital currency exchange and wallet service Coinbase, founded in 2012 and backed by Silicon Valley investors, recently told shareholders that it booked $1 billion in revenue in 2017. A new independent analysis says about 43 percent of that came in December when the price of bitcoin was surging, and the company’s revenue has plummeted since then.
“By no stretch of the imagination are they continuing that same trajectory,” says Jonathan Meiri, CEO of Superfly Insights, which analyzes data about consumer behavior. “There is a rise up in December. It’s not like it stayed on this plateau into January, February. It came crashing down.”
Superfly Insights’ Coinbase analysis is based on anonymized and aggregated data from user email receipts from about 25,000 users through 2017 and the first six weeks of 2018, Meiri says.
The 43 percent figure lines up with what investors told Recode in January: Coinbase was expected to do about $600 million in revenue over the course of the year, but “bitcoin’s run between Thanksgiving and Christmas boosted the company’s 2017 revenue to over $1 billion.”
“By no stretch of the imagination are they continuing that same trajectory,” says Jonathan Meiri, CEO of Superfly Insights, which analyzes data about consumer behavior. “There is a rise up in December. It’s not like it stayed on this plateau into January, February. It came crashing down.”
Superfly Insights’ Coinbase analysis is based on anonymized and aggregated data from user email receipts from about 25,000 users through 2017 and the first six weeks of 2018, Meiri says.
The 43 percent figure lines up with what investors told Recode in January: Coinbase was expected to do about $600 million in revenue over the course of the year, but “bitcoin’s run between Thanksgiving and Christmas boosted the company’s 2017 revenue to over $1 billion.”
Coinbase will be crossing it's fingers that bitcoin's price surges back up to $20,000 this year.
Jump to: