Coinbase reported significant user growth before IPO

bryant.coleman

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Quote from: jaysabi on April 17, 2021, 05:09:10 PM

If you bought bitcoin and aren't a day trader and are just content to hold, you wouldn't have a reason to be a monthly active user because there's no reason to log into your Coinbase account. I expect there is a good number of people who haven't bought more bitcoin in years at this point and are just content to let what they have sit in their Coinbase account.

You are right, but how many of the users would keep their coins in an exchange like Coinbase? Every now and then we are hearing about exchange hacks and I myself has lost good number of coins when exchanges such as Wex.nz and Cryptopia went down in the past. And if they are keeping their coins in personal wallets, then there is no guarantee that they will use Coinbase to sell those coins. I would also say that the ratio of active users to the total number of registered users sounds low.

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Quote from: condoras on April 17, 2021, 06:57:57 AM

I believe that all the exchanges want to get into more "fiat" roads. Coinbase show from the start that will move to specific areas regarding markets and after their NASDAQ entry people just follow. They are the first after all. Not to mention that Elon Musk bought "his" BTC from them and this is pretty much enough advertisement as the hype of almost all the major coins.
At least Coinbase gave ~170.000 shares to its staff/ employees... Grin

I also believe that going public made it look more professional and more importantly more legal. Believe or not there are still people who think that bitcoin is a gray area in law, it is not illegal but it is not legal neither, it is just not in the law at all. We know the reality, it is in the law, it is legal, it is regulated, everything is perfect, a company can't get that big without doing something legal, so we all knew the real answer, but there were tons of people who didn't know if it was legal or not.

With an IPO you are basically telling the whole world, government and it is financial branches all checked from bottom to top every single data there is financial or not, and couldn't find anything illegal, so we are going to be open to public now, and saying that made a lot of people feel more comfortable using it. That is at least what I believe some parts of this was.

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Quote from: Tytanowy Janusz on April 17, 2021, 11:57:09 AM

All insider and early investors, including coinbase CEO - ARMSTRONG BRIAN went all out. They dumped their shares in first few days of trading... Damn this looks super pessimistic not only for COIN investors but also for whole crypto industry. If our first company that went out public do it only to run away with money what testimony this gives about the entire industry.

Bad news, but not unexpected although many are surprised that such thing happen. Coinbase is a profit-making company, and cryptocurrencies are what make that profit - now they've taken another perfectly legal opportunity to make even more profit. - but I don't see the stock price falling, it's still above $340. It may be too early to say that this will end badly, but one thing is for sure - this has not proved to be big news that will push the price up - in the short term yes, but a drop from $65k to $52k (and it is not over yet), is not something it's nice to see (at least for inexperienced investors).

jaysabi

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Quote from: Sithara007 on April 16, 2021, 11:06:03 PM

Coinbase claims to have an userbase of 56 million verified users. So first of all, it is really surprising to know that less than one-tenth of them can be described as "monthly active users". Why should anyone go through the rigorous KYC process, if they don't want to trade regularly (at least once in a month)? One reason may be that Coinbase is quite old (in terms of crypto). It was founded in 2012, and a lot of the users from those days may no longer be active now. I am sure that the ratio of active users to registered users will be much better for Binance.

If you bought bitcoin and aren't a day trader and are just content to hold, you wouldn't have a reason to be a monthly active user because there's no reason to log into your Coinbase account. I expect there is a good number of people who haven't bought more bitcoin in years at this point and are just content to let what they have sit in their Coinbase account.

arallmuus

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Quote from: Tytanowy Janusz on April 17, 2021, 11:57:09 AM

Bad news for everyone who belived in COIN:

https://www.nasdaq.com/market-activity/stocks/coin/insider-activity

All insider and early investors, including coinbase CEO - ARMSTRONG BRIAN went all out. They dumped their shares in first few days of trading... Damn this looks super pessimistic not only for COIN investors but also for whole crypto industry.

Well considering that this has always been the crypto cycle so far, I dont feel surprised at all. Most of the ICO in crypto ended up being dumped after it was listed on exchange . Most of the COIN's early investor are probably crypto enthusiast as well so no doubt that they probably dumped those shares after the price took off

Quote from: The Sceptical Chymist on April 17, 2021, 12:21:45 PM

Quote from: fiulpro on April 17, 2021, 12:09:49 PM

I do think the major factors contributing to this growth are :
ATH

All of those are legitimate factors, and I'd add that there looks to be a lot of new individual investors getting into the crypto market. Most of them I'd bet are pure speculators looking for short-term profits, but either way I wouldn't discount their contribution to both Coinbase's growth and to the surge in crypto prices.

Coinbase is just one of the gateway into crypto market like many other exchange but most of the new users probably lives in US otherwise it would be absurd to register and use coinbase ( or some new user might feel that it is safer to use coinbase because the stocks are listed in Nasdaq )

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Quote from: bittraffic on April 15, 2021, 07:40:14 AM

I also like the idea that it's not just the Chinese exchanges that are dominating the market such as Binance.

Since when is Binance a Chinese exchange? As far as I know Binance had a Chinese founder but is now officially based in Malta or Cyprus (Europe), or did I miss something?

Tytanowy Janusz

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Quote from: Anonylz on April 17, 2021, 12:17:33 PM

And here I am thinking I have missed out on a good opportunity to own a share in a reputable exchange, that is not certainly a good way to start in the stock market, they really downplay the investors who trust in the company and the team, why so pessimist on the first few days, that means they have no confidence their shares will survive the market for long, glad I didn't make a move eventually.

It was never a good oportunity at this price. Everything above 100$ is way to much for coinbase. We already discussed it here. But now... even 50$ may be to much. damn I feel so bad that nasdaq is closed for weekends. I'm used to crypto 24/7/365. Can't wait to see opening price.

The Sceptical Chymist

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Quote from: fiulpro on April 17, 2021, 12:09:49 PM

I do think the major factors contributing to this growth are :
ATH
Companies now investing in bitcoins, like major ones.
Government finally trying to establish a bridge between them
Pandemic not getting knocked out anytime soon , just look at the situation in India.

All of those are legitimate factors, and I'd add that there looks to be a lot of new individual investors getting into the crypto market. Most of them I'd bet are pure speculators looking for short-term profits, but either way I wouldn't discount their contribution to both Coinbase's growth and to the surge in crypto prices.

Anonylz

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Quote from: Tytanowy Janusz on April 17, 2021, 11:57:09 AM

Bad news for everyone who belived in COIN:

https://www.nasdaq.com/market-activity/stocks/coin/insider-activity

All insider and early investors, including coinbase CEO - ARMSTRONG BRIAN went all out. They dumped their shares in first few days of trading... Damn this looks super pessimistic not only for COIN investors but also for whole crypto industry. If our first company that went out public do it only to run away with money what testimony this gives about the entire industry.

And here I am thinking I have missed out on a good opportunity to own a share in a reputable exchange, that is not certainly a good way to start in the stock market, they really downplay the investors who trust in the company and the team, why so pessimist on the first few days, that means they have no confidence their shares will survive the market for long, glad I didn't make a move eventually.

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Quote from: Sithara007 on April 16, 2021, 11:06:03 PM

Coinbase claims to have an userbase of 56 million verified users. So first of all, it is really surprising to know that less than one-tenth of them can be described as "monthly active users". Why should anyone go through the rigorous KYC process, if they don't want to trade regularly (at least once in a month)? One reason may be that Coinbase is quite old (in terms of crypto). It was founded in 2012, and a lot of the users from those days may no longer be active now. I am sure that the ratio of active users to registered users will be much better for Binance.

I also have more than one account there with one verified account. I do not use any of them now because I get better service and security from other service providers. A centralized wallet like coinbase can freeze its user's accounts for no reason. Many people just do not like this kind of threat or limitation that's why many do not use coinbase anymore.

fiulpro

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I do think the major factors contributing to this growth are :
ATH
Companies now investing in bitcoins, like major ones.
Government finally trying to establish a bridge between them
Pandemic not getting knocked out anytime soon , just look at the situation in India.

Now there are even more things that have genuinely caused all this interest suddenly in bitcoins which have gained a lot of followers overtime and the companies like Coinbase is doing everyone a favour by expanding their business. I do hope they for sure try and improve the loose ends and then only move forward since the more they play on the bigger ground the more they will have to loose.

Tytanowy Janusz

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Bad news for everyone who belived in COIN:

https://www.nasdaq.com/market-activity/stocks/coin/insider-activity

All insider and early investors, including coinbase CEO - ARMSTRONG BRIAN went all out. They dumped their shares in first few days of trading... Damn this looks super pessimistic not only for COIN investors but also for whole crypto industry. If our first company that went out public do it only to run away with money what testimony this gives about the entire industry.

Kittygalore

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They did go public so it is understandable that they have an increase in users. I am sure that almost any company that goes public is going to attract more people, it is a strange thing if that wasn't the case because that spells that the company isn't going to grow anytime soon.

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Quote from: Kakmakr on April 17, 2021, 06:43:55 AM

Let's just hope Coinbase do not pull the same shit like "Circle" did back in the day, when they kicked the Bitcoin users in the teeth and they turned into a Fiat Bank. Roll Eyes

It is actually natural for an Exchange to see a huge increase in the "signups" before the IPO, because most of those people were riding on the hype wagon and expecting huge profits when it went through. I guess a lot of them did make some profits, because the Bitcoin price and some other Alt coins got a nice boost. Wink

That's true but Circle didn't buy Poloniex as well?
I believe that all the exchanges want to get into more "fiat" roads. Coinbase show from the start that will move to specific areas regarding markets and after their NASDAQ entry people just follow. They are the first after all. Not to mention that Elon Musk bought "his" BTC from them and this is pretty much enough advertisement as the hype of almost all the major coins.
At least Coinbase gave ~170.000 shares to its staff/ employees... Grin

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Let's just hope Coinbase do not pull the same shit like "Circle" did back in the day, when they kicked the Bitcoin users in the teeth and they turned into a Fiat Bank. Roll Eyes

It is actually natural for an Exchange to see a huge increase in the "signups" before the IPO, because most of those people were riding on the hype wagon and expecting huge profits when it went through. I guess a lot of them did make some profits, because the Bitcoin price and some other Alt coins got a nice boost. Wink

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Quote from: bitmover on April 16, 2021, 07:24:12 PM

Yes , coinbase is mostly in us while binance is global
Binance supports 46 fiat currencies while coinbase only 3 (USD, EUR, GBP

Perhaps we can conclude that Coinbase is still targeting the markets that have the highest standard of living, and the US, UK and EU definitely fit into that strategy. I think most Coinbase users also come from these parts of the world, while Binance is trying to position itself as a global crypto exchange available to anyone around the world.

However, Binance still does not have a strong enough reputation, and it is certainly not helped by the fact that they are still perceived as a Chinese company - although they have long since moved away from the influence of Chinese authorities and become a global player.

so98nn

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That statement makes me smile! Not the title, but this one: Coinbase made 86% revenue from their fees alone! Guess the total revenue of Coinbase in 2020? It's $1140 million. So crypto users have paid that much in fees alone and I believe crypto market in it's own way is big surprise. Just imagine how much combined fees are being paid on all the exchangers around the globe. So, that much bitcoin or alts are getting stored somewhere or sold etc.

With that kinda money coinbase can do and did miracles with their IPO's, UI, Company, the crew and what not! Their economy will soon grow even bigger considering the current inflow of money on their wallet. Let us not miss the opportunity to invest this time Cheesy

Kong Hey Pakboy

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Quote from: poodle63 on April 16, 2021, 11:18:34 PM

I personally think that it's the rapid publication of coinbase regarding the IPO that attracts many users into their platform or even increase the transaction more frequently though it's undeniable that bitcoin bullrun also contributes to that since most of people I knew who trying to get into crypto but also lacking of knowledge always trying to start out by using coinbase.
But it's indeed true that if coinbase could expands and compete with Binance it will be very good, the crypto market in my opinion too dominated by binance to the point everything that related to binance whether partnership or something else getting overhyped.

That's what I thought so, the advertising of their IPO made people fllock to them and want to get in while the going gets good. Hopefully half of this people are going to be a mainstay in Coinbase because they are going to contribute to the growth of their stock. If Binance were to launch their IPo and go public, I would bet that they are going to topple this pioneer crypto company.

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I personally think that it's the rapid publication of coinbase regarding the IPO that attracts many users into their platform or even increase the transaction more frequently though it's undeniable that bitcoin bullrun also contributes to that since most of people I knew who trying to get into crypto but also lacking of knowledge always trying to start out by using coinbase.
But it's indeed true that if coinbase could expands and compete with Binance it will be very good, the crypto market in my opinion too dominated by binance to the point everything that related to binance whether partnership or something else getting overhyped.

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Coinbase claims to have an userbase of 56 million verified users. So first of all, it is really surprising to know that less than one-tenth of them can be described as "monthly active users". Why should anyone go through the rigorous KYC process, if they don't want to trade regularly (at least once in a month)? One reason may be that Coinbase is quite old (in terms of crypto). It was founded in 2012, and a lot of the users from those days may no longer be active now. I am sure that the ratio of active users to registered users will be much better for Binance.

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Quote from: pugman on April 16, 2021, 05:50:09 PM

Personally, I want to see where this IPO takes Coinbase. Like you said, binance's expansion is fuckin crazy and they are trying to create a monopoly. Binance aquiring CMC and various other companies in the crypto-world is just the tip of the iceberg. I want coinbase to take a fully-global route. Cause right now, I believe binance still is available in more countries in comparision to coinbase, if I am not wrong? Correct me?

Yes , coinbase is mostly in us while binance is global
You can check here that binance has much more fiat pairs than coinbase

https://coinmarketcap.com/rankings/exchanges

Binance supports 46 fiat currencies while coinbase only 3 (USD, EUR, GBP

pugman

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I actually saw their founders post some info on twitter, reading it made me smile hard. Its just one of those things you read and go like damn I saw this grow in front of my eyes(I still hate coinbase kind of)

Read both of these threads: https://twitter.com/FEhrsam/status/1382242839296299011

https://twitter.com/brian_armstrong/status/1382428172273131522

Coinbase, everything it stands for now, was made by two nerds who met on the internet. Holy fuckin shit.

Personally, I want to see where this IPO takes Coinbase. Like you said, binance's expansion is fuckin crazy and they are trying to create a monopoly. Binance aquiring CMC and various other companies in the crypto-world is just the tip of the iceberg. I want coinbase to take a fully-global route. Cause right now, I believe binance still is available in more countries in comparision to coinbase, if I am not wrong? Correct me?

Husires

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The best thing that this IPO will bring is more transparency and introducing people to cryptocurrency services, as it has become something that has a market position such as Apple, Google and other companies listed on Nasdaq.
Binance is dominating altcoin market cap and it will be a knockout blow for 70% of the altcoins.
It is centralized and trying to expand and it does not dominate the bitcoin market.
Transparency is required for a lot of centralized platforms and we need strong decentralized one.

The Cryptovator

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I have been using Coinbase for a long time but used only wallet service. I haven't tried coinbase pro since the coinbase prevents me to trade (exchange) inside coinbase. I am still not sure if coinbase pro allows users from my country nor I had taken a deep look. To be honest, centralized is just centralized doesn't matter whatever exchange you choose. Binance rolling the crypto exchange industry and they have a good reputation at all. Every exchange has a few weaknesses like a support system. But honestly, I like to see a strong competitor of Binance. So there will be a competition of service as well who could give the best. Anyway, I will take a deep look into coinbase pro if it's possible to trade there and allow from my jurisdiction.

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At a time when crypto is going viral, everyone wants their share of the pie, so I'm not at all surprised that the number of users has increased in such large numbers - and when we add that Coinbase and Binance are the most famous crypto exchanges, it is logical that most new users end up on these platforms.

For me personally, it is not too important where someone will buy their crypto, but it is much more important that they understand what they should do after that, which means that they should not leave that same crypto to someone else for safekeeping. The idea of cryptocurrencies actually takes us back to the beginning of the problem - crypto exchange controls your coins and they are controlled by the government - which means that your funds can be frozen at any time and, in the worst case, confiscated.

Tytanowy Janusz

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I think this grow in user base and trading volume it rather caused by the fact that durign Q1 bitcoin pumped from 29k to 61k.

From today's binanace quarterly burn report:

"In Q1 2021, Binance recorded growth of 260% and 346% in traded volume and users respectively,"
https://www.binance.com/en/blog/421499824684901944/15th-BNB-Burn-%7C-Quarterly-Highlights-and-Insights-from-CZ

So despite the fact that coinbase is growing very fast it does not mean that it is growing against binance. Binance might in fact grow even faster.

And binance is also starting to dominate etherum (not yet but those number are prmising):

"1. BSC reached as much as 4.9 million daily transactions (as of April Cool

. That’s 300% more than Ethereum’s all-time high in daily transactions.
2. The total unique address count on BSC has reached 64 million in just eight months. For comparison, Ethereum is at 148 million.
3. Currently, 450+ projects have been built on top of Binance Smart Chain.
4. BSC played a significant role in growing the number of active dApp wallets (+639% in Q1 across all blockchain platforms), bringing in an average of 105,000 daily active wallets, compared to 458,000 daily active wallets for the entire industry."
https://www.binance.com/en/blog/421499824684901944/15th-BNB-Burn-%7C-Quarterly-Highlights-and-Insights-from-CZ

bittraffic

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$223B trading volume this Q1 alone is really big.
I also like the idea that it's not just the Chinese exchanges that are dominating the market such as Binance. A bigger contender like Coinbase will put some balance which will also introduce the crypto market for newcomers to come in. Maybe it's not so impossible after all we could see news and not just cities like Miami becoming a hub for crypto users.

tyz

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I also looked into Coinbase a bit more yesterday, as I briefly thought about buying the stock, but refrained for now. In fact, Coinbase made huge gains in new users in the fourth quarter of 2020 and first quarter of 2021, as well as in revenue and profit. This should not surprise anyone after the enormous pump in the crypto sector in recent months. Many newcomers register first and foremost with simple exchanges like Coinbase. Coinbase benefits from this, the only question will be whether these growth rates can be maintained. In addition, Coinbase currently still has very good earnings on transactions. With increasing competition, this will also decrease further. I doubt that the current market valuation of around $100 billion can be maintained.

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Quote

Coinbase Experiences Brisk User Growth Ahead of IPO

.

The Briefing

Coinbase is the largest cryptocurrency exchange in the U.S.
The company added 3.3 million transacting users in Q1 2021 – a 117% increase
$133 billion in assets were added to the platform, totalling $223 billion in Q1 2021

...
Industry experts believe this strong start to the year is a good indicator of the company’s future profit potential.

For instance, the investment bank DA Davidson raised Coinbase’s share price target from $195 to $440 after seeing the company’s Q1 results.

Source: https://www.visualcapitalist.com/coinbase-experiences-brisk-user-growth-ahead-of-ipo/

Things are going well for Coinbase. Personally, I like to see Coinbase growing, because Binance is very agressively expanding and dominating cryptocurrency markets

Binance has already 50% of total exchange volume. This is crazy, and I am happy Coinbase is expanding, and I hope others do the same.

Exchange centralization is not good for anyone, except for binance.

I hope this IPO will bring more transparency and better services (like customer support) to coinbase, and also allowing it to expand to new countries to face binance domination.

Topic: Coinbase reported significant user growth before IPO (Read 165 times)