Coinbase Shoots a Whopping Billion Dollar Revenue in 2017
Owing to the craze of the crypto mania last year in 2017, the largest cryptocurrency exchange in United States ‘Coinbase’ has reportedly earned a whopping $1 billion in revenue last year in 2017. As reported by Recode, the company has initial set a target for $600 million. However, due to a massive influx of investors registering to its exchanges in the second-half of 2017, the company has comfortable managed to beat its estimated earnings by 66%. This huge surge majorly came during “bitcoin’s run between Thanksgiving and Christmas which boosted the company’s 2017 revenue.”
In the last two months of 2017, and especially after the announcement of Bitcoin futures contracts by the CME group, there was a massive bull run witnessed in the overall cryptocurrency market. During this time period, Coinbase reportedly made 100,000 new user sign-ups every 24 hours. It is also being said that during the entire year of 2017, Coinbase made over 13 million new users registrations.
Coinbase operates fiat trading in 39 countries with crypto-only branches in many more. Coinbase was founded in 2012. In addition to processing Bitcoin payments, the company also provides wallet services for investors and holders of the cryptocurrencies. The company earns its revenue from trades made on its GDAX exchange as well charging fees on fiat-to-crypto and vice-versa conversions through its Buy/Sell feature.
Several big investors and venture capital firms have been closely monitoring the success story of Coinbase, as it unfolds. Recode reported that the shares of the company are being sought out on a number of fronts. However, shareholders of Coinbase are strictly prohibited from selling its shares outside to any third party, as doing so would result in a breach of policy.
The company is a statement to Recode, said: “As a private company, Coinbase does not allow trading of stock on secondary markets for a variety of reasons, including the fact that there is not full and equal information available to the market. We will take appropriate action if we find people have sold Coinbase shares in violation of our agreements not to do so."
Last year in August 2017, the company raised $100 million in series D funding that is aimed to increase its customer service and engineering team along with operating a new DGAX office in New York. Recode reported that investors who have missed out on the opportunity are trying their very best by asking shareholders to part ways with those lucrative shares.