Coinbase Made Almost Half of its 2017 Revenue in December Alone

The exchange recently reported to investors that it made $1 Billion in revenue through 2017  
28 February 2018   623

According to an independent assessment, 43% of revenue was in December alone. Coinbase was one of the first interfaces to make Bitcoin accessible to the masses using credit cards and bank exchanges.

The exchange expected a 600 million profit for 2017 but the bitcoin run in the final weeks of the year nearly doubled that estimate. According to the New York Times, Coinbase was receiving eight times as much traffic in December as it was in June. It makes money from transaction fees. Due to this fact during the high rate of trading that went on from about Thanksgiving through to New Years, the exchange would have seen much higher profits.

However, it is not possible to repeat such success in 2018 unless there is another surge in cryptocurrency trading. Moreover, because of increasing Competition Coinbase may not see the same profits.

Coinbase is going to generate profits with a new merchant platform Coinbase Commerce which will enable vendors to accept cryptocurrencies. It will generate profit from participating merchants while encouraging the growth of cryptocurrency use, garnering fees from those transactions as well.
 

Bakkt to be Launched in December

It is also reported that Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure
19 October 2018   39

The expected launch of the Bakkt will take place on December 12 of this year. It is reported by The Block, citing informed sources.

Also, the material states that the investment bank Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure. At the same time, the bank is considering the possibility of trading futures on a new platform.

In a recent Fortune interview with Bakkt, Kelly Lofler said that the cryptocurrency market is on the verge of a revolution comparable in size to the one that occurred on the energy market in the early 2000s.

Greater institutional participation in the digital asset markets requires secure and regulated custody solutions. We are impressed by BitGo’s product, unique services, and the management team. We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure.
 

Rana Yared

Managing director, Goldman Sachs’ Principal Strategic Investments group

Bakkt is a cryptocurrency unit of the Intercontinental Exchange (ICE), which is the operator of the New York Stock Exchange. Giants such as Microsoft and Starbucks are taking part in creating of the new project, which is positioned as an “ecosystem for digital assets”.

The new platform will offer deliverable bitcoin futures to the market (unlike the settlement contracts for CBOE and CME, these are based on the underlying asset). The platform will support multiple fiat currencies.