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   428

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.
 

Coinbase to Issue New Statement

As reported, company says it was wrong about SEC approval of acquisitions of Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC
18 July 2018   153

Vice President of Communications of Coinbase Rachel Horwitz denied the information that the company received approval from the Securities and Exchange Commission of the United States for a deal to buy brokerage companies. This is reported by Bloomberg.

It is not correct to say that the SEC and FINRA approved Coinbase’s purchase of Keystone because SEC was not involved in the approval process. The SEC’s approval is not required for the change of control application. Coinbase has discussed aspects of its proposed operations, including the acquisition of the Keystone Entity, on an informal basis with several members of SEC staff.
 

Rachel Horwitz

Vice President of Communications, Coinbase

On Monday, a spokesman for Coinbase said that the company received permission from the SEC and the Agency for Regulation of Financial Institutions (FINRA) to purchase Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC.

However, despite the refutation from Rachel Horwitz, Coinbase still intends to obtain a license to carry out brokerage activities.