The investors and founders of Coinbase have made their investment at the perfect moment. This is mainly because the timing of the IPO (initial public offering) that took place this week was ideal.
Bitcoin price has been at its all-time high as it broke through the $60,000 mark. 8 days back Coinbase had made the public announcement that the 1st quarter revenue during 2021 had increased threefold by touching $1.8 billion. In addition, their total profit touched an approximate $800 million.
Coinbase On Track Of Success
During the first trading day on 14th April, Wednesday, the profits nearly doubled and later came down to a gain of 30%. Coinbase concluded the day with an $86 billion market value.
Brian Armstrong, the CEO, saw an increase in his net worth that reached a massive $11.8 billion. Moreover, Fred Ehrsam, co-founder and member of the board, also had an increased net worth touching $3.8 billion while Surojit Chatterjee, head product officer, has a net worth of $660 million.
The most important competitive benefit for Coinbase is the intense trading marketplace and their brand, just like most of the other exchanges and brokerages for digital assets in the US. This indicates more attractive prices for selling and buying as the number of customers also increases. At present, it has 56 million users that are verified.
Binance had also launched its US arm back in 2019 September and reached a record trading volume of $1.3 billion each day as compared to the $5 billion of Coinbase. Cryptocurrency ETFs (exchange-traded funds) are also inching closer to getting approved in America for the 1st time. This will provide the wealth managers and retail investors with BTC-related exposure.
The increased competition for Coinbase also suggests cutting down the high transaction fees.
