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Coinbase moves to increase monthly transactions and net profits

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@melbourneswest
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It wasn't too long ago that I posted about the profiteering in a gold rush is done by the person who sells the shovel rather than the person doing the digging and the Cryptocurrancy crazy is no different.

In the start we saw many fake ICOs and exit scams that provided a quick windfall and they were never to be seen again. This kind of behaviour is what builds a strong market cap for Bitcoin and Ethereum as they emerge as Blue Chip block chains with strong communities. Unfortunately trust in alt coins without as much community knowledge remain uncertain and grow much slower rate.

Coinbase is one of those shovel providers amongst the Gold rush and it has been a well designed and developed APP that provides people with an easy and safe way to enter that market.

It's coin listings have been rather modest with its main business being Bitcoin and Ethereum. However the 2021 market trading cap volume in alt coins is currently bigger now than what Bitcoin and Ethereum was in 2018.

Many alt coins have lower transaction fees and faster transfer times as the technology advances. You'll notice that Coinbase fees don't change based on the token that is being traded that is because coinbase acts as a middleman. It does have a pro version that has an exchange but the brunt of its user base utilises the main coinbase app.

Reported in CNBC coinbase reported a $US1.8Billion revenue in Q1 of the 2021 financial year. A huge windfall for the platform which it attributes to the surge in price of Bitcoin and Ethereum.

Coinbase reports that it has 56Million registered users on its site, that pretty impressive and as an Aussie that's x2 our national population. I'm wondering when Coinbase will exceed the GDP of our nation.

Coinbase current netincome is $US800 Million which is a massive growth from 12 months ago at the same time only being $US31 Million. This shows the sheer growth of the cryptoshphere and the large amounts of money now flowing into digital currencies.

This economic growth is a significant milestone for coinbase especially as it moves to go public. It currently holds a valuation of $68 Billion which is a modest assessment which is still greater than the many companies currently being publicly listed such as when Spotify went public.

Last month Coinbase reported 6.1 Million monthly transactions predominantly trading Bitcoin and Ethereum. At current it plans to exceed those monthly transactions and provide a larger profit margin increasing the companies stock price and share dividends to investors.

It's plan is simple, research new and emerging coins and list them on their platform. More options = more trades = more net profit for the platform and its share holders.

Coinbase has been rapidly listing tokens and they have probably listed more this year then over the past combined 3 years with another batch of coins being listed.

Enjin, ONG, NKN and the popular 1Inch have now been listed on its platform and only last week were another 4 tokens listed.

Increasing available tokens will no doubt further drive more users to the platform and drive up monthly transactions.

This latest rush of coin listings also moves to make coinbase a more lucrative investment option for those in the sector. It is already possible to invest in DEX through holding native tokens and staking them providing HODLrs APY in the form of more of the native currency or currency your staking in.

Coinbase goes public on April 14 for me that's tomorrow and for many others that's two days from now. Coinbase will be publicly traded on the Stock Exchange under the name COIN and its tipped to explode as many rush in to purchase the stock.

Unfortunately no new stocks will be provided and 115 Class A stocks as a direct listing and not releasing new stocks but allowing early investors to resell their Stokes to new investors.

This model will significantly see a bull run of coinbase stock, it will be interesting to see the uptake and where the price starts and ends during the first day of trading.

What are your thoughts, is coinbase about to go on a bull run?

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