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LeoGlossary: Coinbase

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@leoglossary•a year ago
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A cryptocurrency exchange based in the United States that was founded by Brian Armstrong with Fred Ehrsam in 2012. The company is now traded on NASDAQ under the symbol COIN. Coinbase is the largest cryptocurrency exchange in the United States by volume. The website claims to have over 98 million users.

Initial Public Offering

On April 14, 2021, Coinbase became a public company on the NASDAQ exchange via a direct stock listing. Before the listing, Nasdaq set a reference price of $250 a share, giving the company an estimated value of $47 billion. At the end of its first day of trading, it closed at $328.28 per share

Stock

The company trades under the symbol COIN on NASDAQ. As of September 30, 2022, there are 224 million shares outstanding. Ark Invest, run by Cathie Wood, is one of the largest shareholders of COIN.

Regulatory Failure

In January 2023, the company reached a settlement with the New York State Department on Financial Services regarding its lack of compliance in background checks. The agreement stipulates a $50 million fine along with a $50 million to ramp up its compliance program. At that time, the company's website claimed to have 108 million users in 100 countries. It also said it had $101 billion in assets and traded $159 billion during the last quarter. With the failure of the likes of FTX, increase regulation is on its way. This is also pushing the regulators to take a stronger stance.

Acquisition of One River Digital Asset Management

On March 3, 2023, Coinbase announced that it agreed to purchase One River Digital Asset Management, a move to expand beyond its retail trading business. The move would allow Coinbase to act as a custodian of digital assets for financial institutions. After the FTX collapse, regulators are looking closely at how corporations handle people's cryptocurrency.

Wall Street firms are interested in the industry but the lack of infrastructure (along with regulation) is keeping them at bay. Coinbase made the move in an attempt to help bring more institutional capital into the space.

Cryptocurrencies Supported

  • Bitcoin - BTC
  • Ethereum - ETH
  • Tether - USDT
  • USD Coin - USDC
  • Binance USD - BUSD
  • Dogecoin - DOGE
  • Cardano - ADA
  • Polygon - MATIC
  • DAI - DAI
  • Litecoin - LTC
  • Polkadot - DOT
  • Solana - SOL
  • Shiba Inu - SHIB
  • Uniswap - UNI
  • Avalanche - WAX
  • Wrapped Bitcoin - WBTC

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