The latest news about Coinbase, one of the most prestigious crypto exchanges in the world of blockchain, has been amazing and diverse in recent times. Indeed, there is good news in front of users: around 19 million verified users in 2022.
However, the news is not pleasant on the side of the stock exchange, which appeared to be down yesterday. On the legal side, Coinbase also faced more than a few bumps in the road, already recently sued by the US Supreme Court. But let’s proceed in order.
Coinbase beat the bear market: 19 million verified users during the year
As expected, crypto exchanges Coinbase seems not to understand the crisis, because it shows impressive user growth despite the very bearish cryptocurrency market.
Indeed, accordingly Finbolddata, 19 million new users has been verified for the platform between December 31, 2021 and September 30, 2022, an impressive number estimated to grow by approx. 21.35%.
Implicitly, this figure translates to at least two million monthly verified users for the exchange in 2022. At the end of Q1 2022, Coinbase’s user base was 98 million, 9 million more than the 89 million recorded in Q4 2021. In the second quarter . from 2022, 103 million and, in the third quarter of this year, as much as 108 million.
This sharp increase in the user base is reflected in Coinbase’s global market share: it was 3% on December 6, 2022 compared to 2.6% in the previous month. The number has increased since September. Incidentally, the lowest market share of Coinbase was in July of this year, 1.6%, and the highest in November 2021, at 4.2%when cryptocurrency market is at its peak.
What is very important is the fact, mentioned above, that the crypto market is in a bearish phase that has been going on for months, worse because collapsed from FTX. So, one wonders how Coinbase has managed to engage so many new users despite the critical time for it blockchain world.
Following Finbold’s lead, this steady growth in verified users is due to several factors, such as the trading platform. business model. Indeed, the exchange is advertised and equipped with innovative marketing, a strategy that includes factors such as referral programs and unique features, including the ability for users to send. cryptocurrencies are a gift.
Moreover, this trend has the potential to continue in the future, as the exchange has announced plans global expansion. Especially to Europe, while, on the other side of the Atlantic, regulators seem determined to regulate cryptocurrencies properly.
Coinbase stock in the news: crypto exchange on record
During yesterday’s trading day, Coinbase shares fell to all-time lows, as the fear of experts and users was evident. Specifically, shares of Coinbase Global (COIN -9.18%) as of 3 PM (EST) were down. almost 9% and keep falling.
The move is unusual for the S&P 500 and many cryptocurrencies, including Bitcoin, they are active all day today. However, fears are definitely starting to grip investors about Coinbase’s long-term prospects.
To make a point, we know, accordingly Morning star data, Coinbase bonds are currently trading for $0.52 per dollar. In other words, if the company can meet all its long-term debt obligations, the bond itself has a guaranteed guarantee.
However, bondholders would rather sell now than risk Coinbase’s insolvency later. Of course, among the fears for Coinbase is the recent collapse of the FTX exchange. Who founded, Sam Bankman-Friedarrested just over 24 hours ago.
In fact, investors fear that all cryptocurrency exchanges will eventually collapse in the same way, including Coinbase. In addition, common qualms include Coinbase’s relationship with USD coins (USDC -0.06%).
As we know, Coinbase partially has USD Coin with it Financial Internet Circlefactor that, in the third quarter alone, is generated over $100 million in interest income for the platform, generally from USD Coin.
The problem is that Circle just ended its plans to go public, which could indicate a rethinking of its business model and the consequences of its relationship with Coinbase.
In addition, the exchange competes BinanceThe largest cryptocurrency exchange in the world, it appears to be encouraging users to stop using USD Coin. Therefore, this may lead to a decrease in the use of this stablecoin, which affects the interest income for Coinbase.
Legal problems for Coinbase: Supreme Court subpoena
Another new issue for Coinbase this time straight from the US Supreme Court. Those who have sued the platform, in the past few weeks, two other lawsuits have been filed that require the court to intervene.
The first lawsuit, in particular, concerns the user seeking compensation $31,000. That for the exchange means having to pay back the lost amount after the user gave remote access to the Coinbase operator, who then turned out to be a scammer.
While the second lawsuit challenges Coinbase for insufficient information provided in the auction, and the resulting violation of the State of California. Consumer Code.
The information in the dispute concerns participants who have no obligation to buy or sell Dogecoin or other cryptocurrencies in order to participate in the lottery, causing uncertainty and causing some users to make mistakes.
