According to Recode, Coinbase, the largest US cryptocurrency exchanges, made over one billion US dollars in revenue last year, surpassing the estimated goal of 600 million dollars by 66%. Investors are showing a big interest in Coinbase, but the company remains private for the time being.
The success of Coinbase did not pass unnoticed by the investment world and many investors would like to own its stocks. However, the shareholders were told not to sell stocks to anyone who is not a member, because it would violate the company’s policy. Recode communicated the statement from Coinbase regarding this matter: “As a private company, Coinbase does not allow the trading of its stocks on secondary markets for several reasons, including the fact that there is no complete information available to the participants on those markets. We will undertake necessary measures if we discover that people sold our stocks and violated the agreement with the company to refrain from doing so.”
After the sharp rise of the price of bitcoin in November last year, Coinbase was flooded with new users who wanted to open an account on the cryptocurrency exchange. When the bitcoin futures were announced by CME in November, Coinbase got 100,000 new users in 24 hours.
The revenue comes from the fees charged for the conversion of fiat money into cryptocurrencies and the trading on the GDAX exchange.
In August last year, Coinbase acquired 100 million dollars during the round D of financing. The goal of that round was to expand the teams in charge for technical matters and customer service, as well as to open a new GDAX office in New York. The investors who missed the last round of fundraising are doing everything to persuade the shareholders to sell their stocks, according to Recode.
Last December, Coinbase had more than 13 million users, more than the mainstream brokerage firm Charles Schwab.
