Coinbase’s Download Dilemma
In what can only be described as a download catastrophe, Coinbase, the San Francisco-based cryptocurrency exchange, has hit its lowest spot on the download charts for finance apps in the U.S. It recently plummeted to 40th place in the download rankings—a position it hasn’t sniffed since April 2017. This decline echoes the broader trends in the digital currency market, where fortunes can turn quicker than a toddler throwing a tantrum.
Retail Traders: The Fickle Friends
The dwindling app download numbers are a clear sign of how retail traders, who constitute a significant chunk of trading volume, can be as unpredictable as a cat on caffeine. Back in December, when Bitcoin prices soared to nearly $19,000, Coinbase was riding high as one of the top finance apps. Fast forward to June, and it seems many of those enthusiastic traders have taken their toys and gone home—at least for now.
User Complaints and Growth Pains
Things have gotten rocky for Coinbase, especially after a digging effort by Mashable unearthed 134 pages of complaints sent to the U.S. Securities and Exchange Commission (SEC) by disgruntled users. It seems that the 40-fold surge in consumer demand during 2017, along with transaction volume surges as high as 295%, left the platform’s customer service team feeling a bit overwhelmed. A Coinbase spokesperson responded with a classic “we’re growing too fast” excuse, which is like saying there’s no cake at a birthday party because it’s too crowded—potentially true but still not very satisfying for those itching for a slice.
Brian Armstrong: The Unfazed CEO
CEO Brian Armstrong isn’t sweating the short-term ups and downs. In a recent Twitter rant (because where else does one vent about market concerns?), he noted that a downward market serves to filter out the “players who are there for the wrong reasons.” Essentially, he was suggesting that sometimes you gotta clean house, even if it means dealing with a few defeated traders lounging around in your living room.
Looking Ahead: Coinbase Custody
Despite the recent turbulence, Coinbase is making waves with its new launch: the “Coinbase Custody.” This digital assets custodian service for institutional investors is safe and regulated—just what you’d want as your money takes a nap in a digital vault. With over $20 billion in crypto stored over the last six years, the new service, compliant with SEC regulations and supported by Electronic Transaction Clearing (ETC), aims to add a layer of comfort for those sitting on heaps of digital gold.
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