The Meteoric Rise of Coinbase

In 2017, Coinbase accomplished a financial feat that many can only dream of – hitting $1 billion in revenue, exceeding projections of $600 million by a staggering 66%. How did they do it? It’s like watching a toddler eat cake at a birthday party: comically gluttonous but incredibly impressive! As reported by industry sources, Coinbase capitalized on the burgeoning interest in cryptocurrency, and boy, did they take the bull by the horns.

A Flood of New Investors

As Bitcoin entered a dramatic bull run in November 2017, an avalanche of new users flocked to Coinbase. On the day Bitcoin futures launched on the CME, Coinbase saw a jaw-dropping 100,000 new accounts created in a single day! It’s like opening the floodgates of a water park, only instead of screaming kids in swimsuits, you have enthusiastic traders ready to dive into the crypto pool.

The Revenue Machine

So how does Coinbase keep the revenue flowing? Primarily through transaction fees on its Buy/Sell feature for converting fiat to crypto and through trades on its GDAX (now known as Coinbase Pro) exchange. It’s a classic business model: sell a service for a fee, and pray your swimming pool doesn’t dry up!

Investors Are Hungry

With great success comes an influx of investors hoping to snag a piece of Coinbase’s juicy profits. Shares of this crypto titan have become the hottest ticket in town, leading many, including venture capitalists, to circle like hawks. However, Coinbase has established strict policies, reminding shareholders that selling their shares on secondary markets could result in severe consequences – talk about putting your money where your mouth is! They said in a statement:

“As a private company, Coinbase does not allow trading of stock on secondary markets for a variety of reasons…”

The Path Ahead

In August 2017, Coinbase boosted its operation by raising $100 million in a Series D funding round, committing funds to expand its engineering and customer support teams while also opening a new office in New York City. By December, Coinbase had attracted more than 13 million users, eclipsing mainstream brokerage firms like Charles Schwab. No pressure, right?

The Final Thoughts

While the crypto market can be as unpredictable as a cat on a tightrope, Coinbase’s strategic moves in 2017 have set a solid foundation for what could be a robust future in the ever-evolving world of cryptocurrency. Buckle up – it’s going to be a bumpy ride!