Coinbase, founded in 2012, is one of the world's largest cryptocurrency exchanges. The company was started by Brian Armstrong and Fred Ehrsam, who were both software engineers at Airbnb at the time. Coinbase began as a way for people to buy and sell Bitcoin, but it has since expanded to offer trading for other cryptocurrencies like Ethereum, Litecoin, and Bitcoin Cash.
On April 14, 2021, Coinbase went public on the Nasdaq Stock Market, becoming the first cryptocurrency exchange to do so. The company's initial public offering (IPO) raised $1.8 billion, and its market cap quickly soared to over $100 billion, making it one of the largest and most valuable public companies in the world.
As of December 2021, Coinbase has over 68 million verified users in over 100 countries. The company has traded over $455 billion worth of cryptocurrencies on its platform, representing a significant portion of the global cryptocurrency market.
Despite its success, Coinbase has faced some challenges over the years. In 2019, the company faced a public backlash after acquiring Neutrino, a company whose founders had previously worked for an Italian spyware firm. Coinbase quickly moved to address the concerns, and the Neutrino team was eventually disbanded.
Advantages of Coinbase:
- User-friendly interface and easy-to-use platform.
- High level of security and reliability.
- Wide range of supported cryptocurrencies.
- Large user base and global reach.
- Extensive educational resources for users.
Disadvantages of Coinbase:
- High fees compared to other cryptocurrency exchanges.
- Limited customer support options.
- Restrictions on certain activities, such as day trading.
- Limited availability of certain cryptocurrencies.
- Potential for outages and technical issues during periods of high market volatility.
According to Coinbase's Q3 2022 balance sheet report, the company's total assets amounted to $8.6 billion, with a net income of $1.2 billion for the quarter. The company's stockholders' equity was reported at $3.8 billion.
Coinbase's top ten major stakeholders, as of September 30, 2021, include the following individuals and investment firms:
- Brian Armstrong (Founder and CEO) - 22.3%
- Fred Ehrsam (Co-Founder) - 5.5%
- Andreessen Horowitz - 5.5%
- Paradigm Fund - 4.2%
- Greylock Partners - 3.6%
- Tiger Global Management - 2.9%
- Wellington Management - 2.6%
- Fidelity Investments - 2.3%
- Polychain Capital - 2.2%
- The Vanguard Group - 1.7%
Coinbase has designed its platform to be user-friendly and easy to use, making it accessible to both new and experienced traders. The process of buying and selling cryptocurrency on Coinbase is straightforward, and users can easily navigate the platform with its intuitive interface.
To buy or sell crypto, users simply need to create an account on the Coinbase platform, complete the verification process, and link a bank account or credit card. Once these steps are complete, users can begin buying and selling cryptocurrency using the available funds in their linked account.
The platform offers various tools and features that make buying and selling crypto easy and efficient, including real-time price charts, customizable price alerts, and an intuitive order book. Additionally, Coinbase offers a mobile app that allows users to trade and manage their crypto on the go.
Overall, Coinbase's platform is user-friendly and easy to navigate, making it accessible to both novice and experienced traders.
