A lot of activity has been happening around Coinbase, one of the most popular U.S. exchanges. But being active isn’t the same as being productive, a report released by diar shows that the Coinbase’s trading volumes are at a year’s low. With that in mind, let’s recap what the U.S exchange has been recently up to.
New crypto listings
One of the bigger announcement over the last couple of weeks was the fact that a new listing system, that will allow anyone to list their crypto to the exchange providing that they meet the“standards” of Coinbase and the “local law.”
Prior to this announcement, Coinbase demonstrated an interest towards five altcoins, none of which are yet available on the exchange. cardano, basic attention token, stellar lumens, Zcash, and 0x, all these five altcoins are prominent cryptos that are rapidly developing. Currently, stellar is 6th and cardano is 9th in coinmarketcap’s top-100. However, the company state that before these cryptos can be listed, a good deal of exploring into them is yet to take place. In a post regarding the matter on their official blog, the company claimed the following:
“These assets will require additional exploratory work and we cannot guarantee they will be listed for trading. Furthermore, our listing process may result in some of these assets being listed solely for customers to buy and sell, without the ability to send or receive using a local wallet.”
Essentially, what the users of Coinbase have been given is a hope, that possibly, just maybe, but no promises, new listings will appear on the exchange. This is a convenient and safe strategy, allowing the company to show intentions of expansion and development, however not tying themselves down with anything definite, as if saying: time will tell.
Give newcomers a chance
As the cryptomarket is growing more people, who previously have hardly or never had any encounters with digital assets, are attempting to get to grips with the world of crypto and “oh, there are other cryptocurrencies apart from bitcoin.” Being a novice in any field is a difficult and usually miserable time, and it doesn't help if all you get instead of advice or help is a condescending smirk, as if saying: every fool knows the answer to that! But newcomers need to welcomed and taught, and not ignored.
Coinbase has kindly thought of that and established a program for those who are still wobbly on their crypto feet. The exchange is offering three features to those ready to get into bitcoin and the rest and become more educated about cryptos.
From $1.6 to $8 billion?
It has been reported that Coinbase is on the final stages of closing a deal with Tiger Global, an immense pro-crypto New-York-based investment fund. If this deal is to be successful then the exchange will reportedly get $500 million, half of which will be added to their own funds. This is potentially very good news for Coinbase, giving them more opportunities to expand, and boosting their value fivefold, however until there is a confirmation of a successful deal, this “good news” is in the realm of: reportedly and allegedly.
White did you go?
On a less positive note, a prominent figure in the Coinbase hierarchy, Adam White, left the position of vice president and general manager of the institutional business department. White was among the first to join the company, when it was still in its early stages of development, and played an important role in the exchange becoming one of the most prominent U.S. crypto exchanges. A company spokesman commented Whits’s departure:
“While we’re extremely sad to see him go, we’re also confident in that group’s ability to keep executing on the vision that he laid out to be the most trusted venue for institutional investors to trade cryptocurrencies.”
Considering the hanging deal with Tiger Global, the leave of such an important player may potentially damage relationships with investors, until Coinbase proves that they are firmly standing on their own feet.
Just smile and wave
Despite an array of mostly positive activity of the last couple of weeks, and Coinbase CEO’s highly optimistic outlook on their Q3 situation:
In the conclusion of his Q3 report, Brian Armstrong claimed:
The fact that the exchange’s trading volumes are the lowest they have been in a year, in that very same highly productive Q3, some like the blockchain technologist Preston Byrne, believe that Coinbase is currently in a vulnerable position.
However, it's intriguing to see what Armstrong means by "double down — and stay humble, scrappy, and focused — to do even more." I guess Q4 will show us what more Coinbase expect to do.
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