מה רע ב- Coinbase?

The well-known cryptocurrency exchange Coinbase, after entering the stock market, upset investors with a fall in capitalization of about 30%.

The crypto exchange entered the stock market during a period of rapid growth in bitcoin. However, when the cryptocurrency market began to storm and the value of bitcoin fell by 50%, the joy of investors came to an end, turning into a panic nightmare. The sharp drop in cryptocurrencies led to a significant loss of capital and affected the Coinbase platform, which has not been able to recover its positions recently.

Compared to today, the financial model of the Coinbase exchange until May, in terms of image, was flawless and did not succumb to criticism. According to well-known economists, many cryptocurrency exchanges, against the background of market instability and uncertainty, may continue to depreciate.

Coinbase under the influence of a downtrend

In light of today's negative events and current unfavorable trends, the cryptocurrency market and exchanges are going through a difficult period. The downtrend reduces the interest of large investors in buying tokens to almost zero. Thus, these events also have a negative impact on Coinbase. Doubt, uncertainty, fear and panic swept the market. Both small users and large investors have taken a wait-and-see attitude and do not dare to buy or sell cryptocurrencies in the same way.

However, in the first quarter of this year, crypto exchange Coinbase had a very different opinion, having collected $ 1.8 billion. Compared to the profit in 2020, the exchange even has a relatively good indicator.

In May, prices collapsed and the turnover of cryptocurrency trading lost 40% of the previous figure. The cryptocurrency market was influenced by Chinese restrictions and regulations, then the UK introduced restrictions, not to mention the constant pressure from the US regulators. As a consequence of all these components, by July the volume of buying and selling cryptocurrencies fell to $ 65.8 billion per day.

Cryptocurrency purchases as a foundation

The Coinbase exchange is of high quality, but it is limited in the range of possibilities and does not have unique features that distinguish it from other crypto platforms. Cryptocurrency exchanges provide services for the purchase, sale and exchange of cryptocurrency assets in an anonymous mode, like many others that exist.

The platform also only has 50 tokens available for trading, including Bitcoin. Coinbase also lost additional customers, as it is not as large and does not operate in large volumes, unlike other cryptocurrency exchanges. The main competitors of the platform are undoubtedly Binance and Huobi , which offer over 100 different cryptocurrencies, have a wide range of services, financial instruments and are more accessible and user-friendly. 

Many experts are of the opinion that this cryptocurrency exchange is slowly dying and may even leave the cryptocurrency market. Also, in their opinion, in order to stay on the market, Coinbase needs to be updated and increased in traded currencies, to expand the services and financial instruments provided, to become more accessible and user-friendly. If the cryptocurrency exchange takes all these measures, then their performance by the end of this year may change significantly for the better.

Coinbase currently has a total capitalization of $ 63.5 billion. This is not a bad indicator, but there are suspicions that additional losses will occur by the end of this year.

Many experts are of the opinion that this cryptocurrency exchange is slowly dying and may even leave the cryptocurrency market. Also, in their opinion, in order to stay on the market, Coinbase needs to be updated and increased in traded currencies, to expand the services and financial instruments provided, to become more accessible and user-friendly. If the cryptocurrency exchange takes all these measures, then their performance by the end of this year may change significantly for the better.

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