The paper or metal currency is being replaced by virtual currencies, and more users have started accepting them as per the latest information from the market. However, the trend is yet started and will last for some more years, according to experts in virtual currencies. In a short span the same will be on peak in the market.
Coinbase is zooming in recent months as its user base hits 35 million. It has users in more than 100 countries, and the cryptocurrency exchange is seeing tremendous growth in this year. It is now the third-largest crypto exchange in the world, and the average daily trading volumes exceed $500 million on most days.
Coinbase and its regulatory approach
Unlike other cryptocurrency exchanges, Coinbase is known for its stringent regulatory norms, and some users have even criticized the company for this strategy. However, this strategy has worked in favor of Coinbase over the years as new users feel confident about investing in such exchanges. This year alone, it has added over 5 million new users, and this is good growth considering the fact that the global economy is not in good shape due to the pandemic.
Demand coming from institutional investors
The advantage of Coinbase is that it has a good blend of retail as well as institutional investors. The demand from institutional investors in recent years has been very encouraging for the company. As the coronavirus pandemic continues to haunt the global economy, more and more institutional investors are looking at alternate options, and the crypto industry is gaining a lot in this situation.
Acquisitions of Coinbase
Coinbase is also going aggressive with its approach, and it has recently acquired Tagomi, which is one of the leading brokerage institutions in the crypto industry. It was earlier rumored that Coinbase had offered $150 million to acquire Tagomi. However, company officials discarded such rumors even though they did not disclose the exact figure of purchase.
Considering the growth of Coinbase, it is not surprising to see that more and more investors are getting attracted towards this exchange. There are rumors that the company is planning an IPO issue this year. If this happens, it can further stabilize the base of the exchange in the industry. This will be the first big company to enter into the public market in recent years, and it can set the trend for many such IPOs in the near future.