TL;DR
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Here are the areas Coinbase is focusing on to win in the current bear market: and while it’s all very boring – it’s a genius move!
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Regulation: Coinbase stands and fights.
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Institutions: Coinbase just became the first crypto-focused platform in the US to offer regulated and leveraged crypto futures alongside traditional spot trading.
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Infrastructure: Coinbase can expect tens (eventually hundreds) of millions in revenue per year from Base.
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Focusing on regulations, institutions and infrastructure makes for a boring news headline…But man is it a profitable strategy.
Full story
Regulations, institutions and infrastructure.
Three of the driest words in the English language.
Here are the areas Coinbase is focusing on to win in the current bear market: and while it’s all very boring – it’s a genius move!
This is why…
Regulation
The SEC hits as many US stock markets with as many lawsuits as possible.
The typical response from exchanges is to settle out of court for a lump sum and remove all cryptocurrencies from their platforms once they are named by the SEC in each lawsuit whatsoever.
For example, Solana, Polygon, and Cardano were all removed from Robinhood, eToro, and Bakkt at the time they were named in SEC suits.
Coinbase has not done this. Instead, the company stands and fights.
As a result, it has won the affection of the wider crypto space, while at the same time becoming one of the few beginner-friendly platforms still offering these popular tokens.
(Win, win).
institutions
Coinbase just became the first crypto-focused platform in the US to offer regulated and leveraged crypto futures alongside traditional spot trading.
What does that mean?
It means institutional investors with large wallets can now use Coinbase to bet on the future price(s) of cryptocurrencies – without to worry about regulatory issues.
And with this new offering comes more revenue from fees.
Infrastructure
Speaking of fees… remember how Coinbase’s Ethereum Layer 2 ‘Base’ protocol launched recently?
Since going live in early August, the company has earned $1.6 million in fees from people trading tokens on Base – meaning Coinbase can expect to make tens (eventually hundreds) of millions in revenue per year.
So yes – focusing on regulations, institutions and infrastructure makes for a boring news headline…
But man is it a profitable strategy.