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- After days of repeated sell-offs after its inflated initial public offering, Coinbase Global (NASDAQ:COIN) shares have risen roughly 20% in the last three months. The exchange’s overreliance on trading fees is the source of much of the mistrust
- Malicious ransomware as a service (RaaS) has grown in popularity in recent years, with over 4,000 intrusions occurring daily in the United States
- Furthermore, the same approaches can now be used to combat illegal operations. Wallets associated with merchants who sell illicit firearms or narcotics may be blacklisted
After days of repeated sell-offs after its inflated initial public offering, Coinbase Global (NASDAQ:COIN) shares have risen roughly 20% in the last three months. The exchange’s overreliance on trading fees is the source of much of the mistrust. Coinbase is a cryptocurrency brokerage platform for buying, selling, and transferring cryptocurrencies that make most of its money from trading commissions. Despite its rapid expansion, the cryptocurrency brokerage business is rushing to provide the best possible pricing for consumers interested in investing in cryptocurrencies, reducing profits. Coinbase, on the other hand, recognizes this and is diversifying into a market with enormous potential. So, let’s take a look at why the stock is a good investment.
Malicious ransomware as a service (RaaS) has grown in popularity in recent years, with over 4,000 intrusions occurring daily in the United States. Hackers infect the computers of their victims with software, which locks them down and demands a ransom in exchange for the unlocking service. Furthermore, hackers’ appetites have piqued, with demands for ransom in the millions of dollars. In May, a major fuel pipeline was hacked, causing service disruptions and forcing the operators to pay the ransom. Eventually, those funds were discovered. That leads us to the main point: cryptocurrencies like Bitcoin are increasingly being used by hackers to demand ransom from victims in order to unlock their machines. Coinbase’s blockchain analytics could be extremely useful in locating them. This works by matching hackers’ wallet addresses to know-your-customer (KYC) information kept in the company’s database, allowing law authorities to identify them. It’s a measure that could help the bitcoin community regain trust.
Furthermore, the same approaches can now be used to combat illegal operations. Wallets associated with merchants who sell illicit firearms or narcotics may be blacklisted. If they are Coinbase customers, it can also reveal the identity of criminals doing business with them. Furthermore, because most cryptocurrencies have a public ledger, the corporation can track the flow of funds to and from wallets suspected of engaging in tax avoidance practices. Despite its tiny size, Coinbase has landed contracts with the IRS and the Secret Service, as well as inquiries from Immigration and Customs Enforcement. At the end of the day, keep in mind that, unlike many cryptocurrencies, Coinbase stock is backed by strong fundamentals. Revenue and earnings increased by 1,040 percent and 4,918%, respectively, to $2.033 billion and $1.606 billion in the second quarter of 2021. Its financials are rapidly catching up to the company’s market capitalization of $56.32 billion.
Coinbase (the world’s 13th largest digital currency exchange by volume) now trades 83 cryptocurrencies, up from 54 in the first half of 2020.
The company has set a lofty aim of persuading more than 1 billion people to trade cryptocurrencies, and it has devised a brilliant strategy to do this. On its platform, users may view instructional videos and receive cryptocurrency in exchange for their time, which it could easily rebrand to attract advertisers. During the second quarter, about 2.3 million consumers participated in one of its learning campaigns. Furthermore, its latest effort is making a move toward bitcoin lending and borrowing, which has grown into a multibillion-dollar sector.
Investors pledge their tokens to take out a low-interest asset loan to cover their expenses while their principal remains unchanged in this configuration. Overall, Coinbase is evolving at a breakneck pace, much like cryptocurrencies.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
