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Home / Business / Coinbase: This year’s cryptocurrency prices may drop as “significantly” as they did in 2018

Coinbase: This year’s cryptocurrency prices may drop as “significantly” as they did in 2018



Coinbase is an eight-year-old private company headquartered in San Francisco. It is a trading platform for Bitcoin and other cryptocurrencies. It announced its 2018 financial results on Tuesday evening and said it foresaw various situations. This year’s market includes a sharp drop in prices.

The price of bitcoin has soared from $10,600 per bitcoin to more than $57,000 in the past six months. This is because companies such as Tesla, PayPal, and Square have emphasized the need to purchase reserves of the currency and make it possible for customers to do The currency transaction.

Coinebase said that in the three months ending in March, the company had 6.1

million trading users, or MTUs, and the company made money from currency transactions that were bought and sold on its platform. Coinebase has 6.1 million trading users.

Forecast this year, “in view of the inherent unpredictability of our business […] We have provided a series of possible solutions for the whole year of 2021. ”

The “high” situation shows that the overall market value of cryptocurrencies continues to increase, pushing Coinbase’s MTU to 7 million.

The company stated that the “medium” scenario “assumes that the market value of cryptocurrencies is flat” and that cryptocurrency prices are “low to moderate volatility.” It said that this might reduce the MTU to 5.5 million.

The company stated that the “low” situation will result in “a substantial decline in the market value of cryptocurrencies, similar to the decline observed in 2018, after which crypto asset price fluctuations have been minimal.

The price of Bitcoin in 2018 plummeted from a high of more than $19,000 per bitcoin to below $4,000.

“In this case, we assume that the MTU will be reduced in a corresponding manner and reach a level similar to that of the fourth quarter of 2020 at the end of 2021.”

As for its own results, the increase in cryptocurrency prices is a boon to the company’s business volume. Coinbase’s trading volume on the platform in the March quarter was $335 billion, generating $1.8 billion in revenue. The company expects the net income of this activity to be between 700 million and 800 million US dollars.

Since 2015, Coinbase has received $539 million in venture capital financing from companies such as AH Capital Management LLC, Manhattan Venture Partners, Y Combinator, and Initialized Capital Management.


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