Cryptocurrency exchanges are riding a wave of unprecedented growth, with funding now exceeding $1 billion. Industry leader Coinbase has raised half of this amount, and as a result, dominating the US market despite recent volume declines. As the crypto landscape evolves, exchanges are expanding their offerings and navigating regulatory uncertainties, setting the stage for a new era in digital asset trading.
Cryptocurrency exchanges surpass $1 billion in funding
Crypto exchanges have raised over $1 billion in funding. Coinbase alone raised $500 million. They now control a third of US trading volume, reaching $220 billion. Backers want to see more trading activity to boost income.
Coinbase leads US market share despite volume decline
Coinbase trading hit a one-year low, matching global spot market trends. Yet, they’ve seen a 12% volume increase this year so far.
Coinbase’s financial outlook and expansion plans
Bloomberg reports Coinbase had $503 million in cash in mid-2018. They aim for a $456 million profit in 2018, up 20% from 2017. A recent $300 million funding round could push their reserves to $1 billion by year-end.
The exchange plans to add more crypto assets, improve its stablecoin, and attract institutional investors to its custody services.
Coinbase token listings and exchange acquisitions heat up
Coinbase listed Basic Attention Token (BAT) recently. They hint at adding Cardano, ZCash, and Stellar Lumens soon.
Exchanges are changing hands too. Circle bought Poloniex, and a South Korean firm acquired Bitstamp.
The push for token utility and regulatory challenges
With many options now on the table for users to purchase Bitcoin, the massive investments being poured into platforms can only indicate backer outlook for the sale of tokens, little to none of which have found any utility to date besides speculation, spearheaded by the signals of social media.
With regulators so far falling short in concerting efforts in classifying crypto assets, exchanges may find legislative paralysis an opportunity rather than a threat – at least for the time being (Diar, 12 February).
The article was provided by our partner Diar.
