Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Coinbase: Possible ‘significant’ drop in crypto prices this year as in 2018

Coinbase: Possible ‘significant’ drop in crypto prices this year as in 2018

Coinbase, the eight-year-old, privately owned, San Francisco-based startup that is a trading platform for Bitcoin and other cryptocurrencies, announced Tuesday night its 2018 financial results, saying it predicts a wide range of scenarios for this year including a sharp fall in prices .

The price of Bitcoin has risen over the last six months from $ 10,600 to over $ 57,000 US dollars per Bitcoin, as companies such as Tesla, PayPal and Square have focused on buying foreign exchange reserves and enabling customers to trade in the currency.

Coinebase, which monetizes the amount of people trading on its platform to buy and sell currencies, had 6.1

million transaction users or MTUs in the three months ending in March, it said.

To predict this year, “Given the inherent unpredictability of our business […] we provide a number of possible scenarios for the entire year 2021, ”said the company.

In the “high” scenario, the overall market value of crypto continues to rise, pushing Coinbase’s MTUs up to 7 million.

A “middle” scenario assumes flat crypto market value, “the company said, and” low to moderate volatility “in cryptocurrencies. It would potentially reduce MTUs to 5.5 million, it said.

“Low” scenario will see a “significant decline in crypto market value similar to the decline observed in 2018,” the company said, “and low levels of cryptocurrency price volatility thereafter.

Bitcoin’s price in 2018 plummeted from a high of over $ 19,000 per. Bitcoin for under $ 4,000.

“In this scenario, we assume that MTUs will fall in a similar manner and end 2021 at similar levels as Q4 2020.”

In terms of its own performance, the rise in cryptocurrencies has been a boon for the company’s business volume. Coinbase had a trading volume of $ 335 billion on its platform in the March quarter, producing $ 1.8 billion in revenue. The company expects $ 700 million to $ 800 million in net revenue from this activity.

Coinbase has received $ 539 million in venture capital since 2015 from firms that include AH Capital Management LLC, Manhattan Venture Partners, Y Combinator and Initialized Capital Management.

Source link