As you might have had a glimpse of the crypto market and the latest settings going about in it, the investors and financial corporations have taken their wallets to the crypto market, and they are buying heavy crypto. This amazing trend has a few crypto backers to thank for such as Elon Musk and other dedicated financial experts who have so beautifully prepared the rest of the investment community to pour in their hard-earned money into buying crypto.
What does the Data from Coinbase’s S-1 Phase Suggest?
Coinbase, which is a digital currency exchange that specializes in converting cryptocurrency into Fiat money and vice versa, has recently announced buying crypto in heavy capacity. This has fundamentally changed the whole business model for the company. The number of retail customers who have been doing business with Coinbase was gradually declining in 2018, according to a report crafted in their S-1 phase. The sharp decline translates falling from 80% to about 36% starting from 2018 and ending in 2020.
A substantial data that pointed towards the lack of institutional trading, thus ending up having a heavy toll on Coinbase’s business in 2018, was made public in the S-1 phase. As more and more trading investors and retail customers will set up doing business with Coinbase, the more and more crypto-based assets, they will be able to support at the end of the day.
Current Practices of Coinbase at Securing an Institutional Footprint
That is why it has made such an incredible push where the company has helped various firms like Tesla and MicroStrategy to purchase Bitcoin that are otherwise worth billions. This institutional footprint has allowed Coinbase to not only bring their overall retailer trading numbers up but has been working with other financial corporations to help them acquire more and more Bitcoin in the process.
Currently, their scope of trading and the investor footprint is also rising as according to a spokesperson from Coinbase, they have been in works with potentially nine and even ten-figure traders from around the world, which is not something that is impossible as Tesla and MicroStrategy have been buying loads of cryptocurrency using Coinbase as their broker.