Coinbase, the bitcoin trading broker that has exploded in popularity as cryptocurrencies surge and nose dive, has encountered an unusual problem for a Silicon Valley startup: Too many investors are trying to get in. The six-year-old company crossed $1 billion in revenue last year, Recode has learned from industry sources, a tremendous rise fueled by layman interest in both bitcoin and competing virtual currencies that users can buy and sell through the app.
By essentially using crypto trading as a loss leader instead of its primary business like Coinbase and other apps, Robinhood could substantially expand beyond the 3 million users it already has. Simplifying trading and tracking could bolster Bitcoin and Ethereum. And by combining it with traditional equities trading in a single app, Robinhood could further legitimize the cryptocurrency craze.
More on Robinhood’s plan to offer free crypto-trading and the pressure it put’s on Coinbase, while also helping to legitmize crypto to a degree.
via Robinhood adds zero-fee cryptocurrency trading and tracking at TechCrunch
What’s lost amid all of this excitement, however, is that Coinbase is quietly and rapidly executing a classic “Trojan Horse” strategy that could ultimately end up with it putting traditional brokerages out of business.
via The Coinbase Master Plan for World Domination: How Traditional Brokerages Are Being Set Up for Disruption at Never Stop Marketing…