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Coinbase breaks into the Fortune 500 Club; CEO-“Just getting started!”

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Coinbase charted history as the first crypto firm to make it into the coveted Fortune 500, ranking 437th on the list of the biggest U.S. companies. Elated over the news, CEO Brian Armstrong tweeted “Just getting started!” and said there will be many crypto companies on the list by end of the decade.

The Fortune 500 represents two-thirds of U.S. gross domestic product, with revenue totaling $16.1 trillion.

Coinbase had a good run in 2021 and went public through a direct listing in April of the same year, less than a decade after it was founded. Its revenue was $7.8 billion, just over the minimum of $6.4 billion that companies are required to enter the Fortune 500 list.

However, its 2022 journey began on a rough footing as crypto prices plummeted and trading volumes took a hit. It then resorted to diversifying its revenue streams by officially launching its own NFT marketplace in early May, which did not turn out much profitable.

According to Bloomberg, the newly launched platform could garner only about 2,900 unique active users.

Since Coinbase’s business relies heavily on crypto trading, the current downtrend has put a dent in its earnings. Trading volume on its platform in the first quarter was $309 billion, short of the $331.2 billion analysts expected.

The trading platform also failed to live up to analyst expectations for the first quarter, reporting net revenue of $1.16 billion for the first three months ending March 31 and a net loss of $430 million.

Coinbase’s shares declined by 82% since the last ATH

At the time of writing, its stock price [COIN] was trading at around $61, down by 82% since its previous peak at $357 on 9 November 2021.

While Coinbase initially planned to triple the size of the firm going into 2022, its chief operations officer, Emilie Choi, said in a note to employees last week that the company would be scaling back hiring, partly due to prevailing market conditions.

According to its first-quarter earnings report, Coinbase recruited 1,200 people in the first quarter of the year. At present, it has more than 4,900 employees, as per data provided on its website. 

CoinSwitch’s CEO urges Indian Gov to develop a set of laws to bring ‘peace and certainty’

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CoinSwitch CEO Ashish Singhal at a Davos Meet called for regulatory clarity in order to protect investors’ interests and uplift the crypto sector which has been badly beaten down. The former Amazon engineer turned co-founder of one of India’s largest crypto trading platforms stated,

“Users don’t know what will happen with their holdings is the government going to ban, not ban, how is it going to be regulated.” “Regulations will bring peace, more certainty,” he added

CoinSwitch, which is valued at $1.9 billion, boasts of having more than 18 million users. The firm, based in India’s main tech hub of Bengaluru, is backed by Andreessen Horowitz, Tiger Global, and Coinbase Ventures.

In India, crypto exchanges have faced numerous difficulties since the stiff tax went into effect, last month. Owing to the hawkish stance of the Reserve bank, many banks have cut ties with trading platforms.

Due to this, CoinSwitch and many others were forced to disable rupee deposits sending alarms among investors.

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In April, the US-based largest crypto exchange Coinbase also had to pause the use of a state-backed inter-bank fund transfer service shortly after its launch.

Later in May, its CEO Brian Armstrong blamed the RBI for halting trading operations and had to postpone its hiring process.

CoinSwitch Ashish Singhal- “A lot more needed to be done.”

Speaking at the World Economic Forum [WEF] Singhal said, “While moves on taxation and certain advertising regulation had brought some relief, a lot more needed to be done,” adding, “India should develop a set of laws.”

The exec in his speech suggested that these should be norms for identity verification and transferring crypto assets, while for exchanges, the authorities should take necessary steps to track transactions and report them to any authority as required.

While India’s central bank continued to maintain its stiff stance saying it has”serious concerns” around private cryptocurrencies, the nation’s Prime Minister on the other hand Narendra Modi said such “emerging technologies should be used to empower democracy, not undermine it.”

But the federal government’s move to tax income from crypto assets has been seen by the industry as a sign of acceptance by New Delhi.

WSJ Claims Crypto Has An Insider Trading Problem; Binance & FTX Denies It

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A Wall Street Journal article on insider trading in crypto platforms has caused quite a stir. Citing publicly available data, the article claimed that several anonymous crypto investors profited from inside knowledge of when tokens would be listed on exchanges.

It then takes back to August 2021 when one unknown crypto wallet had acquired a stake worth $360,000 of Gnosis coins, days before Binance revealed via a blog post that it would list Gnosis, to be traded among its users.

Shortly after the announcement, the wallet took advantage of the token’s rising price and began liquidating it entirely. As per an analysis performed by Argus Inc, the anon wallet netted a profit of about $140,000 and a return of roughly 40%.

The same wallet also exhibited similar patterns with at least three other tokens.

The report further said that the wallet was among 46 that purchased a combined $17.3 million worth of tokens that were listed shortly after on Coinbase, Binance, and FTX. However, the identity of the wallet’s owners remains unknown.

Crypto Exchanges’ Reaction To The WSJ Report

Spokespersons from both Binance and FTX said they are studying the analysis before confirming the trading activity in Argus’s report didn’t violate their policies. Coinbase maintained it has compliance policies in place which prohibit employees from trading on privileged information.

A Binance representative divulged that employees have a 90-day hold on any investments they make and that leaders in the company are mandated to report any trading activity on a quarterly basis.

“There is a longstanding process in place, including internal systems, that our security team follows to investigate and hold those accountable that have engaged in this type of behavior, immediate termination being minimal repercussion,” she said.

The spokesperson also said none of the wallet addresses were linked to its employees

In an email sent to WSJ, FTX CEO Sam Bankman-Fried a.k.a SBF wrote that the firm has a zero tolerance policy toward employees from trading on or sharing information related to upcoming token listings.

“The trading highlighted in Argus’s analysis didn’t result from any substantive violations of company policy,” SBF added.

Coinbase Unveils Coinbase App, DeFi Wallet and Browser

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Coinbase, America’s largest cryptocurrency exchange, has made Web3 application capabilities, including a hot wallet and browser, available to a select group of its mobile app customers.

Select users will be able to use the app to access Ethereum-based decentralized apps (DApps) like Uniswap and OpenSea.

Eligible users will be able to trade on nonfungible token (NFT) marketplaces, make swaps on decentralized exchanges (DEXs), and interact with decentralized finance (DeFi) lending protocols to borrow and lend funds, according to Coinbase’s director of product management, Rishi Dean’s announcement.

Coinbase to ease up access to web3

Customers may exchange currency using a hot wallet in addition to using the mobile browser to access DApps. Unlike decentralized hot wallet technologies like MetaMask, the Coinbase hot wallet will be co-custodial. This means that the company will keep the wallet’s private key, which can also be maintained by the user.

The wallet and DApp capabilities are powered by multi-party computation (MPC) technology, which preserves senders’ and receivers’ privacy while ensuring transaction accuracy.

Sharing key custody, according to Dean, is a security strategy that protects customers from device-related concerns. “This means that even if you lose your smartphone, your Dapp wallet key is safe, and Coinbase may be able to assist with recovery through our live help,” he said.

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Coinbase Unveils Coinbase App, DeFi Wallet and Browser 3

The improved wallet functionality of Coinbase is positive for Web3 developers who may be having difficulty gaining new consumers to demonstrate their work. The exchange has around 90 million registered users, according to Statista.

This is the month’s second significant product launch. On May 4, the exchange debuted its long-awaited Coinbase NFT marketplace, which saw only $75,000 in sales volume from only 150 transactions on its first day.

Coinbase’s first-quarter financial report revealed that the exchange is struggling in a depressed market, with the exchange reporting its first net loss since going public last year.

Since Q1 2021, revenue has plummeted 27 percent to $1.1 billion from $1.6 billion, while monthly users have declined from 11.4 million in Q4 2021 to 9.2 million.

Coinbase Bogged Down By Indian Authorities’ Pressure Tactics, Heads Out

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In a major development, leading US-based cryptocurrency exchange Coinbase has decided to leave the Indian market within three days of its launch. Brian Armstrong, the co-founder, and chief executive said because of “informal pressure from the government and the Reserve Bank of India”.

On April 7, Coinbase launched its crypto trading service in India which allowed its clients in the nation to buy crypto via UPI [unified payments interface].

But the platform’s operations were left paralyzed after the National Payments Corporation of India [NPCI], the body that manages UPI, made a bizarre claim that it was “not aware of any crypto exchange using UPI.

“Speaking on last month’s fiasco in the first quarter 2022 earnings call on May 10, Armstrong made a bold statement that the informal pressure from the government and RBI could be in violation of the Supreme Court of India’s ruling, which had overturned the central bank’s ban on cryptocurrency.

“India is a unique market in the sense that the Supreme Court has ruled that they can’t ban crypto, but there are elements in the government there, including at Reserve Bank of India, who don’t seem to be as positive on it,” Coinbase’s CEO said in its speech.

“And so they in the press, it’s been called a shadowban; basically, they’re applying soft pressure behind the scenes to try to disable some of these payments, which might be going through UPI,” he added.

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Coinbase Bogged Down By Indian Authorities' Pressure Tactics, Heads Out 5

In 2018, the Reserve Bank of India had earlier banned cryptocurrency, a decision overturned by the nation’s apex court over two years ago, but the central bank continues to informally exert pressure on banks from engaging with cryptocurrency exchanges.

Coinbase’s exit is just the beginning of the end?

India’s crypto market is in a dire state as several crypto firms and talents unable to find any alternative routes are exiting India to friendlier shores. TronWeekly previously reported on Indian cryptocurrency exchange WazirX’s co-founders, Nischal Shetty, and Siddharth Menon relocating to Dubai with their families.

In another shocker, India’s GST Council is mulling imposing 28 percent Goods and Services Tax on cryptocurrencies, as per media reports.

According to those reports, the GST Council has formed a committee to look into the proposal of levying 28% GST on all activities and services related to cryptos. The proposal might be tabled before the Council in its next meeting.

Coinbase Earnings Expectations Are Suppressed Following the Crypto and Stock Market Crash

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Coinbase, one of the world’s largest crypto exchanges, is about to disclose its Q1 financial report. Still, expectations, as well as the company’s stock value, have been hammered by the crypto market downturn.

The biggest financial report in the crypto business is expected to disappoint. Coinbase Global Inc. will disclose the report on May 10, and it is unlikely to match the company’s record-breaking revenue numbers from Q4 2021.

According to FactSet, the average analyst estimate for the company’s first-quarter sales is $1.5 billion. As a consequence, adjusted profits per share are down one cent.

According to Yahoo! Finance, revenue for this and upcoming quarters is expected to range between $1.24 billion and $1.92 billion.

Is the crypto downfall affecting just Coinbase?

Coinbase generates nearly all of its money through trading fees, which are among the highest in the business. The firm’s high-earning transaction fees have been impacted by the big drop in crypto markets this year.

The disappointing reaction to Coinbase’s much-hyped NFT marketplace is another factor affecting income. When compared to its competitors, the corporation only allowed a few people access, resulting in relatively low trade volumes.

Coinbase’s monthly transactional users (MTUs) may have also decreased during a quarter when crypto markets were primarily consolidating.

Between January and March of this year, most major crypto assets were range-bound, but in the last week, they have fallen to their lowest levels in 10 months.

Coinbase stock has taken a significant knock since the start of trade this week, indicating that Wall Street has factored in the disappointing earnings forecasts.

According to MarketWatch, COIN fell 19.5 percent in after-hours trade on Monday, May 9, to just $83.45. The stock price has plummeted by 47 percent in the last month, outperforming the cryptocurrency sector.

COIN is presently trading at an all-time low, down more than 75% from its all-time high of $342 in November.

Coinbase Seems to Be the 1st Ever Bitcoin-Backed Loan Acquirer From Goldman Sachs

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The mysterious corporation that took out Wall Street’s first bitcoin-backed loan from Goldman Sachs has been exposed as Coinbase, America’s largest crypto exchange. Goldman Sachs controls $2.5 trillion in assets as of 2021.

Coinbase has taken out a Bitcoin-backed loan from Goldman Sachs, according to Bloomberg, as part of a strategy to strengthen ties between the crypto and trading worlds.

Coinbase Institutional Head Brett Tejpaul said, “Coinbase’s work with Goldman is a first step in the recognition of crypto as collateral, which deepens the bridge between the fiat and crypto economies.”

The loan’s cash amount was not disclosed, but it was backed by a portion of Coinbase’s total holdings of 4,487 Bitcoin, which are presently valued at almost $170 million. The loan includes a 24-hour risk monitoring system, as well as a requirement that Coinbase fills up its BTC collateral if prices fall too low.

Coinbase’s first bitcoin-backed loan

While Bitcoin and other crypto-backed loans are common in the crypto industry, particularly on DeFi protocols, they are uncommon in traditional banking, where crypto is seen as far too risky and unpredictable as collateral.

Asset management firm Arca indicated in a May 2 blog post that potential borrowers are looking for more such opportunities. It claimed that “[this loan] demonstrates institutions’ willingness to utilize new tools with traditional methods.”

Brian Armstrong on free speech

Meanwhile, Coinbase CEO Brian Armstrong has laid out his vision for decentralized social media networks that allow for free speech.

He told the Milken Institute on May 2 that Twitter, now owned by Elon Musk, had the opportunity to “essentially embrace adopting a decentralized protocol” that the network could function on.

“I believe that freedom in all forms is worth preserving, and a lot of crypto is about economic liberty.” Another version is the right to free speech.”

Armstrong argues that a decentralized social media network would enable content producers to choose their own moderation standards. Access to all material would be democratized rather than algorithmically determined.

This would prevent certain content streams on a platform from being stifled, allowing users to see whatever they want.

Coinbase is Allegedly in Plans to Purchase Crypto Exchange Btcturk for $3.2B

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Coinbase, one of the largest cryptocurrency exchanges, is apparently intending to buy BtcTurk for $3.2 billion.

The two exchanges negotiated a price based on the market behavior of the Turkish lira and Bitcoin (BTC), landing at around $3.2 billion, according to Turkish digital media source Webrazzi, which cited a Thursday report from Mergermarket.

A term sheet has apparently been signed by one or both of the two companies.

Coinbase CEO Brian Armstrong has announced ambitions to expand to every country where the exchange is legally permitted to operate.

In March, Coinbase planned to buy 2TM, the parent company of Mercado Bitcoin; a crypto trading firm focused on Latin America.

Coinbase is also looking for a country director for its Turkish business. Part of the director’s tasks, according to the job description, include increasing the exchange’s “strategic alliances” in the nation.

Binance said on April 14 that it had opened a customer care center in Turkey to combat cryptocurrency fraud. As Turkey embraces the digital future, crypto and non-financial tokens (NFTs) are being regulated.

BtcTurk, which was founded in 2013, is one of Turkey’s largest and oldest cryptocurrency exchanges, competing with Paribu and others for market share. The business has seen more than $196 million in trade activity in the previous 24 hours, according to CoinMarketCap data.

Coinbase launched the NFT beta marketplace

As per the details from a blog post published on Wednesday, Coinbase NFT beta testers will be able to build online accounts as well as purchase and sell NFTs.

Sanchan Saxena, Coinbase’s vice president of product and ecosystem, suggested that the marketplace’s architecture will be a mix of a social networking platform and existing NFT markets like OpeaSea during a Tuesday press event.

Even though the marketplace is still in beta, Coinbase has promised $0 transaction costs for a limited period, and the exchange has partnered with 0x Labs to lower gas fees for Ether (ETH) transactions.

Users have the option of using their own wallets or the Coinbase Wallet.

The company is expected to extend access to the NFT marketplace depending on users’ waiting positions. The platform becomes available to anybody over the age of 18 “in the coming weeks.”

In addition, it also stated that it would “decentralize additional functions” in the future, such as user comments.

Coinbase NFT: First came alpha, here comes beta!

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After first announcing plans for it in October, Coinbase’s long-awaited NFT marketplace has now debuted in testing for a restricted group of users.

The beta NFT marketplace is open to the public starting today, although only a few people will be allowed to buy or trade at first. According to reports, Sanchan Saxena, the exchange’s VP of product, took to Twitter to announce the Beta version going live.

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In October, the exchange platform introduced a marketplace waitlist, which received more than 1.5 million sign-ups. According to the site, only a limited number of clients will be able to utilise the beta marketplace at first, based on their position on the waitlist.

On the marketplace, beta testers will be able to create a profile and purchase and sell NFTs. They can use exchange’s Wallet or MetaMask, or any other self-custody wallet. For a limited period, transaction fees will not be charged, but will eventually impose fees in accordance with industry standards, according to the exchange.

For the time being, Coinbase NFT only supports Ethereum-based NFTs and ether payments. The marketplace will eventually connect other blockchains, according to Saxena, and complete fiat on-ramps will be arriving shortly.

In terms of gas prices, Coinbase stated that it has teamed up with 0x Protocol to optimize transactions for cheaper costs. Users will be able to buy NFTs using credit cards, as the exchange platform revealed earlier this year. At the time, the company worked with Mastercard to allow consumers to purchase NFTs using their credit cards.

Coinbase NFT marketplace to permit social engagement

The exchange platform claims that their NFT marketplace would allow communities to interact as well as purchase and trade NFTs. Coinbase NFT intends to use this community-building function to differentiate itself from competitors like OpenSea and LooksRare.

Coinbase has joined the ranks of other cryptocurrency exchanges in introducing an NFT market. Binance, FTX, and Okcoin have all recently created similar exchanges. However, Saxena believes that Coinbase NFT will be the favoured destination for users due to its ease of use as a primary platform for buying and selling cryptocurrency.

Coinbase Halts Crypto Payment Services in India Soon After Launch

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Coinbase, the largest crypto exchange in the United States, has stopped accepting payments through the United Payments Interface (UPI) on its website for Indian consumers just three days after launching in the subcontinent.

The National Payment Corporation of India (NPCI) manages the UPI payment system, which supports buy orders on Coinbase’s India services.

For Indian consumers, the exchange has changed its payment method information on its website, advising them to use Immediate Payment Service (IMP) to make sell orders.

The Reserve Bank of India (RBI) has a separate branch under the Ministry of Finance called the National Payments Corporation of India (NPCI).

Did Coinbase enter the Indian market at the wrong time?

The world’s largest crypto exchange, which announced its debut in India with a big-bang event in Bengaluru on April 7, came under fire from the National Payments Corporation of India (NPCI).

The NPCI supervises UPI, and the company has stated that customers will be able to buy cryptocurrencies via UPI. Coinbase contacted the NPCI after the UPI operator said that it “is not aware of any crypto exchange using UPI,” according to an industry source.

After the explanation, Coinbase contacted NPCI. However, it is irrelevant because crypto is plainly not legal in India.

According to reports, following the NPCI’s explanation, banks were left with little choice except to close accounts that facilitated crypto-related payments.

Other Indian crypto exchanges, on the other hand, continue to accept UPI-based transactions through their applications.

The Reserve Bank of India has expressed worries about cryptocurrency and has suggested that it should be outlawed in many situations.

As a result, aggregators and banks have been advised not to engage with crypto exchanges, according to several sources. However, because the business operates in a legal grey area, crypto exchanges have been permitted to continue operating in India.

Mobikwik, a fintech company that facilitated bitcoin purchases through its wallet, has shut down the service due to regulatory uncertainties. Mobikwik was one of India’s most popular e-wallets for crypto transactions.

Meanwhile, while Coinbase’s much-anticipated debut has been marred by controversy, its creator Brian Armstrong has had many meetings in India to advocate for cryptocurrency. During his journey to India, he met with Amitabh Kant, the CEO of the Niti Aayog, to discuss crypto and blockchain technology.