Coinbase Delivered Incredible Quarter Reports, But Values Remain Uncertain: What to Expect?

Cryptocurrency giant Coinbase announced its results for the first fiscal quarter of 2021, before being listed directly on the Nasdaq on April 14. The company attributed its parabolic growth and explosions to Bitcoin's scorching rally. While the leading cryptocurrency re-registered $ 60,000, its annual return on investment (ROI) is 900% – an unprecedented level of growth for an asset class with a market capitalization of over $ 1 trillion. “We have seen that high crypto prices have always increased user activity and transaction volume on our platform. Coinbase CEO Alesia Haas said in 2021, we expect significant growth driven by proceeds from transactions and oversight given the growing interest of institutions in the crypto asset class, ”said Coinbase CEO Alesia Haas. Coinbase Exceeds Expectations in All Big Earnings Statistics With the crypto trend escalating this year, most cryptocurrency exchanges have had large entries in transaction volume and users. Coinbase's transaction volume per BusinessWire increased 276% to $ 335 billion and quarterly revenue to $ 1.8 billion. Net income for the first quarter was estimated to be between $ 730 million and $ 800 million. The number of active users on the platform increased from 2.8 million in the 4th quarter of 2020 to 6.1 million in the first quarter of 2021. Verified users (those who passed KYC procedures) increased by 30% to 56 million. Coming to the exchange's balance sheet, Coinbase saw its crypto assets increase by 1200% from $ 17 billion to $ 223 billion. Considering that the combined market cap of the crypto market was $ 2 trillion a long time ago, this would put Coinbase's shares at 11% of the total market share. Market value remains uncertain; Bulls and skeptics are getting heavy. Despite Coinbase's incredible first quarter results, analysts and investors are divided over the valuation of the crypto exchange. According to FTX “ Coinbase '' pre-public offering contract Read more

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