Crypto’s Falling Prices See Coinbase’s Popularity Decline

Francisco Memoria
  • Coinbase's traffic has been declining since December, when most cryptocurrencies hit their all-time highs.
  • The company's CEO seems to be above the decline, as he claims to use the down cycles to "build a strong foundation," to later on thrive.

Prominent San Francisco-based cryptocurrency exchange Coinbase is reportedly seeing its popularity drop due to the price decline most cryptocurrencies have been enduring. The company’s download rankings have fallen to their lowest among US finance apps since April 2017.

According to Quartz, Coinbase’s app was the top finance app in the US back in December - when most cryptocurrencies hit their all-time highs. Bitcoin, the flagship cryptocurrency, came close to $20,000 at the time, but has since declined to about $6,300 at press time, according to CryptoCompare data.

Coinbase, which recently added support for GBP deposits and withdrawals, saw its app fall to 40th place in the June download rankings, seemingly affected by the market’s bearish trend. As Quartz points out, users may still access it via its website, which according to SimilarWeb also saw traffic plunge.

Per the website’s statistics, Coinbase’s traffic plunged from 126 million monthly visits in January, to about 28 million in June.

traffic overview Coinbase.png

The company has been building services that may affect its overall traffic in the past few months. After saying goodbye to its Global Digital Asset Exchange (GDAX) and rebranding it into Coinbase Pro, which launched to little fanfare, the San Francisco-based startup launched the Coinbase Index Fund, which gives US accredited investors exposure to digital assets listed on Coinbase Pro.

Coinbase is reportedly valued at $8 billion, making it one of the most valuable companies in the cryptosphere behind Bitmain, which was valued at $12 billion in a funding round. It makes money by charging transaction fees and made over $1 billion in revenue last year, Quartz repots.

The decline hasn’t exclusively been affecting Coinbase, however, as most cryptocurrency exchanges have seen traffic decline on their websites. A few exceptions include leading crypto exchange Binance, and controversial exchange FCoin, which launched a new revenue model called “trans-fee mining.”

Coinbase’s co-founder and chief executive officer Brian Armstrong has last month revealed he isn’t affected by the bear market, and presumably by declining traffic, as it uses the “down cycles to build a strong foundation,” so as to thrive when the bullish run comes.

Coinbase’s problems may not just be related to the bear market, however, as various companies have launched competing platforms. Square’s Cash app has recently started letting users buy and sell bitcoin without charging fees, and made $200,000. Stock trading app Robinhood has also launched Robinhood Crypto, allowing its millions of users to buy and sell cryptocurrencies without dealing with fees.

Those Banned From Facebook May Not Be Able to Use Its Cryptocurrency Libra

Facebook’s two days of congressional hearings on the social media giant’s cryptocurrency ambitions seemingly revealed that those who have been banned from Facebook may not have access to Libra.

During the congressional hearing Facebook had to answer some tough questions, and one of them came from Representative Sean Duffy, which asked the company’s cryptocurrency head, David Marcus, who’ll have access to Libra.

The Congressman initially asked Marcus who could use the cryptocurrency, to which Calibra’s CEO answered: “anyone that can open a Calibra account, that can go through KYC [know-your-customer checks] in countries where we can operate.”

Duffy then referenced two individuals banned from Facebook for violating its community guidelines, Louis Farrakhan and Milo Yiannopoulo, and asked whether they’ll be able to use the social media giant’s cryptocurrency.

Marcus ended up replying he doesn’t “know yet,” after seeing Duffy hold a $20 bill and ask hin who can use it. His point was that cash doesn’t discriminate, and that anyone who can hold it can use it.

While throughout the hearing Marcus tried to point out the company will follow appropriate regulations and comply with lawmakers, Duffy responded that a proper answer would be “as long as you abide by the law, you can use Libra.” The fact he didn’t get this answer, Duffy said, gave him “great pause.”

Speaking to The Daily Beast Elka Looks, a Facebook spokeswoman, clarified Marcus addressed the Congressman’s concerns later on in the hearing. She stated:

For Libra, anyone who is engaging in lawful activity will be able to transact on the network. Facebook will have no say. For Calibra, there is no policy in place yet, but we will share it when it is closer to being finalized.

The news outlet adds that Calibra, Facebook’s wallet to send, receive, and hold Libra, doesn’t yet have final terms of service or a privacy policy. All of this means that those who’ve been banned on Facebook may not have access to its cryptocurrency.

As CryptoGlobe covered, Congressman Warren Davidson implied during the hearings Facebook’s crypto is a ‘shitcoin’ as it doesn’t have some of the properties bitcoin has. The Congressman made it clear bitcoin has no central authority that can censor transactions or dilute its value, while Libra has the Libbra Association.