Coinbase Was Adding 50,000 Users a Day, Says CEO Brian Armstrong

Francisco Memoria
  • Coinbase's CEO has recently revealed its exchange was adding 50,000 users a day last year.
  • He didn't reveal how many it's adding now, but noted the company grows along with bitcoin.

Coinbase, one of the leading cryptocurrency exchanges in the world, was reportedly adding 50,000 users a day last year, when most cryptocurrencies surged to their all-time highs. Per its CEO Brian Armstrong, the company’s growth is accompanying that of the flagship cryptocurrency.

Speaking at the Bloomberg Players Technology Summit in San Francisco, Armstrong revealed the exchange was adding about 500 users a day when it started. After enduring its first crypto bubble, it was adding 5,000, and ended up adding 50,000 per day last year.

While Armstrong didn’t reveal how many users the company is currently adding a day, he noted bitcoin’s price has gone through a series of bubbles, each one reaching a new plateau. While people’s expectations quickly hit “irrational exuberance,” he said, the technology is still developing.

People’s expectations are all over the map, but real-world adoption has been going up.

Brian Armstrong

As for adding new users, Armstrong believes owning a piece of the technology - some bitcoin – will help people learn about it and understand it. The CEO further revealed his cryptocurrency exchange has helped users trade $150 billion worth of crypto last year, and that it now has about 1,000 employees.

During his interview, Armstrong was asked whether Berkshire Hathaway CEO Warren Buffett and JP Morgan CEO Jamie Dimon were wrong about bitcoin. Buffett, as CryptoGlobe covered, called the flagship cryptocurrency “rat poison squared,” while Dimon claimed it was a “fraud.”

Although Dimon later on claimed to regret his comment, Buffett and his lieutenant at Berkshire Hathaway, Charlie Munger, maintained their position comparing it to “turds” and “dementia.”

Per Armstrong, both are wrong about bitcoin, although their positions are understandable as most are initially going to be skeptical about new technologies. Now, however, he believes it’s getting harder to find cryptocurrency skeptics, although he estimated that about 10 percent of cryptos are used in real life.

He noted:

I think it will be quite some time before you cross the street to Starbucks in the U.S. and pay with crypto.

Brian Armstrong

As CryptoGlobe covered, the Intercontinental Exchange’s Bakkt will have Starbucks as its “flagship retailer.” The coffeehouse chain won’t, however accept bitcoin at its stores, as it will be accepting cryptocurrencies converted into US dollars at Bakkt.

Recently Coinbase has been upping its offers to institutional and retail investors. It recently halved its Index fund’s fee from 2% to 1%, to make it more attractive, and added support for new features at its decentralized exchange.

As covered, falling cryptocurrency prices saw the San Francisco-based exchange’s popularity decline. Its app was the top finance app in the US back in December, and fell to 40th place in June, as the flagship cryptocurrency plummeted from a near $20,000 all-time high to about $6,440 at press time, according to CryptoCompare data.

38% of Crypto Exchanges Interact With High-Risk Entities in 25% or More of Their Transactions

Leading cryptoasset data provider CryptoCompare has published an updated version of its cryptocurrency Exchange Benchmark. The report details that 38% of crypto exchanges interact with high-risk entities in 25% or more of their transactions.

According to CryptoCompare’s Exchange Benchmark, interactions with high-risk entities are considered when the cryptoasset data provider is raking exchanges. These interactions are measured according to CipherTrace’s Interaction Risk Score, which profiles transactional risk by “deanonymizing risky entities and illicit activities to identify criminal sources of funds and money laundering exposure.”

CryptoCompare then scores exchanges according to the percentage of transactions conducted with entities deemed high-risk. These include criminals, darknet markets and vendors, gambling projects, malware operators, cryptocurrency mixers, ransomware operators, and OFAC sanctions addresses.

The benchmark details that addresses with up to 25% of transactions conducted with these entities receive some points, but those above said mark receive none. Notably, 38% of cryptoasset exchanges were above it.

Data shared in the report detailed that Top-Tier cryptoasset exchanges, those graded AA to B in the report, interact less with these entities, while Lower-Tier exchanges, those rated C-E, interacted more. While both AA-related exchanges, Coinbase and Gemini, had no interactions with high-risk entities, some of the exchanges with A, BB, and B ratings did.

As CryptoGlobe reported, the Exchange Benchmark also revealed Top-Tier exchanges are gaining market share against Lower-Tier exchanges. It details that top-tier exchanges accounted for 32% of the global volumes in Q4 2019, while in the first quarter of this year they accounted for 36%.

In the second quarter of 2020, the Top-Tier exchanges already accounted for 40% of the global trading volume. In June these exchanges got to a 46% market share. Lower-Tier Exchanges, have seen their share of the space’s total trading volume drop from 68% to 60% in the last three quarters.

Featured image via Pixabay.