Bitcoin and cryptocurrencies experienced an incredible price surge at the end of the last year. Indeed, several individuals have seen their investments grow exponentially. But Coinbase, one of the most famous virtual currency platforms has also seen its valuation growth from $1.6 billion dollars to $8 billion in less than a year.
Coinbase Valuation Multiplies
The San Francisco-bases crypto exchange and platform Coinbase, has also seen the effects of the increased interest for the virtual currency market. Valued at $8 billion dollars, the company is following the trend of most cryptocurrency exchanges in the market. Most of them are being really profitable and are growing very fast.
The Nasdaq Inc., has a total valuation of $15 billion dollars. And Coinbase is a relatively new participant in the economy. Of course, these comparisons need to be made carefully due to the fact that the market is not fully regulated and there is no clear framework for these crypto platforms to operate.
Just to mention another case, Binance, one of the most important cryptocurrency exchanges in the market, has reported higher profits than Europe’s leading financial institution, Deutsche Bank. While the European bank registered $146 million dollars’ profit, Binance recorded a profit of $200 million dollars.
At the moment, Binance is the second most important virtual currency exchange in the market by trading volume, handling $2.26 billion dollars in the last 24 hours. At the same time, GDAX, Coinbase exchange, is the 13th most important cryptocurrency exchange by trading volume, with $217 million dollars moved.
We can also mention that Coincheck, the Japanese virtual currency exchange hacked in January, remained profitable even after the attack. The two following months after the hack, the exchange registered $4.5 million dollars in operative income.
Cryptocurrency exchanges are being very profitable, this situation will for sure increase the pressure from tax agencies to regulate the market. During this year we are experiencing how different countries are trying to create better regulations and a more predictable framework for Initial Coin Offerings, digital assets, and related companies.
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