The Coin base (Nasdaq: Coins) Digital Asset Exchange rolls in cash when Memecoins hover and crash, but its dependence on tool -free casino chips is not good for its long -term future.
Figures released February 13 show Coinbase’s revenue during the last three months of 2024 came to just under $ 2.3 billion, an increase of 88% from its Q3 Revenue and an increase of 140% from F4-23. Coinbase booked a profit in almost $ 1.3 billion during the fourth quarter, almost 5X its final line during the same quarter one year before.
For the year as a whole, revenue doubled more than $ 6.3 billion, while the profit came just under $ 2.6 billion, an exponential improvement compared to $ 95 million profits booked by the company in 2023.
The figures require a little asterisk, as Coinbase adopted new accounting rules under Q1-24 which made it possible to register land-to market gains in the value of the digital assets in the balance sheet. So even though the figures remain impressive, percentage winnings are a little apple-to-the-art.
When we dig deeper, we find Q4 transaction revenue of $ 1.55 billion, almost triple Q3’s sum, which reflects the voltage that seized the overall “crypto” market as then candidate Donald Trump embraced digital assets and then proceeded to win the White House and portrayed one radically different approaches for digital assets at the federal government level.
Consumer transaction revenue amounted to $ 1.35 billion at volume of $ 94 billion, both figures almost tripled their third quarter total. Institutional trade showed similar improvements in the quarter in the quarter, with a $ 141.3 million income on volume of $ 345 billion.
Proceeds from transactions on coinbase’s Ethereum ‘Layer 2’ Network Base was $ 67.6 million, a maximum time, although it won at a slightly slower rate than consumer/institutional categories. To run adoption, Coinbase has effectively subsidized transaction fees on the base, where it remains the only “sequencer” management transactions, despite vague promises to allow other sequencers “over time” which, like all Mirages, never seems to be getting closer.
Coinbase’s monthly transaction users (MTU) calculated 9.7 million during the fourth quarter, up from 7 million during the fourth quarter of 2023. For the year as a whole, the gains were a little more modest and increased from 1 million to 8.4 million. For Posten, Coinbase Views ‘Transaction’ through an extremely broad filter, including customers who passively receive payments from assets that are posted on the platform, as well as those who simply withdraw money.
Coinbase’s category “Stablecoin Revenue” fell 8.5% quarter to the quarter to $ 226 million. This category is entirely based on USDCthe second largest StableCoin issued by Circle away Coinbase partnership.
Blockchain rewards (aka revenue from staking Ethics To support Ethereums insert property Consensus mechanism) rose $ 39% to $ 215 million. Interest on the government debt gears that Coinbase purchases with the cash provided by staking customers was basically flat to $ 65.7 million, while the revenue from the storage fee increased by more than a third to $ 43 million.
Tool -free tokens now half of the transaction revenue
When it comes to details of what all these Coinbase transactors were up to, BTC Token accounted for 27% (-10 points from Q3) of Q4’s trading volume and 27% (-8 points) transaction revenue. ETH saw its volume share drop five points to 10%, while revenue decreased by 6 points to 10%.
The Tether (USDT) Stablecoin’s The proportion of trade volume was kept stable at 15%. Strangely enough, Coinbase has not yet quoted any similar statistics for USDC, apparently because no one uses it to trade in the exchange.
The category “other crypto assets” increased a substantial 15 points to 48% of the total volume. This category accounted for 49% of transaction revenue, 11 points higher than Q3.
The “other assets” ghost reflects Explosion of tool -free memecoins Issued since last year’s launch of pump.fun token-generating platform. But it also reflects Coinbase’s decision after the election to throw caution to the wind and just start noting tokens as it is likely to know is illegal securities, but with the understanding that Securities and Exchange Commission (Sec) new leadership has decided Executing the rules is someone else’s job.
Interestingly enough, while most memecoins are issued on Soana Networks, revenue from SOL transactions dipped below 10% reporting threshold during the fourth quarter after meeting 11% during the third quarter. At the same time revenue from trade Ripple Labs’ The XRP token hit a share of 14% after he previously failed to cross the 10% threshold.
Coinbase has been Shame For its dependence on tool -free tokens, which is effective, chips in its cryptocino, which lacks any purpose in addition to financial speculation. This opinion is aggravated by CEO Brian Armstrong’s latest proposal for abandon all vetting of tokens and simply list everythingWith a semi -baked promise to clear obvious fraud after the cows have been barned this barn.
Money for nothing and your servers for free?
In spite of its great profit, Coinbase cannot in any way find the funds required to rise Its shaky infrastructure. For the record, Coinbase lost $ 222 million in share-based compensation during the fourth quarter-913 million dollars for the entire year-and expects to issue another $ 206 million during the current quarter. Imagine how much better Coinbase’s user experience would be if its Execs were willing to go three freaking months without sucking on the sweet, sweet compensation skewers.
Looking forward, says Coinbase Q1-25 has started strongly, with transaction revenue that hit $ 750 million during the year until February 11. Investors, who had driven the company’s share price up almost 8.5% before the markets closed on Thursday, appeared underwelmed by Coinbase’s figures and pushes the shares 1.5% in post -retail.
Investors seem to think that despite all Hoopla of US regulatory authorities, in principle abolishes their monitoring responsibility, the recent quarter’s token price controls may have been “baked”.
List each token, take each bet
On the subsequent analyst call, Armstrong was asked about his plans to throw caution to the wind by listing every token that exists, even though he acknowledged that the issue was now “one million symbols per week.” Armstrong rationalized this by comparing it with a Google search that gives 100,000 results for a particular issue, “but you only see the first page.” Yes, and if you click on any of these links means you can’t rent this month, yes, freemmmmmm!
Armstrong revealed Coinbase’s ambitions to become “the primary financial account for many people in the global economy.” In fact, Armstrong has tweeted his company’s resemblance to a traditional bank, claim that its assets under management “would make us 21st largest bank in the United States through total assets and growing.”
In Armstrong’s vision of the future, “You will have a single primary financial account that earns” all financial functions, begins “greater financial freedom for all”, and probably more 133 million dollars mansions For your big friend Bri. Do not keep in mind that all coinbase has to offer are different ways of investing in your cash on an endless filling range of magical beans and/or Digital hat children.
Interestingly, Armstrong seemed to suggest that Coinbase was interested in entering the growing “predictive market” operations carried out by US -based Kalshi and the internationally licensed Poly market. Commodity Futures Trading Commission (CFTC), which has previously corrected the Polymarket, is now under new leadership and has scheduled a meeting To discuss whether US-based operators can participate in pseudo-betting fun.
Masters of the universe with hats in hand
The night before Coinbase released its revenue, Technical Reported that the company “worked with its reentry to India”, the market from which it made an unclear retreat three years ago. Coinbase is reportedly “engaging” with Indian authorities, including Financial Intelligence Unit (FIU), which memorably called Bullshit on Coinbase’s Bluster about its freedom to do what it liked in the country.
2022, Coinbase traveled high, fresh from its Listing on the Nasdaq exchange Last year and harvests all economic benefits with the last speculative bull market. Coinbase, who embraced “move quickly and break things”, coinbase launched its Indian reversing operations with the unfounded claim that local customers could use the state uniform payment interface (UPI) to finance their accounts.
National Payments Corporation of India (NPCI) pressed hard back On this statement, he can force Coinbase to publicly admit that it had not been allowed to use UPI. After starting his Indian adventure with the Faux Pas, it was downhill from there and Coinbase ditched the market quite later that year.
It is unclear when Coinbase can resume its India-facing operations, such as rival exchange Binance did after (a) Pay a penalty of $ 2.2 million For deficiencies against money laundering, and (B) does not yet pay an $ 86 million back tax rules the country’s Directorate-General for GST intelligence permit Binance is guilty.
Whenever it resumes the business, Coinbase will be – or at least, bark be – finding their Ps and Qs, aware that another prospective screw will not be seen charity. Coinbase’s Chief Legal Officer Paul Grewal joined the Board of the US India Board of Directors, where you can be sure that he will adopt a much less strict/privileged tone than he does when discussing US authorities.
While Coinbase released its results during the fourth quarter, Indian Prime Minister Narendra Modi met in the White House with President Trump. Considering tens of millions of dollars that coinbase helped to secure Trump a second term and Armstrongs reported one-on-one talking to TrumpMaybe Donald whispered a word in Modi’s ear when it comes to how generous crypto operators can be when they really want something.
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