As the crypto markets continue with their prolonged correction, Coinbase CEO Brian Armstrong has provided some insight into the behaviour of users on his own trading platform in 2018 which may surprise – and provide some reassurance – for close followers of the cryptocurrency phenomenon.
Speaking at Bloomberg’s Players Technology Summit in San Francisco yesterday, Armstrong pointed out that in 2017 the Coinbase platform had signed up, on average, 50,000 users per day but that these figures were more or less still being replicated in today’s market conditions.
Internet Bubble Comparison
When asked about the continuing volatility associated with Bitcoin’s price evolution, Armstrong also answered that “…this technology is going through a series of corrections and bubbles…there have been four or five of them now,” resulting from “irrational exuberance” where “expectations are away of actual value”, and just like the original dotcom bubble “expectations have been all over the map … but general adoption has steadily been increasing.”
Reiterating his comparison with the internet tech bubble, Armstrong also pointed out that Coinbase – currently the US’ leading cryptocurrency trading platform – researches each potential candidate for his own platform against a range of criteria which places primacy on assessing “real world use-case”.
Coinbase has arguably emerged as a leader in recent months for the general adoption of cryptocurrencies themselves, with the platform now focusing its business strategy on the creation of custodial services for institutional investors.
Some industry analysts see the move as key for the wider promotion of cryptocurrencies, particularly in terms of increased investment for crypto-currency start-ups within traditional financial circles.