On Friday, markets fell sharply on news of a new coronavirus variant detected in South Africa. What to expect next?
Coinbase: Time to Believe in Crypto
2021-10-22 • Updated
Coinbase is a secure online platform for buying, selling, transferring, and storing digital currencies. The company calls its mission the creation of an open financial system for the world.
There are several factors, which point to the bright future of the Coinbase company.
Coinbase earns on commissions
The main source of income for the company is commission fees, which traders pay for the crypto assets trading. In Q2, the crypto market dropped, as a result, the volumes dropped as well as many traders left the market. According to the analysts’ predictions, the revenue is going to fall from $1.79B in Q2 to $1.51B in Q3.
Bitcoin trading volumes according to Tradingview
But this situation does not scare investors as the cryptocurrency market has been showing some impressive moves during the past weeks.
News about the first Bitcoin ETF approval by the SEC brought lots of positive into the markets. The next day, the main cryptocurrency broke above its all-time high and reached $67 000. It is an extremely important event for Bitcoin as many social platforms talk about it, and that, in turn, increases the attractiveness of the main cryptocurrency. New users join the market, and the rising volume of transactions means that more operations are carried out every day, which helps crypto platforms to earn more on commissions.
Coinbase makes a partnership with NBA
Coinbase has become an exclusive partner of the National Basketball Association (NBA). According to an NBA press release, Coinbase will advertise on the platforms of the US National Basketball Team, the Women's National Basketball Association, the NBA G-League, and the NBA 2K League.
Partnerships like this play a special role in the formation of a company and attracting new users. We are confident that this partnership will make a special impact on this platform.
Coinbase makes a partnership with Facebook
Facebook has selected Coinbase as the keeper of securities and financial assets for its pilot Novi, a new digital wallet that allows people to send and receive money abroad instantly, securely, and commission-free.
Participants in the Novi Pilot can purchase Pax Dollar (USDP stands for Digital Dollar) through their account, which Novi will keep on deposit with Coinbase Custody. After that, Novi users will be able to instantly transfer USDP to each other.
Digital wallet holders can also take advantage of the Coinbase Custody insurance program, which includes a $320 million anti-commercial crime policy.
This partnership will add another line in the Coinbase inflow report, as the result earnings growth is expected.
After an IPO in May 2021, Coinbase lost 50% of its price, but with the Bitcoin explosion, the stock has already recovered half of this drop. On the chart, you can see Fibonacci levels, which perfectly act as support and resistance levels. At the moment, the price is testing the 0.5 Fibonacci level.
If it closes today's trading session above $304, it will be a good buy signal for this stock. In this case, the closest target will be at $330. The next target locates at $360.
If $304 gets broken, the closest support will be at $280, which is the 0.382 Fibonacci level.
Latest news On September 29, Virgin Galactic announced that the Federal Aviation Administration has approved launches resume after an investigation about why its spaceship veered off course while descending during a July flight with founder Richard…
The company will be reporting its data on Friday. What should you know?
Big changes are coming for ETH As it turned out, it will take some time before the miners of Ethereum, and cryptocurrencies based on the same blockchain stop buying video cards…
Starting on December 3 cryptocurrency crash caused panic on the market. Further Bitcoin movements are foggy, but we can manage to peek behind the crypto market’s curtains and figure out what to do.
What is going on with this energy asset these days, and should we prepare for further falls?