COINBASE ONE: THE SUBSCRIPTION SERVICE NOW LIVE
Coinbase, the cryptocurrency exchange company, has officially launched its subscription service, Coinbase One, in the US, UK, Germany, and Ireland, with plans to roll out in 31 more countries in the coming months. The program was available in beta since November 2021, but now it brings benefits like no trading fees (under a per-user trading volume limit), boosted staking rewards, and more.
THE NEW RELATIONSHIP BETWEEN COINBASE AND ITS CUSTOMERS
Coinbase’s senior director of product management, Phil McDonnell, stated that when the company started, it was all about trading, and the relationship with the customers was transactional. However, the company wanted customers to stay, particularly when there was a decrease in active traders due to the weaker crypto market. That’s why the subscription service could help with more recurring revenue streams and provide customers with more reasons to stick around.
COINBASE’S STRUGGLE WITH REGULATORY BATTLES
The launch of Coinbase One can also help the company with the expenses related to the regulatory battles Coinbase is facing, which can be expensive. The New York State Department of Financial Services (NYDFS) fined the company a $50 million penalty for anti-money laundering laws violations, plus a requirement to spend another $50 million on compliance. Additionally, Coinbase is currently under investigation by the US Securities and Exchange Commission for alleged securities lawbreaking.
COINBASE INCREDIBLE GROWTH
Despite the regulatory battles, Coinbase’s subscription and services revenue saw 138 percent growth in the first quarter of this year, earning $361.7 million compared to $152 million the previous year. The company is hopeful to continue this growth trend as it expands its subscription service across the world.