In this article, we are going to discuss coinbase‘s recent move to a new office in San Francisco (Hi neighbor), the current exchange industry, and Brian’s position on the 2018 bear market.
Nothing should be considered investment or financial advice. Enjoy the ride.
Crypto Exchange Industry
There is about to be a huge market gap once Binance fully blocks U.S. traders in September. Coupled with this, Circle and Poloniex have also decided to move their companies to Bermuda due to regulatory uncertainty in the United States districts. Even companies that allow U.S. investors will still bar certain states from participating, namely New York. With the growing pressure on exchanges to conform or leave, exchanges that stay are soon to explode with new users searching for liquidity.
The first on the list will clearly be Coinbase, one of the largest U.S. based exchanges left on the market. Coinbase is a premier exchange with one of the most widely used crypto to fiat and fiat to crypto trading pair systems. Most recently, the company decided to move to a new office in San Francisco preparing for the upcoming bull market cycle that should spark in the next few years. The entire process took over 18 months for the move which means this has been in the works for a while.
The previous bull run definitely left an impact on the Coinbase team, and made them resolve to build a bigger and better office for their surging company. In addition, Coinbase has over 1 million customers which means there is no rooms for error anymore. With the rest of the exchanges leaving the U.S. market, all the focus for success will be on this company during the next surge in the market. Failure is not an option.
Bear Markets Are Good for Crypto
Previously, Brian Armstrong, the CEO of Coinbase, stated that the bear market was actually a good thing for the industry. The bear market gave companies time to adjust and build infrastructure for the coming cycles. Entering into the 2017 bull run, the growth in the industry was exponential and exchanges could not keep up. Coinbase is taking this new methodology literally by opening up a new office, adding new coins to their platform, hiring a slew of engineers, and building out new networks and regulatory focused partnerships.
Efficiency will be key moving forward for the crypto industry. As the market grows, mistakes and platform crashes will become less acceptable and tolerated. Last market cycle just about every exchange had to completely close sign ups and registrations for new accounts due to the lack of staff and accessibility. Not to mention the platform crashes prevented investors from capitalizing on trades during high volume days resulting in negative user experiences. Although, if these problems are fixed during the bear market to make new users have a better experience in the future, it will be good for the whole industry.
In addition to internal growth, the bear market cleanses the pool of assets and projects separating the long-term companies from the get rich quick schemes thinning the market. Any project that did not survive the most recent bear market did not do a very good job of reserving funds and anticipating the volatility of cryptocurrency. Cleansing the market of older projects continually makes room for new and better projects to come to the top of the investment charts and push adoption to new all time highs.