Coinbase chief executive Brian Armstrong said the cryptocurrency exchange would offer dogecoin trading within six to eight weeks, as the company warned it faced increasing competition from platforms – alternative forms of negotiation.
Armstrong’s comments came during Coinbase’s first earnings call since its direct registration in April, making it the first major public cryptocurrency exchange in the United States.
Coinbase reported net profit of $ 771 million on total revenue of $ 1.8 billion in the first three months of this year, more than a three-fold increase from the previous quarter, so that trading volumes have skyrocketed with the growing popularity of bitcoin and other digital assets. The numbers are in line with estimates provided by Coinbase in April.
Cryptocurrency traders urged Coinbase to allow trading dogecoin, a token that started out as a joke but has skyrocketed to a market cap of $ 55 billion during the recent frenzy.
Cryptocurrency was in the spotlight this weekend when Tesla CEO Elon Musk, who has made several references to dogecoin on Twitter this year, referenced it again on the TV show. Saturday Night Live – although he conceded that the token was a “scramble”.
Coinbase has been slower than some overseas-based rivals to add cryptocurrencies to its platform, analysts said, citing cybersecurity and regulatory concerns.
In a letter to shareholders, Coinbase said its competitors “support certain crypto assets that are experiencing significant transaction volume and market capitalization growth that we are not currently supporting.”
“There’s no question that we need to speed up the process by which we review assets and add them to the site,” Armstrong said. “We’re going to quickly be in a world where there are so many of them that we won’t be able to keep pace if we don’t speed up this process.
Coinbase said its latest trading volumes have kept pace with the record highs seen in the first quarter. The company recorded more than $ 1.5 billion in transaction revenue in the first quarter, much of it from retail customers.
Coinbase shares are down 38% from a high on its first day of trading, giving the company a market cap of $ 52.8 billion at the end of Thursday.
#techFT brings you news, commentary and analysis on the big companies, technologies and issues shaping this fastest moving industries from specialists around the world. Click here to get #techFT to your inbox.