In the past, we’ve reported on Coinbase and its skyrocketing popularity. It became one of the most downloaded apps in the world during the Bitcoin boom, but it appears that user interest in the app has dropped in recent months. Signifying the general decline in Bitcoin hype, Coinbase’s download numbers have fallen to its lowest among US finance apps. This news generally reflects the state of the current digital currency markets, which have been in a steady rate of decline since the start of the year.
Dropping Down the Charts
Coinbase fell to 40th in the download rankings this month, which is its lowest position in the download charts since April 2017. Retail traders are a notoriously fickle bunch – that much is obvious – with it now showing in the performance of Coinbase. In December, Coinbase became one of the leading financial apps in America, as its download numbers jumped massively in the wake of Bitcoin’s price surge. Sadly, it looks like the famous exchange is finally running out of steam.
Facing Customer Fire
While Bitcoin’s price fall has certainly dampened Coinbase’s rise, it’s not the only contributing factor. Coinbase has faced considerable fire recently after a Freedom of Information Act request discovered that 134 pages of complaints had been filed against the company with the SEC. Many of these complaints relate to the company’s inability to handle customer queries. On paper, this issue might seem minor, but it appears that Coinbase has faced both struggle and success since its lightning-quick growth during the close of 2017. Responding to the criticism, a Coinbase spokesperson said, “Consumer demand for our services increased by 40x [in 2017] and we experienced transaction volumes in November and December of that year that grew by 295 percent.” This statement is telling, as Coinbase directly blames the company’s growth for its poor customer service performance.
Defiant in the Face of Adversity
The attitude from Coinbase has been pretty defiant, especially if Coinbase CEO Brian Armstrong’s Twitter feed is anything to go by. He said that the exchange isn’t concerned by the negatives and short-term price dips, believing that it simply rids the market of those that are investing in crypto for the wrong reasons. Speaking honestly, we’re not sure how such an aggressive stance will go down with the casual traders that use Coinbase.
Coinbase is valued at $8 billion, which is $1.6 billion more than this time last year. The exchange has generated huge revenue over the past 12 months, as its transactions have totaled more than $1 billion. Showing that – in spite of criticism – it’s still thinking big picture, Coinbase has recently announced the launch of Coinbase Custody – a new digital asset custodian service. This new custodian solution will be safeguarded through an SEC-compliant and FINRA-member independent broker-dealer. It’s an interesting development, especially when you consider that Coinbase purchased Earn.com in a major market move earlier in the year.
Shaken but not Stirred
Not much can shake Coinbase, as it has been a revelation when it comes to mobile cryptocurrency trading. However, when numbers fall and downloads slow, it does create cause for concern – even if those representing Coinbase say otherwise.