What is Coinbase?
Coinbase is the largest cryptocurrency exchange in the US. They allow users to buy and sell crypto as well as send coins between wallets (it is both an exchange and a wallet). Their business model is having users pay small fees for making trades, but now they are introducing a brand new strategy.
Coinbase One
The new service they offer is Coinbase One. It’s basically a paid subscription that enables users to trade without fees (however, they will still have to pay spread fees). Also, it includes features like priority support and account protection feature (up to $1 million). The service is available for a small portion of users for the time being. The company hasn’t told yet, how much Coinbase One subscription will cost.
Will it increase their revenue?
Well, it depends on whether the feedback from users will be positive as it’s in an early stage. For sure, it can provide a much more stable source of revenue compared to users paying fees for each trade. “We are focused on the long-term where we will continue to diversify our offerings” said Alesia Haas CFO of Coinbase. Moreover, it’s a response to their biggest rival which is Robinhood, and their subscription service called Robinhood Gold.
Sources:
https://help.coinbase.com/en/coinbase/getting-started/crypto-education/what-is-coinbase