Pros of Coinbase

Pros of Coinbase

1. Coinbase has made it easy and convenient for users to get onboard the crypto space via the COINBASE Wallet. This wallet serves as a great hot wallet especially since Coinbase expanded its Coinbase Pay service that empower users to fund their wallets from bank accounts. Additionally, it provided support for Ethereum DApps in its Coinbase Wallet. Users can now learn about unfamiliar tokens and blockchains by taking part in its quests. So far, a proactive Coinbase Wallet user can learn about the Access Protocol, Optimism, Base and The Graph while earning some crypto at the same time. Hence, Coinbase Waller reduces the friction users face when buying crypto and enhances their knowledge about upcoming cryptocurrencies. (Reference 1)
2. Coinbase is the first major crypto IPO. It became a listed company on April 14, 2021. (Reference 2). Since it is a public company, it is audited quarterly (Reference 1), which provides users resssurance that it is handling their funds properly without risk of misappropriation. This is particularly because Coinbase Custody is one of the world’s top global custodians of crypto funds. Approximately 10% of the crypto market cap is managed by Coinbase Custody; this includes all of Grayscale Trusts’ assets (largest publicly traded crypto securities). ARKHAM Investigation recently dug out that Grayscale Ethereum Trust is actually the second largest ETH entity globally with $5B in ETH spread over 500+ wallets. (Reference 3). Being scrutinised and held accountable as a publicly traded company instils confidence among retail investors - that their funds are SAFU. As it is, it has published its proof of reserves with liabilities as well as a third party audit. (Reference 4).
3. Aside from Coinbase Pay, Coinbase also streamlined the process of buying and withdrawing crypto by collaborating with PayPal. (Reference 5). Available in Germany and the United Kingdom, this service allows investors in these two countries to withdraw their Coinbase balances to their PayPal accounts. Thus, they can expect to get their money faster than wire transfers. Coinbase is looking to expand this service to other European Union countries.
4. Coinbase also plays a proactive role in advocating for regulatory clarity. In April 2023, it sued the SEC because the latter has not responded to its July 2022 petition on whether the crypto industry could be governed by existing securities rule-making processes. Taking a leadership role and pushing for transparency of crypto regulation would alleviate the worries of many retail investors about how they should proceed with investing in the digital assets space. (Reference 6)

Reference 1:

https://messari.io/crypto-theses-for-2023

Reference 2:

https://www.cnbc.com/amp/2021/04/14/coinbase-to-debut-on-nasdaq-in-direct-listing.html

Reference 3:

https://cryptoslate.com/grayscale-revealed-as-second-largest-bitcoin-entity-despite-confidentiality-efforts/?amp=1

Reference 4:

https://cryptobriefing.com/coinbase-paypal-partnership-simplifies-crypto-buying-in-germany-and-the-uk/

Reference 5:

https://www.blockchaincenter.net/proof-of-reserves/

Reference 6:

https://www.cnbc.com/2023/04/24/coinbase-sues-sec-after-months-of-silence-from-federal-regulator.html