Coinbase, the world’s second-largest cryptocurrency exchange, is set to revolutionize the industry with the launch of its groundbreaking subscription service, Coinbase One. This innovative offering aims to retain users and bolster its recurring revenue streams amidst a challenging bearish market in the crypto economy.
Initially introduced in beta during the fall of 2021, Coinbase One is now going public and will be available in the United States, United Kingdom, Germany, and Ireland. However, this is just the beginning, as Coinbase plans to expand the service to an additional 31 European countries shortly.
The subscription service encompasses a range of exciting features designed to enhance the user experience. These include the elimination of trading charges, more substantial staking rewards, round-the-clock customer support, and the convenience of pre-filed tax return documents. According to Phil McDonnell, senior director of product management at Coinbase, these added benefits aim to build a longer-lasting and more fruitful relationship with customers, creating a win-win situation for both parties.
Traditionally, Coinbase has relied heavily on trading fees as a significant revenue source, particularly during the bullish market periods. However, with the prolonged crypto winter, the company recognizes the importance of diversifying its revenue streams and exploring new avenues for growth.
Coinbase One Introduces Exciting New Benefits
Coinbase displays a remarkable lack of concern towards the predatory regulatory environment in the U.S. as it introduces its latest subscription service, Coinbase One.
Yesterday marked the end of the beta phase for Coinbase One, which was previously accessible solely to U.S. customers. However, Coinbase announced on Thursday that the subscription service has officially exited beta and now provides an array of new features.
Coinbase One, the subscription service offered by Coinbase, provides numerous advantages, including zero trading fees, a dedicated support team, enhanced staking rewards, and exclusive benefits from partners such as Messari and CoinTracker. Subscribing to Coinbase One costs $29.99 per month.
Additionally, Coinbase has expanded the availability of its subscription service to customers in the U.K., Germany, and Ireland. The company plans to extend the offering of Coinbase One to a total of 35 countries worldwide.
The news harmed Coinbase’s stock, as COIN closed down 1.28% on Thursday, as reported by Yahoo! Finance. Currently, in the pre-market, the stock is trading at $60.43.
“In the past, it was very transactional,” explains McDonnell. “Customers would come in, make trades, pay a fee, and that was the extent of the relationship. But during the bull market, we realized the need to encourage customers to stay with us. That was the inspiration behind Coinbase One—to establish a deeper and more enduring connection with our users.”
This strategic shift appears to be yielding promising results. In the first quarter of 2023, Coinbase witnessed an astonishing 138% surge in subscription and services revenue, reaching a staggering $361.7 million compared to $152 million during the same period the previous year.
Looking at the bigger picture, subscription, and services revenues skyrocketed over 17 times, surging from less than $50 million in 2020 to an impressive $793 million in 2022, as reported in the company’s Q4 2022 shareholder letter.
Coinbase’s groundbreaking subscription service, Coinbase One, aims to revolutionize the crypto industry by providing users with a range of exciting benefits while diversifying the company’s revenue streams. Despite a challenging market, Coinbase is expanding the service internationally, signaling its commitment to long-lasting customer relationships. However, the news harmed Coinbase’s stock.