Crypto in decline (vecteezy photo)
Although Coinbase is far from being the world’s largest crypto exchange – it ranks second in the top ten in terms of trading turnover and daily visitors – it is one of the three oldest exchanges in the field still active, and is considered by any index we could find one of the three most reliable and influential. So, on Wednesday, there was a real panic when its biggest competitor, Binance, announced a move that was expected to hurt active competitors in the US – the largest of which in this country is Coinbase.
The announcement that caused the upheaval was the cancellation of crypto trading fees in the US version of Binance, which operates as an almost separate entity from its international version due to legal restrictions in the US. , USD Coin and Binance USD itself – almost no fees.
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Admittedly, the move is mainly aimed at encouraging currency trading at all costs, as in recent days, with the fall in the value of currencies, market activity has plummeted and threatened to drown Binance and the rest of the stock exchanges under the ice of great skepticism; But in practice, it was expected to attract many Coinbase customers, particularly strong in the US, to switch to a competitor.
As a result, Coinbase shares, traded on the Nasdaq since April 2021, fell 9.7% in Wednesday’s trading, threatening to put the company in an even more severe crisis than is already taking place in the crypto market.
But the very next day, on yesterday’s trading day (Thursday), Coinbase managed to erase Wednesday’s drop and even return to a price higher than Tuesday’s closing price, after announcing a counter-move that is expected to encourage trading activity in it: it launched, for the first time in its history, an option Trade not in cryptocurrency, but in a derivative of cryptocurrency.
This derivative is called “Nano Bitcoin”, and is actually a type of futures contract on Bitcoin. Each bitcoin nano represents one hundred bitcoins, and traders actually bet on the price of the currency over time. The derivative will begin trading on Monday through stock trading companies like Woodbush, which is expected to increase the volume of Coinbase’s turnover – so its stock jumped 13.43% on the Wall Street Stock Exchange.
In addition to this move, the veteran stock exchange has also recently been considering the option of a paid subscription that provides no-trade trading for those who carry out operations with a total volume of up to $ 10,000 per month. At the same time, the second long-standing competitor in the market, FTX, announced last month that its US branch would also allow trading in stocks and derivatives.
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