According to Reuters, Coinbase a Californian based crypto exchange made more than 460 million euros in revenue last year 2018.
Reuters established this figure when compared Coinbase’s U.K. revenue exchange which increased by a whopping 20 percent a year ago when contrasted with the previous year of 153 million euros, from the report by the U.K’s corporate registry.
In a correspondence between Coinbase U.K. CEO Zeeshan Feroz and a Reuters reporter, The CEO confirmed that the U.K branch of the business represents “just about a third” of Coinbase net income.
The documents further demonstrate that Coinbase U.K. acquired a net profit of 6.6 million euros ($7.4 million) a year ago.
Furthermore, Reuters also announced that most venture capital firms are pumping quite a lot of funds into the cryptocurrency industry. Notwithstanding, they are still careful about having a direct association with the revolutionary digital currency.
As indicated by a research carried out by PitchBook on behalf of Reuters. In 2019 alone, the cryptocurrency industry has received an investment of close to $850 million. A year ago, the crypto industry was boosted with a record breaking investment of about 2.4 billion dollars by 117 venture capital investment an increment that would further give credence to the emergence of the crypto market.
Earlier this year, Nivaura; a Blockchain startup in the capital markets, received an investment of $20 million from the London Stock Exchange Group. Other significant funding includes one from Microsoft Ventures Capital subsidiary M12 and the Boston Consulting Group, which sponsored a $182.5 million round for Bakkt (digital assets platform) managed by Intercontinental Exchange, the parent organization of the New York Stock Exchange.
Although, the Reuters report also indicated that Venture Capitals have significantly reduced their investment in the crypto market thanks to the dip that occurred in 2018. The numbers showed that investment reduced from $8 million invested in 2018 to the $6.5 million dollars invested so far in 2019.
This represented a huge drop in the valuation of the crypto market which stood at $834 billion in the first quarter of 2018. A drastic plunge of about 66% was witnessed in the overall valuation, with all the major cryptocurrencies losing a significant portion of their value. Bitcoin, for example, suffered a loss of about 50% during that year before its resurgence this year.
Thanks to the plunge, there was significant panic in the crypto market and alt coins also suffered significant losses like Ripple and Ethereum also suffering about 40% losses in the same time frame as reported by CoinMarketCap.
The future is still bright for the crypto industry as it is still touted to reach unprecedented highs in the nearest future.