Can the early success of major crypto exchanges propel them to winning the broader consumer finance market?submitted by mickhagen to genesisblockhq [link] [comments]
This is the first part of Crypto Banking Wars — a new series that examines what crypto-native company is most likely to become the bank of the future. Who is best positioned to reach mainstream adoption in consumer finance?
While crypto allows the world to get rid of banks, a bank will still very much be necessary for this powerful technology to reach the masses. We believe a crypto-native company, like Genesis Block, will become the bank of the future.
In an earlier series, Crypto-Powered, we laid out arguments for why crypto-native companies have a huge edge in the market. When you consider both the broad spectrum of financial use-cases and the enormous value unlocked through these DeFi protocols, you can see just how big of an unfair advantage blockchain tech becomes for companies who truly understand and leverage it. Traditional banks and fintech unicorns simply won’t be able to keep up.
The power players of consumer finance in the 21st century will be crypto-native companies who build with blockchain technology at their core.The crypto landscape is still nascent. We’re still very much in the fragmented, unbundled phase of the industry lifecycle. Beyond what Genesis Block is doing, there are signs of other companies slowly starting to bundle financial services into what could be an all-in-one bank replacement.
So the key question that this series hopes to answer:
Which crypto-native company will successfully become the bank of the future?We obviously think Genesis Block is well-positioned to win. But we certainly aren’t the only game in town. In this series, we’ll be doing an analysis of who is most capable of thwarting our efforts. We’ll look at categories like crypto exchanges, crypto wallets, centralized lending & borrowing services, and crypto debit card companies. Each category will have its own dedicated post.
Today we’re analyzing big crypto exchanges. The two companies we’ll focus on today are Coinbase (biggest American exchange) and Binance (biggest global exchange). They are the top two exchanges in terms of Bitcoin trading volume. They are in pole position to winning this market — they have a huge existing userbase and strong financial resources.
Will Coinbase or Binance become the bank of the future? Can their early success propel them to winning the broader consumer finance market? Is their growth too far ahead for anyone else to catch up? Let’s dive in.
BinanceThe most formidable exchange on the global stage is Binance (Crunchbase). All signs suggest they have significantly more users and a stronger balance sheet than Coinbase. No other exchange is executing as aggressively and relentlessly as Binance is. The cadence at which they are shipping and launching new products is nothing short of impressive. As Tushar Jain from Multicoin argues, Binance is Blitzscaling.
Here are some of the products that they’ve launched in the last 18 months. Only a few are announced but still pre-launch.
Can they create a cohesive & united product experience?
Binance WeaknessesBinance is strong, but they do have a few major weaknesses that could slow them down.
Binance Wrap UpI don’t believe Binance is likely to succeed with a homegrown product aimed at the consumer finance market. Their current product — which is focused heavily on professional traders and speculators — is unlikely to become the bank of the future. If they wanted to enter the broader consumer market, I believe it’s much more likely that they will acquire a company that is getting early traction. They are not afraid to make acquisitions (Trust, JEX, WazirX, DappReview, BxB, CoinMarketCap, Swipe).
However, never count CZ out. He is a hustler. Binance is executing so aggressively and relentlessly that they will always be on the shortlist of major contenders.
CoinbaseThe crypto-native company that I believe is more likely to become the bank of the future is Coinbase (crunchbase). Their dominance in America could serve as a springboard to winning the West (Binance has a stronger foothold in Asia). Coinbase has more than 30M users. Their exchange business is a money-printing machine. They have a solid reputation as it relates to compliance and working with regulators. Their CEO is a longtime member of the crypto community. They are rumored to be going public soon.
Coinbase StrengthsLet’s look at what makes them strong and a likely contender for winning the broader consumer finance market.
Coinbase WeaknessesLet’s now look at some things that could hold them back.
Coinbase Wrap UpAt Genesis Block, we‘re proud to be working with Coinbase. They are a fantastic company. However, I don’t believe that they’ll succeed in building their own product for the broader consumer finance market. While they have incredible design, there are no signs that they are focused on or capable of internally building this type of product.
Similar to Binance, I think it’s far more likely that Coinbase acquires a promising young startup with strong growth.
Honorable MentionsOther US-based exchanges worth mentioning are Kraken, Gemini, and Bittrex. So far we’ve seen very few signs that any of them will aggressively attack broader consumer finance. Most are going in the way of Binance — listing more assets and adding more pro tools like margin and futures trading. And many, like Coinbase, are trying to attract more institutional customers. For example, Gemini with their custody product.
Wrap UpCoinbase and Binance have huge war chests and massive reach. For that alone, they should always be considered threats to Genesis Block. However, their products are very, very different than the product we’re building. And their approach is very different as well. They are trying to educate and onboard people into crypto. At Genesis Block, we believe the masses shouldn’t need to know or care about it. We did an entire series about this, Spreading Crypto.
Most everyone needs banking — whether it be to borrow, spend, invest, earn interest, etc. Not everyone needs a crypto exchange. For non-crypto consumers (the mass market), the differences between a bank and a crypto exchange are immense. Companies like Binance and Coinbase make a lot of money on their crypto exchange business. It would be really difficult, gutsy, and risky for any of them to completely change their narrative, messaging, and product to focus on the broader consumer market. I don’t believe they would ever risk biting the hand that feeds them.
In summary, as it relates to a digital bank aimed at the mass market, I believe both Coinbase and Binance are much more likely to acquire a startup in this space than they are to build it themselves. And I think they would want to keep the brand/product distinct and separate from their core crypto exchange business.
So back to the original question, is Coinbase and Binance a threat to Genesis Block? Not really. Not today. But they could be, and for that, we want to stay close to them.
Other Ways to Consume Today's Episode:
Download the app. We're a digital bank that's powered by crypto: https://genesisblock.com/download
|Rate (per day)||0.56||37.31|
Generated with BBoe's Subreddit Stats (Donate)
Source [email protected] can blockchain technology help to monitor water distribution securely 1b5993e51c28. Unlike other blockchains such as Ethereum and Bitcoin, IOTA’s distributed ledger technology allows individual transactions to be stored on the platform which makes it extremely convenient for monitoring work and storing transactions in blocks as is the case with the “Classic ... The purpose of technical analysis using the Wyckoff method is to improve the timing of market operations when a speculative position is formed in anticipation of an upcoming move, where there is a favorable profit/risk ratio to justify opening this position. Trading Ranges (TRs) are the points where previous movement will be stopped and there will be a balance between supply and demand . After months of research and development, global crypto exchanges finally revealed a new magical weapon in their spellbook with the successful casting of the “Initial Exchange Offering” (IEO) spell earlier this year. Mages from the various exchanges and crypto launchpads caused a highly potent global FOMO effect to take hold on cryptocurrency investors, with analysts now expecting the ... Coinbase Holds More Than $11 Billion Of Bitcoin In Cold Storage Tyler Durden Wed, 10/14/2020 - 15:00 Authored by Scott Chipolina via Decrypt.io, Cryptocurrency exchange Coinbase holds approximately 994,904 Bitcoin in cold storage, according to ChainInfo, a Bitcoin analytics platform. By today’s prices, this amounts to over $11 billion. Coinbase offers very high buying limits, with verified customers being able to buy and store up to $50,000 worth of bitcoin daily. Coinbase also offers a Hosted Digital Currency Wallet Service ... With Binance added to your Google Authenticator app, head back to your Binance account on your browser to finalize two-factor authentication setup. To do so, click on "4. Enable Google Authentication" near the upper-right corner of the screen, then input your your 16-digit backup key, login password, and 6-digit 2FA code from Google Authenticator app in the fields provided. Coinbase allows amateurs to go in and out of crypto, or swap one crypto for another, for fees and spreads that come to 2% or so. At archrival Binance, these small-fry speculators would pay 90% less, but they’d be dealing with a firm that mostly inhabits the shadowy world of offshore finance. Malta-based Binance has only a small presence in ... BINANCE:BTCUSDTBINANCE:BTCUSDTPERPCOINBASE:BTCUSD. Short Reverting chart is a good idea when you still bullish [Be water] We offer the best bitcoin private key hack tools to spend non spendable funds in your blockchain wallet with ease. We offer the best bitcoin private key hack tools to spend non spendable funds in your blockchain wallet with ease. Gadget Hacks Discover iOS 14's Best New Features for iPhone WonderHowTo Gadget Hacks Next Reality Null Byte. Gadget Hacks Shop 5G News & Guides Compare Phones ... The Binance Bump is similar to the Coinbase Effect, where cryptos that get listed on Coinbase always rally, at least so far. Coinbase is the largest exchange headquartered in the United States, and getting listed on Coinbase makes a crypto easily available for U.S. traders and investors. Ethereum Classic jumped 25% after being listed on Coinbase, 0x spiked 50%, Bitcoin Cash soared 140% ...
[index]          
Become a Patron! - https://www.patreon.com/paceycrypto Join Coinbase to get a Bitcoin Wallet and get 10 dollars worth of BTC for using my link: https://www.c... WATER FASTING: The Complete Guide ... How To Transfer USDC From CoinBase To Binance (Don't Make The Same Mistakes) - Duration: 20:28. Alex Winkler 1,448 views. 20:28. #Binance Podcast🎙Episode ... LET ME KNOW VIA COMMENTS OR MESSAGE OR EMAIL FOR ANY HELP :) ... How to transfer Litecoin or Bitcoin from Coinbase to Binance - Duration: 10:57. Jermaine Ellis 213,788 views. 10:57 . How to use ... RIPPLE XRP-(ELITE) HIDDEN MESSAGES IN THE SIMPSONS AD-DEEP DIVE - Duration: 26:22. ... Why Did Bitcoin Drop, Coinbase Kyber, Binance Fiat & Keep Investing - Duration: 41:17. The Modern Investor ... In this video we are going to take a look at news from around the world of Cryptocurrency along with some altcoins and Bitcoin prices actions. DISCLAIMER The information discussed on the Altcoin ... Crypto exchanges are big business. Binance has quickly become the largest exchange in the world taking a 0.5 to 1% cut on every trade it carries out. As markets develop and more decentralized ... How to buy from Coinbase and send cryptocurrency over to Binance Any more questions feel free to comment or message me. Please Like/ Subscribe. Thanks. Wanna Donate to help my channel? Bitcoin ...