Coinbase reports the value of the assets on its platform (in USD) at the end of every quarter as well as a split of these assets. As of June 30th, 2022, this split was as follows:
– Bitcoin 44%
– Etherium 20%
– Other crypto 29%
– Fiat currency 7%
The value of the assets on the platform has decreased from $278b at the end of 2021 to $96b as of June 30th, 2022. Of course, a large part of this is due to the decrease in cryptocurrency prices.
So, I did a simple exercise to understand whether users have withdrawn assets or not (and if so, how much):
As of December 31st, 2021, there was $111.2b in Bitcoin. Taking into account the price decrease until June 30th, 2022, this would've been equal to $50.5b (assuming no new deposits nor withdrawals). Coinbase reported Bitcoin equal to $42.2b, that's 16% lower than expected and it is a fair estimate of withdrawals.
If I perform the same exercise for Etherium, the outcome is a withdrawal of a bit over 10% of the assets.
I am working on a complete analysis of Coinbase and will publish that tomorrow in a long-format post. However, I know that some of you are familiar with the company and prefer posts in a shorter format.
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