Coinbase Goes Social by Letting Users Tout Crypto Allocations
Coinbase Goes Social by Letting Users Tout Crypto Allocations
(Bloomberg) -- Coinbase Global Inc. is adding a slew of social-networking capabilities, one of which will make it easier for traders to share information about their allocations on platforms such as Instagram and Twitter.
The biggest U.S. cryptocurrency exchange said Friday it’s adding a Share button that will let traders detail what coins they own on social networks. More ways of sharing data about trades are in the works as well, the company said in a blog.
The effort is likely aimed at harnessing word of mouth about crypto investing to attract more users. Coinbase said this week that its monthly transacting users had decreased sequentially in the third quarter. At the same time, the firm boosted its recurring-user forecast for the full year.
Rival exchanges including BitMex have long run leaderboards, showing their most successful traders. Many crypto fans already brag about their successes -- and sometimes bemoan their failures -- on sites like Twitter and Reddit. But the validity of much of the trading data they cite can’t be verified, and the posts don’t always point out which exchange the traders are using.
Social-network shout-outs could prove to be a powerful weapon in the intensifying battle for crypto investors, whose ranks are swelling as fast as the number of companies willing to serve them. Twitter recently said it would let users authenticate nonfungible tokens -- digital art tied to blockchains -- in their profiles. The social site is building out a group focused on crypto and related technologies. Meta Platforms Inc., formerly known as Facebook, is trying out a new crypto wallet for international money transfers, which could also be used for storing NFTs.
The new Coinbase feature would let users share their allocation percentage with close friends privately or publicly on social media. The feature doesn’t share portfolio balances.
Due to debut in the next quarter or two, Coinbase’s upcoming NFT marketplace will have social features as well, the company had said. Users will be able to showcase their NFTs on Coinbase’s site, and let others follow their profile and receive updates.
“We want to empower the cryptoeconomy to share knowledge and information and learn from each other,” Coinbase said in the blog.
©2021 Bloomberg L.P.