Coinbase diversifies its layout to cope with challenges, and its stock price recovery still needs to optimize its profit structure.

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Coinbase's Diversification Strategy and Market Challenges

Since the beginning of this year, Coinbase has shown positive signals in several key metrics, with both its stock price and user activity rebounding. As of June 16, 2025, Coinbase (COIN) stock price has risen to $242.71, more than 60% higher than the low of $151.47 in April 2025. This rebound is partly attributed to COIN's official inclusion in the S&P 500 index in May 2025, marking an increase in its recognition in mainstream financial markets. However, compared to the peak stock price of $342.98 in April 2021, the current stock price is still down about 29%.

![The Attack of Coinbase: A Lavish Sponsorship and Acquisition Paves the Way to Enter the Mainstream Circle via S&P 500](https://img-cdn.gateio.im/webp-social/moments-6095d790b4c3cc9a4951399fe0317516.webp01

Data shows that 1,560 listed institutions have reported holding Coinbase shares, totaling over 120 million shares, including heavyweight investors such as Vanguard and BlackRock. Meanwhile, according to data from a website traffic monitoring agency, Coinbase's active user count reached 34.7 million in May, ranking second in the industry.

However, behind the impressive market performance, there are concerns about Coinbase's profit structure. The 2024 financial report shows that approximately 63% of its revenue comes from transaction fees, making its income extremely reliant on the fluctuations of the cryptocurrency market. In the first quarter of 2025, transaction revenue fell by 19% quarter-on-quarter to $1.3 billion, indicating that market trading volume is under pressure. Additionally, the rapid development of the on-chain ecosystem is also diverting trading volume and user attention, intensifying competitive pressure on centralized exchanges.

![The Attack of Coinbase: Large-scale Token Sponsorship and Acquisition Paving the Way, Entering the Mainstream Circle through S&P 500])https://img-cdn.gateio.im/webp-social/moments-2057157ef9c429d7861e769c03faac6d.webp(

Coinbase has recently faced challenges to its trustworthiness. In May of this year, the company disclosed a serious data breach affecting over 69,000 users, with potential losses reaching hundreds of millions of dollars. At the same time, due to poor stock performance and issues with information disclosure, Coinbase is facing a class action lawsuit, and the U.S. Securities and Exchange Commission is investigating whether it exaggerated user data during its direct listing process in 2021.

To address multiple challenges, Coinbase is seeking diversified growth through product innovation and global strategic布局. In the derivatives market, the company announced the launch of compliant perpetual contract products in the United States and reached an agreement to acquire Deribit, the world's largest cryptocurrency options and perpetual contract platform, for $2.9 billion, significantly enhancing its voice in the cryptocurrency derivatives market.

In the payment sector, Coinbase has partnered with Shopify and Stripe to promote the use of USDC on e-commerce platforms, and has collaborated with American Express to launch the Coinbase One Card, which offers cardholders up to 4% cashback on Bitcoin purchases. This card is exclusively available to Coinbase One subscription users, reinforcing the closed-loop effect of the platform's membership system.

![The Attack of Coinbase: Large-scale Token Sponsorship and Acquisition Pave the Way, Entering the Mainstream Circle Through S&P 500])https://img-cdn.gateio.im/webp-social/moments-ea1cb57deab32b90d353913f697df5aa.webp(

In response to the trend of integration between CEX and DEX, Coinbase has integrated the Base network DEX into its main application, allowing access to hundreds of on-chain assets. The company has also launched cbDOGE and cbXRP tokens on Base, enhancing the chain's competitiveness in the Layer 2 network. For developers, Coinbase has introduced a CDP wallet infrastructure that combines account abstraction with a custody entry.

On the institutional investor side, Coinbase Asset Management has launched the Coinbase Bitcoin Yield Fund (CBYF), providing non-U.S. institutional investors with a comprehensive solution for Bitcoin holdings and on-chain yields.

In terms of global layout, Coinbase is actively seeking a full European crypto business license under the MiCA regulations and has obtained a virtual currency license in New York. The company is also strengthening its political and economic resource integration by bringing in senior political figures to join its advisory board.

![Attack on Coinbase: Large-scale Token Sponsorship and Acquisition Paving the Way, Using S&P 500 to Enter Mainstream Circle])https://img-cdn.gateio.im/webp-social/moments-b7d10f924a50381b1da6dd2b1f16a2ff.webp(

Overall, Coinbase has secured a place in the mainstream financial system with its compliance advantages and market recognition. However, in the face of a complex regulatory environment and intense market competition, the company's ability to effectively address policy risks, optimize its profit structure, and continuously gain user trust will be key challenges for future development.

![Attack on Coinbase: Large-scale token sponsorship and acquisitions pave the way, leveraging the S&P 500 to enter mainstream circles])https://img-cdn.gateio.im/webp-social/moments-e18c6aee0f1aae240c9021061ad34d87.webp(

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OnChainDetectivevip
· 07-16 21:23
typical risk management moves... but their transaction data suggests deeper liquidity issues than they admit
Reply0
HallucinationGrowervip
· 07-16 21:18
There are opportunities to play with the short-term market of CB.
View OriginalReply0
SatoshiHeirvip
· 07-16 21:16
Based on the technical origin, Coinbase's move is truly counterproductive. Undoubtedly, Layer 2 is the way to go.
View OriginalReply0
AirdropHunterWangvip
· 07-16 21:09
It's another trap to get COIN.
View OriginalReply0
GasFeeCrybabyvip
· 07-16 21:09
Diversification? It's just a trap.
View OriginalReply0
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