One of the world’s largest cryptocurrency exchanges, Coinbase, is beta testing a new subscription-based service that would offer its members perks, such as fee-free trading. It stands to impact not only the cryptoeconomy, but people–and businesses–worldwide. However, the strategic genius of the steadfast startup turned $100 billion dollar company, isn’t isolated to its success in radically–and repeatedly–tearing down walls. It’s how it does so, using one simple strategy that’s so mundane the world’s most innovative tend to be blind to it.
Following the news of its new subscription-based service, speculation surrounds Coinbase One, with some arguing that its purpose is to simply better compete with Robinhood, which already offers a subscription service, Robinhood Gold. However, there is a major difference between the two subscription services.
Coinbase One, in its current beta form, offers an account protection feature in addition to the elimination of trading fees (though spread fees still apply) in lieu of subscription fees. With Coinbase One, members could be reimbursed up to $1 million in the case of hacked accounts and stolen funds.
In a market that has been met with much distrust by the risk-averse, it has grown tremendously in just over a decade. But early adopters are naturally the bulk of its consumer base. Meaning, there remains a tremendous amount of opportunity to attract and acquire late adopters, who make up the vast majority of the public.
By offering account protection, Coinbase is essentially offering insurance–just as traditional financial institutions do. This is a major step that helps to stabilize the crypto world, bridge the gap between worlds, instill trust, and lower the barriers to entry for the public at large. And this isn’t isolated to the crypoeconomy, and its particular growth.
It is a universal truth across markets, industries, and nations that customer acquisition and product adoption requires a degree of familiarity. In fact, it’s the strategy Apple uses to enter new markets and it’s how Microsoft dethroned Apple. To capture more of a potential market, even the most innovative companies pursuing radical change, must bake in some traditional ingredients to make the product feel at least slightly familiar.
The company’s mission is to increase economic freedom, which it outlines its plan to achieve by providing everyone with access to financial services that can help empower them. Everyone being the keyword. So far, the cryptoeconomy has, not surprisingly, been fraught with the world’s wealthiest–or those who have enough disposable money for high-risk gambling investments.
This target audience was vital to the success of birthing cryptocurrency and building the market. But as it grows, and as companies like Coinbase progress towards their mission, they need to find ways to better reach a wider audience, and connect with more of the general public.
By taking a traditional approach to financial management, complete with the insurance and the peace of mind that affords, the walls will lower and more will get involved with cryptocurrency. In doing so successfully, Coinbase will not only make strides towards its goal, but will prove that the cryptoeconomy is not only possible but present.