Cost cutting measures are normal across all businesses. At times parts of a business will no longer be generating the required profits and hence, there is a need to kill those parts of the company.
In recent times, Coinbase has been quietly shutting down investment packages that are not generating profits. The crypto exchange has informed its clients, through its FAQ page, that Coinbase Bundles have been deprecated and that all the assets held in the bundles will be redistributed to their respective individual asset wallets for users.
The bundle packages offered by Coinbase were launched in September 2018. The purpose of these packages was to offer traders and investors a simpler method through which they could engage in cryptocurrency buying. Through the packages, investors were offered a weighted package of Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and Litecoin.
At the product launch for the bundles, Coinbase said that the bundles were meant to make buying crypto more convenient and less overwhelming. New investors would have especially found these packages helpful in easing them into the world of crypto trading. Coinbase also launched new asset pages and Coinbase Learn which gave investors detailed information about the digital assets on the exchange.
Cutting the packages should mean that Coinbase hasn’t found them profitable. The combined packages that were meant to ease the process for investors and traders may not have garnered as much interest as expected and therefore, the exchange finds no reason in keeping them. A chart from Coinbase in December 2018 showed that if you put $100 in a Coinbase bundle in 2017, you’d have just about $20 a year later. This offers some explanation as to why the bundles have been discontinued.
Prior to this, Coinbase also closed its cryptocurrency index fund. The institutionally oriented index fund was closed down after the exchange cited a lack of interest in it. This makes the closing of the bundles’ option yet another product offered by the exchange that has failed to reach its intended goals and as a result has been discontinued.
Cryptocurrency trading options
Top digital crypto exchanges are always working towards improving what they offer their clients in a bid to boost trading on their platforms. Crypto trading can be daunting and complex at the beginning and simplifying the trading process may open up the industry to more investors.
In recent weeks, more investors have become interested in crypto trading due to the hype that has returned around Bitcoin in particular. Investors, new and old, are looking to engage in Bitcoin trading as the leading cryptocurrency has been experiencing significant price rises. It will be interesting to see how the closing down of the bundle option Coinbase will affect the trading of Bitcoin on the exchange.