Bitcoin wallet and brokerage Coinbase is looking to boost business through a referral program and the promotion of a lesser-known feature.
The company is rewarding clients $25 in bitcoin for each new user they bring to the platform who spends at least $100. Previous promotions awarded smaller sums.
The move raises the question of how much business the startup is getting through its brokerage service. Coinbase charges a 1% fee, so if the referred client spends the minimum $100, the company gives up $24 for the chance of gaining long-term business and building up the Bitcoin ecosystem.
Why Ethereum Needs Layer 2 Solutions More Than EverGo to article >>
For customers based in Europe or the UK, the bonuses are €25 and £25, respectively. The referral program is administered through customized links.
Coinbase is also pushing its recurring buy/sell feature, redesigning it to make it easier to find and use. It noted how such a feature can naturally hedge against exchange rate risk. When purchases are spread over time, the average price paid per bitcoin is much more likely to be closer to the current market value.
The promotions come as the leading startup looks to generate ROI for its investors, who have poured in $106 million to date. It may also be looking to reignite interest during bitcoin’s latest rally.