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A comment on Coinbase booked $1B in revenue last year, has told hovering VCs to back off. Parent comment

Re:Coinbase booked $1B in revenue last year, has told hoveri... by tomhoward on Monday January 22, 2018 @06:15PM (#16209073)
It wouldn't, according to accounting principles. It would be accounted for as deposits received, with a balancing liability for when the customer makes a purchase or withdrawal.

They would only record revenue when they charge a transaction fee, or any other charge/income that can't be used by/returned to the customer at their discretion. Revenue is only revenue if it doesn't incur a matching liability.

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Re:Coinbase booked $1B in revenue last year, has told hoveri... by aardvark291 on Monday January 22, 2018 @11:01PM (#16210881)
I agree that that's how it should work, but I wouldn't be surprised if Coinbase wasn't completely orthodox in their accounting. Replies below indicate that they may indeed be counting customer deposits as "revenue".
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Re:Coinbase booked $1B in revenue last year, has told hoveri... by sethgecko on Tuesday January 23, 2018 @04:52AM (#16212232)
They have like 20m users, that would mean $50 deposited per users so.. no
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