CoinTracker

Since the launch of Bitcoin in 2009, the crypto industry has grown significantly, indicated by increased active wallets, diversification of crypto transaction types and asset classes, and improved market sentiment. As of March 2024, over 400 million wallets actively hold cryptocurrencies. Despite market volatility, the number of wallets with a positive balance more than quadrupled from January 2018 to March 2024. The number of monthly transacting users grew from 2 million in early 2018 to 8 million in early 2024. In March 2024, Coinbase also reported that customers held $334.7 billion worth of assets, representing a 2.6x increase over the previous year.

Crypto transaction types and asset classes have continued to grow. In 2015, there were 501 cryptocurrencies. In 2020, there were 2.4K, and in 2024 there were 13.2K. Despite market volatility and crypto scams, general interest in cryptocurrency continues to rise. According to a survey from April 2024, millennials and Gen Z are as likely to own cryptocurrency as they are to buy real estate.

Since 2017, the introduction of decentralized finance (DeFi) transactions, stablecoins, non-fungible tokens (NFTs), layer 2 scaling solutions, and cross-chain transactions have also expanded crypto use cases and interest. Crypto asset types have expanded to include crypto ETFs and ETPs, tokenized real-world assets, decentralized autonomous organizations (DAOs), and central bank digital currencies. As of August 2024, the total value locked in DeFi platforms exceeds $100 billion with daily DeFi trading volume averaging $6.9 billion since March 2024.

The introduction of various transaction types and crypto asset classes makes it more difficult for individual crypto owners and participants to track their transactions, coin and token price action, and portfolio performance. To add to this complexity, as of 2024, the IRS has enforced the need to report transactions with digital assets like cryptocurrency and NFTs on tax returns. More than 5 million people were trading crypto between 2014 and 2015, but fewer than 1K taxpayers reported taxable gains in crypto assets on their tax returns in 2022.

Founded in 2017, CoinTracker enables both retail and institutional investors to track their crypto portfolio across more than 500 exchanges and wallets as of November 2024, helping users see their market value, investment performance, and transactions, and prepare taxes. Over time it has continued to expand its offerings with partnerships: in 2022, it partnered with OpenSea and launched an NFT center to help users prepare NFT taxes, and in 2024, it launched a spam center to address growing demand by users to counter spam and phishing.

CoinTracker was founded by Chandan Lodha and Jon Lerner in August 2017.

After studying Chemistry and Physics at Harvard and graduating in 2013, Lodha started his career as an associate product manager at Google. He spent almost four years at Google, working primarily on search, Android, and Google X.

While Lodha worked on small bitcoin projects during college, his first serious foray into cryptocurrency was in 2014 at Google. He worked on and launched a small integration between Coinbase and Google Search that would send users Google noun cards every time they had a transaction. After completing the project, Lodha received “a super small amount of Bitcoin” for his contributions to the project.

When Lodha checked the value of his Bitcoin after a few years in 2017, he was shocked by its growth and developed a stronger interest in cryptocurrency. By the summer of 2017, Lodha had 15 different wallets with different currencies and exchange accounts. In attempting to track and manage his crypto assets, he grew frustrated with fintech tools that were built on traditional finance rails.

Lerner studied computer engineering at the University of Waterloo and graduated in 2010. While at the University of Waterloo, Lerner founded TextNow, a free phone service provider with over 100 million downloads as of November 2024. He served as CTO until 2014 and as a board member until 2021. After graduating in 2014, he worked at Google as a software engineer, working primarily on cameras, photos, assistants, and machine learning until 2017.

Lerner was also an early crypto user who was experimenting with smart contracts and various use cases in decentralized finance. Similarly to Lodha, he found that in using multiple exchanges, he needed a product that could provide an aggregate view of his portfolio, transactions, market value, and return on investment over time.

Ultimately, Lodha and Lerner created CoinTracker to solve their own personal pain points from experience. They each had crypto portfolios on various exchanges and wallets and started tracking their crypto assets by building a spreadsheet. Eventually, the spreadsheet became too complex and had so many formulas that it took two minutes to load. In early September 2017, Lerner built a web app that codified the spreadsheets and posted a link in a few online groups to see if anyone else found it useful. They realized that others shared the same pain points in tracking and their ability to properly account for crypto assets.

In January 2018, Lodha and Lerner joined Y Combinator. In February 2018, Lodha met with Initialized Capital, a VC firm led by Alexis Ohanian, the founder of Reddit and Y Combinator CEO Garry Tan. Tan and Ohanian were immediately taken by CoinTracker’s product — when Lodha met with Tan, “within minutes of explaining what they were doing his eyes lit up and he yelled down the hall 'Alexis, get in here, you need to hear this!' He was sold straight away.” Ohanian tweeted live from their pitch meeting about CoinTracker’s cryptocurrency tax manager feature.

15 minutes after their pitch meeting, to help CoinTracker generate excitement for its tax product, Ohanian let Lodha and Lerner log in to his Twitter account to post their product on ProductHunt. Ultimately, Initialized Capital led a $1.5 million seed round for CoinTracker. Following this, CoinTracker became the third-highest-ranked product in the world during a 24-hour period and acquired hundreds of paying customers. As of January 2024, CoinTracker served more than 2 million users and as of November 2024, CoinTracker has tracked 5% of the global cryptocurrency market and $50 billion worth of crypto assets.

CoinTracker is a cryptocurrency portfolio tracking and tax reporting tool that integrates with crypto exchanges, wallets, and services. It allows users to view all of their crypto holdings in one place and automatically syncs transactions across supported platforms. CoinTracker calculates gains, losses, and other tax-related information based on transaction history, allowing users to comply with tax regulations. It supports multiple types of cryptocurrency transactions, such as trading, staking, and receiving payments, and offers features like cost basis tracking and capital gains reports to streamline tax filing.

Crypto Portfolio Assistant

Source: CoinTracker

CoinTracker's platform lets users see their gains and losses across all assets and provides daily portfolio updates. The visualization tools allow users to understand their portfolio performance over various periods, such as one day, one month, or one year. It also shows users tax-loss harvesting opportunities, allowing them to save on taxes. CoinTracker’s portfolio management suite also includes the ability to see total portfolio value, DeFi support, spam detection, daily portfolio updates, and portfolio tracking.

CoinTracker’s portfolio assistant helps users monitor their crypto portfolio across more than 800 platforms as of November 2024. These platforms include exchanges, wallets, and blockchains. It synchronizes transactions from the connected wallet and exchange accounts like Coinbase, OpenSea, and Binance — enabling real-time portfolio updates. CoinTracker does this by checking transactions on the blockchain for the user’s wallet address. For those who prefer not to connect their accounts to CoinTracker via API, CoinTracker offers manual CSV uploads to sync transaction data to the portfolio assistant.

Crypto Taxes

Source: CoinTracker

The aggregation of a user’s crypto assets provides a natural transition to CoinTracker's tax product, which generates tax forms in minutes. This includes support for complex transactions that typically require a tax advisor, such as airdrops, forks, mining, staking, yield farming, and other crypto transactions.

CoinTracker’s full tax product suite includes tax reports for all years, the ability to download tax forms (8949, Schedule D), TurboTax and HR Block integrations, tax loss harvesting, tax lots breakdown, the ability to change cost basis method by year, ability to exclude staking from the transaction limit, and 24-hour support.

In February 2023, CoinTracker also launched CoinTracker Connect, a white glove support service that connects users to tax professionals or support specialists specifically for crypto tax consulting.

NFT Center

CoinTracker has created a dedicated NFT Center, wherein users with ERC721 and ERC1155 tokens via Opensea can browse their NFTs. In 2022, CoinTracker partnered with Opensea to enable users to prepare NFT taxes. CoinTracker reviews items in the wallet address history to determine what taxes users may owe.

Source: CoinTracker

Spam Center

CoinTracker offers a Spam Center that allows users to manage spam transactions. Users receive an overview of spam transactions automatically flagged by CoinTracker and can verify assets that may or may not be spam. Finally, users can review assets that have been marked or confirmed as spam. As soon as an asset is marked as spam in CoinTracker, it is marked as spam across all wallets and exchanges and is removed from the user’s transaction count.

Source: CoinTracker

DeFi

CoinTracker supports a variety of decentralized exchanges (DEXes) and decentralized apps to help users manage their DeFi transactions as part of their crypto portfolio. It also creates a tax report that reconciles crypto, NFT, and DeFi transactions to save time and effort. DEFI transactions are often more complex and variable than the typical crypto buy or sell transaction. CoinTracker automatically tracks and categorizes these transactions and calculates the tax impact.

Enterprise

CoinTracker’s enterprise product offering aims to help businesses, organizations, crypto foundations, and funds use cryptocurrency to scale their businesses without the pain of managing crypto accounting. Enterprise works ERP software including QuickBooks Online, Oracle NetSuite, Sage Intact, and Xero. Enterprise is ideal for businesses that process over 100 crypto transactions per year or transact in two or more different crypto assets annually.

CoinTracker 2.0

In January 2024, CoinTracker released CoinTracker 2.0, “its most substantial product release in years”, driven by user feedback. CoinTracker 2.0 is centered around improving ease of use, accuracy, and year-round value.

To improve ease of use, CoinTracker 2.0 included the introduction of a spreadsheet-like transactions interface including AI-powered search features, spam resolution, an improved “Add Wallets” flow where users can add all EVM wallets at once, the migration to a single-page application, and automatic sync with TurboTax and H&R Block.

Source: CoinTracker

To improve accuracy, CoinTracker 2.0 has rebuilt its cryptocurrency ingestion pipelines from more than 500 exchanges and wallets and more than 10K cryptocurrencies. It also built a new model that classifies every transaction. On the tax side, CoinTracker 2.0 includes two new tax features.

Users can mark DeFi transactions such as wrapping, staking deposits and withdrawals, and entering and exiting liquidity pools as non-taxable and can select the cost-basis calculation method they want to use to maximize tax savings. CoinTracker 2.0 has also added support for native staking across the highest volume chains and dApps has improved its DeFi activity detection and automatic tagging and has enhanced its support coverage for Coinbase.

To improve year-round value, CoinTracker 2.0 introduced a new pricing model with its launch in January 2024 that charges one annual price covering all CoinTracker offerings of tax calculation, portfolio tracking, and tax reports for all years.

Customer

CoinTracker started as a company that primarily served individual crypto investors with its portfolio and tax products. Its core product offerings, as of November 2024, are still targeted towards serving individual crypto investors and participants. As crypto users begin to participate in more transaction types and invest in a greater variety of cryptocurrencies, they may need tools to help them navigate increasingly complex cryptocurrency tax requirements.

Enterprises also use CoinTracker to manage cryptocurrency assets, streamline tax reporting, and maintain regulatory compliance. For businesses dealing in crypto transactions, CoinTracker offers tools to consolidate portfolios, calculate gains and losses, and generate tax reports, ensuring that companies can track and report on their crypto activities. The platform’s integration with exchanges and wallets helps enterprises keep accurate financial records, automate transaction tracking, and simplify audits.

Market Size

The crypto market has fluctuated greatly since 2021. While 2022 saw a downturn with the global crypto market cap at $795.3 billion in November 2022, crypto has since rebounded. As of November 2024, the total market cap for crypto was at $2.3 trillion.

Source: CoinMarketCap

Despite the cyclical nature of crypto’s market cap, the number of monthly transactions on the Bitcoin network has steadily increased since 2015. In 2015, the number of monthly transactions on the Bitcoin network was around 5 million. As of November 2024, the number of monthly transactions in 2024 on the Bitcoin network is between 10 million and 20 million.

Source: The Block

The global crypto tax software market is expected to be $187.2 million by the end of 2024. It’s expected to surpass $606.1 million by 2034 growing at a CAGR of 12.5%. Ultimately, the growth of the crypto tax software market is dependent on the crypto industry and the potential use-case crypto has to offer.

CoinTracker faces competition from both its portfolio tracking and cryptocurrency tax offerings. Competitors in the joint portfolio tracking and tax service industry seem to start primarily as tax services that have vertically integrated portfolio services into their offerings. Pure portfolio management competitors are typically free and offer more robust visualizations, but lack the simplicity of completing taxes within the same software. Pure tax service competitors tend to target enterprise clients.

Combined Crypto Portfolio Management and Tax Services

Koinly: Koinly is a platform that generates tax reports for crypto trading and related activity automatically. It Integrates with major exchanges such as Coinbase, Binance, Bittrex, and CEX.io, simplifying crypto tax reporting. It was founded in 2018 and is headquartered in London.

Koinly’s product offerings include a portfolio tracker and crypto tax report generation. Koinly’s portfolio tracking and monitoring service allows users to integrate with 25K cryptocurrencies, more than 220 blockchains, more than 420 exchanges, more than 150 wallets, and more than 50 crypto services. Its services also contain more than 11 years' worth of pricing data.

Koinly generates country-specific crypto tax reports for the US, Canada, UK, Australia, Sweden, France, Finland, Denmark, and Switzerland. Koinly is also SOC 1, SOC 2, and ISO certified and offers error reconciliation, allowing users to find and fix issues with their transactions. Additionally, Koinly offers business plans for accountants, with more than 6K accountants using its software as of November 2024.

Koinly’s portfolio tracking product is similar to CoinTracker’s. Koinly differentiates its tax offering from that of CoinTracker by providing country-specific tax reports and more competitive pricing, with its pricing ranging from $0 to $199 per year.

CoinLedger: CoinLedger is primarily a tax reporting software for the cryptocurrency market, claiming to calculate digital assets taxes in minutes. Coinledger was founded in 2018 under a different name, CryptoTrader.Tax. It was started for reasons similar to CoinTracker, wherein the founders aimed to solve problems they faced related to tracking and reporting their crypto taxes. Coinledger has gained traction through partnerships with the MetaMask wallet provider in 2024 and CoinStats in 2023.

CoinLedger prepares a user’s taxes by importing their wallet and exchanges and classifying transactions automatically to apply the appropriate tax treatment. CoinLedger has also launched a free portfolio tracking service, introducing the ability for users to track cost basis and historical prices and view their capital gains and losses. CoinLedger offers a similar user interface to CoinTracker and a similar scale of integrations with the option to upload transactions in a CSV file option as well. CoinTracker has an API integration with one NFT marketplace, OpenSea, similar to CoinTracker, and offers integrations with DeFi exchanges.

CoinLedger offers a bespoke tab for tax-loss harvesting, wherein users can compare their cost-basis for transactions with the current market price to calculate unrealized losses. CoinLedger also has integrations with TurboTax, TaxACT, TaxSlayer, and H&R Block, where users can automatically extract data from CoinLedger tax reports. CoinLedger costs between $49 and $299 per year which is pricier than CoinTracker but offers integrations with more tax software than CoinTracker.

Blockpit: Blockpit offers crypto tax and accounting solutions for individuals and enterprises. Blockpit was founded in 2017 in Austria. It received $10 million in Series A funding in 2021, led by MiddleGame Ventures. In November 2023, Blockpit acquired a company called Accointing in a multi-million dollar deal due to synergies between the two businesses. Accointing users were absorbed into the Blockpit platform. As of November 2024, Blockpit has generated more than 1 million tax reports and has more than 350K customers worldwide.

Blockpit supports country-specific tax calculation for Austria, Belgium, France, Germany, Netherlands, Spain, Switzerland, the UK, and the US and offers general support for crypto tax in more than 100 countries. It offers free portfolio tracking and anonymous signup, smart blockchain imports for more than 250K assets, full support for DeFi and NFTs, and tax support for regulations from the IRS, HMRC, and BMF.

Blockpit also generates tax reports by allowing users to import their transaction history and review their transactions and tax-saving opportunities. It offers many of the same functionalities offered by CoinTracker but has a wider global presence with its ability to generate tax reports for various jurisdictions.

CoinTracking: CoinTracking was founded in 2012 in Munich, Germany. CoinTracking is a crypto portfolio tracker and tax calculator. As of November 2024, it has 1.8 million active users, 25K CPAs, and corporate clients, 15 years of historical data, and coin trends for 32.8K coins. The total value of portfolios on CoinTracker is $41.5 billion.

CoinTracking’s portfolio tracking software shows users a timeline of their transactions, balance by currency, balance by day, trader information, and total coin and account values. CoinTracking offers tax reports for more than 100 countries, 13 tax methods, and tax exports for CPAs.

CoinTracking advertises full-service plans that connect traders with CPAs and enrolled agents in the US who can assist traders with filing taxes. CoinTracking corporate is a product offering for enterprises, allowing businesses to set up accounts for each customer and manage their crypto tax data in a single interface. Enterprise clients include CPAs, fund managers, and tax firms.

CoinTracking’s portfolio tracking interface design is more industrial than CoinTracker’s but offers readily available statistics for users without much manipulation or filtering. CoinTracking’s tax offerings are targeted to both individuals and corporations but offer the advantage of connecting users with CPAs and enrolled agents as needed and more sophisticated tax report offerings.

Kryptos: Kryptos is a crypto portfolio management, tax reporting, and expert tax service. Kryptos was founded in 2020 and is based in Sweden. It has received an undisclosed amount of funding and is backed by Binance Labs, the Swedish Blockchain Association, Gate Labs, RocketX, telos, and INATBA.

Kryptos enables users to auto-sync transactions across more than 100 exchanges and wallets and track gains and losses across more than 22K cryptocurrencies. Kryptos provides NFT and DeFi portfolio management as well. Kryptos offers annual plans ranging from $0 to $249 per year. In its most premium plan, Kryptos includes reporting for all financial years, a DeFi module, an NFT module, and tax loss harvesting support. Kryptos also provides a white-label tax platform for accounting firms and crypto accountants.

Crypto Tax Services

TaxBit: TaxBit is a cryptocurrency tax and accounting software that automates tax calculations and reports on cryptocurrency transactions. Enterprises can link their exchanges and wallets to pull their transactions through their tax engine and auto-generate tax forms. It was founded in 2018 and has raised $253 million in funding as of November 2024. It raised $130 million in Series B, co-led by IVP and Insight Partners, with participation from Tiger Global, Paradigm, and Sapphire Ventures. TaxBit has partnered with the IRS to support crypto tax compliance and accounting. While CoinTracker’s primary focus is serving individual users, TaxBit only serves enterprise customers.

Zenledger: Zenledger is a DeFi, NFT, and crypto tax calculator for individuals and enterprises. Zenledger was founded in 2017 and has raised a total of $25.9 million as of November 2024.

Zenledger tax service includes auto-generated income, gains and losses, and sales reports, a dashboard dedicated to tax loss harvesting, a detailed summary of transactions, tax software integration with TurboTax and TaxAct Direct, an audit trail report, the ability to report cryptocurrency donations, and the ability to report cryptocurrency gifting. Zenledger also generates bespoke reports on crypto income, mining and staking revenue, and end-of-year transaction valuations. Zenledger allows users to file their state and federal taxes in addition to filing taxes for digital assets through their partnership with April.

Zenledger offers three do-it-yourself tax pricing plans ranging from $49 to $399 per year, with the option to file state and federal taxes as well for an additional $30 per year. Zenledger also offers professional crypto tax plans that connect users with a crypto tax professional ranging from $275 to $2.8K per year.

Zenledger also has a regulatory compliance product for financial institutions and enterprises. This tool includes digital asset trade monitoring, digital asset import, real-time accuracy across various digital assets, and reporting and approvals. It partners with exchanges, wallets, and protocols to make crypto taxes easier for users. Zenledger has partnered with Celsius Network, Metamask, BitPay, Dash, and Ledger.

Zenledger offers a more concentrated suite of products than CoinTracker, with a stronger focus on individual and enterprise tax solutions. Zenledger appears to be positioning itself as a “one-stop-shop” for crypto and traditional taxes, aimed towards making the tax process as easy as possible. Zenledger’s partnership with Comply has cemented its entry into the regulatory compliance industry as well for enterprises, serving a different purpose for enterprise customers than CoinTracker’s enterprise offering.

Ledgible: Ledgible is a digital asset software platform for tax information reporting, cost basis, accounting, and tax for enterprise clients. Ledgible was founded in 2016 in the US and raised $20 million in series A funding in June 2022. Ledgible sells four solutions including digital assets data services, digital asset accounting, tax information reporting, and digital assets tax.

Digital assets data services enable users to bridge digital assets and traditional finance, allowing data to be used in wealth management and portfolio management. Ledgible’s digital assets accounting service tracks digital assets and reports on capital gains and losses, transaction downloads, exchange orders, and wallet balances while integrating with general ledger systems like QuickBooks and Xero. The tax information reporting service generates tax forms for digital assets per local and international regulations and offers white-label integration. Ledgible’s tax for professionals product enables professionals to prepare crypto tags for clients and integrate them with professional tax software.

Ledgible’s customers are primarily financial institutions, funds, and fund administrators, digital assets native companies, and accounting professionals. Clients include Intuit, Thomson Reuters, and CCH. Ledgible also offers a tax for individual products, which allows individuals to file their crypto taxes for between $49 and $149 depending on the number of transactions. Ledgible’s diverse product suite is targeted primarily toward enterprise clients, unlike CoinTracker.

Intuit TurboTax: Turbotax was founded in 1984 and is owned by Intuit. Turbotax builds software to help individuals with their taxes. For individuals, Turbotax has “do-it-yourself” software to guide individuals through their taxes and a separate offering wherein an expert can do their taxes. Turbotax also offers tax software for small businesses.

In 2023, TurboTax launched its Investor Center. The Investor Center is a crypto tax software solution providing year-round free crypto tax forms as well as crypto tax and portfolio insights. The investor center allows users to track portfolio performance. The Investor Center is free and separate from Turbotax’s tax filing services. When it comes time to file taxes, users can sync the data from the Investor Center with Turbotax to file their taxes at a cost.

TurboTax offers most of the same features as CoinTracker with a summary of performance, taxes, transactions, and total portfolio value. TurboTax’s portfolio tracker does not track coin prices and it is unclear if TurboTax considers DEFI transactions and NFT value. TurboTax’s crypto tax service holds the advantage of integrating seamlessly with traditional finance taxes, enabling users to complete all of their tax services in one place.

Cryptio: Cryptio is an enterprise accounting, audit, and tax software for digital assets. Cryptio was founded in 2018 and has raised a total of $11.2 million as of November 2024. Cryptio has more than 400 enterprise customers including Myna, Grant Thompson, Acuity, Mazars, and April. Cryptio has also reconciled and closed more than $135 billion worth of books.

Core features included with Cryptio’s product are automated retrieval of transaction history (including DeFi tracking), auto-auditing of transactions, automated labeling and assignment of transactions to accounts, ability to attach invoices to transactions and track future payments, integrations with accounting systems like Xero and Quickbooks, visualization of transaction history, tax loss harvesting guidance, and access to CFOs, accountants, and auditors.

Cryptio’s core customers are exchanges, banks, stablecoins, and accounting firms. As of 2024, Cryptio does not appear to be a key competitor vying to attract CoinTracker’s core user base of individual traders. However, as CoinTracker expands into enterprise products and sales, Cryptio could become a direct competitor.

Lukka: Lukka is a technology and data services provider for middle and back-office crypto asset processing. It was founded in 2014 and has raised $201 million in funding. It raised $110 million in Series E, valuing the company at more than $1.3 billion as of November 2024, led by Marshall Wace, a global alternative asset manager.

Lukka's target customers are funds and fund administrators, traditional financial institutions and banks, crypto native businesses, CPAs and chartered accounts, and government agencies and regulators. Lukka offers an extensive suite of products including enterprise tax software, pricing and market data, crypto benchmarks, crypto sustainability scores, and compliance software.

Fyn: Fyn is a crypto accounting software that helps enterprise and institutional investors manage crypto taxes. Fyn originally started as BearTax and was founded in 2018. Fyn raised $3.2 million in seed funding in 2022 and was acquired by Blu Canary Capital in 2023 for an undisclosed amount.

As of December 2023, Fyn offered data automation, accounting software, and tax software within its enterprise offerings. Fyn differentiated itself through a mobile-first white-label experience and specialized crypto Tax APIs. Fyn supports crypto taxes in more than 25 countries. Fyn also offers a software solution for individuals to calculate the performance of their crypto investments for tax reporting purposes. As of November 2024, Fyn has indicated that its platform is temporarily offline to integrate upgrades.

Portfolio Tracking

The Crypto App: The Crypto App is a mobile app that serves as a coin tracker, portfolio manager, and news delivery platform. It was founded in 2017 and is headquartered in Slovenia. The crypto app offers three plans ranging from $0 to $14.99 per month. The Crypto App updates its intelligence using IntoTheBlock, Messari, TradingView, CryptoCompare, and CoinGecko. It has been downloaded 4.9 million times. The Crypto app is similar to CoinTracker in that it allows users to track and manage their cryptocurrency portfolios, offering features to monitor real-time asset values, transaction history, and portfolio performance across various exchanges and wallets.

CoinMarketCap: CoinMarketCap is a price-tracking website for crypto assets. In April 2020, CoinMarketCap was acquired by Binance. Coinmarketcap was founded in 2013 and was started by Brandon Chez to help people follow crypto’s growth. CoinMarketCap’s mission is to inform, empower, and advance the crypto community.

CoinMarketCap offers visual dashboards used to track cryptocurrencies and exchanges. CoinMarketCap also has a community reminiscent of X, where users can interact with other crypto participants and stay informed on trends. CoinMarketCap has a free portfolio tracker where users can keep track of profits, losses, and valuation via desktop or mobile app.

CoinTracker’s portfolio tracker remains competitive with CoinMarketCap’s portfolio tracker, both offering free options for beginner crypto enthusiasts. CoinMarketCap has chosen to expand its product offerings through other free features like a community and detailed crypto market dashboards, while CoinTracker has monetized its tax services for individual users. While CoinTracker and CoinMarketCap both serve individual users, each platform offers different features that attract unique segments of the target customer population.

CoinGecko: CoinGecko is a cryptocurrency data platform with historical and real-time for cryptocurrencies, exchanges, and NFTs. CoinGecko was founded in 2014 in Singapore to provide access to cryptocurrency data.

CoinGecko offers dashboards visualizing historical cryptocurrency, exchange, and NFT trends through its primary site. CoinGecko also has a portfolio feature that allows users to track their holdings for each coin, manage multiple portfolios, and organize their lists. CoinGecko also has an on-chain tracker called DEX Tracker used to track decentralized exchanges. Similarly to CoinMarketCap, CoinGecko is free for users. CoinGecko is similar to CoinTracker as it provides users with cryptocurrency data, such as prices, market trends, and portfolio tracking, helping users monitor and analyze their digital assets in one place.

CoinStats: CointStats is a crypto tracker that can be used to manage crypto, DeFi, and NFT assets. CoinStats was founded in 2017 and raised $4.4 million in seed funding in April 2022. CoinStats integrates with more than 300 wallets and exchanges, more than 1K DeFi protocols, and more than 20K cryptocurrencies as of November 2024.

CoinStats offers free portfolio tracking for up to 10 portfolios and 20K transactions before paying for premium services which range from $13.99 to $62.91 per month. The CoinStats free plan contains ads, charges swapping feeds, does not notify users of new transactions, and does not provide portfolio performance analytics. In addition to portfolio tracking, CoinStats offers a wallet that can be used to buy, swap, and earn yield on crypto directly through the CoinStats dashboard. In 2023, CoinStats partnered with CoinLedger to streamline crypto taxes.

While the CoinStats free plan may be appropriate for participants just starting in crypto, its features may be limited for more active users. High-activity users may be able to obtain more advanced portfolio tracking functionality for free with other competitors like CoinGecko and CoinMarketCap rather than paying for premium plans with CoinStats. CoinStats is similar to CoinTracker because it enables users to track and manage their cryptocurrency portfolios by syncing with exchanges and wallets, providing real-time insights and analytics on asset performance.

Source: CoinTracker

CoinTracker offers a range of pricing tiers for its services. For its crypto taxes and portfolio tracking services, as of November 2024, it offers a free tier, a base tier at $59 per year, a premium tier at $199 per year, and an ultra tier for $599 per year. CoinTracker released its new pricing structure in January 2024 which was motivated by user feedback to make the pricing model simpler.

Before November 2023, CoinTracker split its portfolio management software and tax software into two separate products. CoinTracker has combined its portfolio tracking and crypto tax services into one subscription plan as of November 2024. Before November 2023, its portfolio management software was separated into pricing tiers based on the number of wallets and was charged every month. CoinTracker’s tax software was segregated into pricing tiers based on the number of transactions and was charged once. As of November 2024, CoinTracker has tiers for its joint portfolio management and tax management product based on the number of transactions per year and charges per year.

Its major costs likely include building integrations between CoinTracker and crypto asset platforms, which allow it to consume APIs to sync an individual's crypto transactions. While enterprise pricing is not publicly available, it is likely determined on a case-by-case basis based on the customer's needs.

Source: CoinTracker

As of November 2024, CoinTracker serves more than 2 million users and 5% of the global cryptocurrency market is tracked on CoinTracker. It has tracked over $50 billion in crypto assets as of November 2024. Throughout its operation, CoinTracker forged partnerships with major exchanges, platforms, and tax service providers. In 2021, CoinTracker partnered with Coinbase. In 2022, it forged several key partnerships with major exchanges, platforms, and tax service providers including TurboTax, Coinbase, and OpenSea. In 2024, CoinTracker entered a partnership with MetaMask.

In December 2022, CoinTracker experienced a data breach that raised concerns amongst its user community. The breach affected 1.5 million CoinTracker users and resulted in the exposure of email addresses. The incident was caused by a breach within SendGrid, Cointracker’s email service provider, which allowed the unauthorized party to potentially access email addresses and send phishing emails to CoinTracker users.

CoinTracker raised a $100 million Series A in January 2022 which valued the company at $1.3 billion. The round was led by Accel, with participation from General Catalyst, Initialized Capital, Y Combinator Continuity, Coinbase Ventures, Intuit Ventures, Kraken Ventures, as well as Claire Hughes Johnson (former Stripe COO), Gokul Rajaram (Coinbase and Pinterest board member), Jeremy Liew (early investor in Affirm and Snapchat), and Alex Bouaziz (Deel CEO).

Prior to its Series A, CoinTracker secured a $1.6 million seed round in October 2019 led by Initialized Capital, with participation from investors like Alexis Ohanian, Garry Tan, and Serena Williams.

Increased Crypto Engagement

Although the crypto market has gone through boom and bust cycles, represented by periods of low cryptocurrency prices and total market cap, consumer interest in cryptocurrency has continued to increase. As of March 2024, over 400 million wallets actively hold cryptocurrency. The number of wallets with a positive balance has more than quadrupled from January 2018 to March 2024.

Source: Chainalysis

Regulatory Legitimization of Crypto

In May 2024, the US House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21). FIT21 establishes the regulatory certainty and consumer protections needed for cryptocurrency and decentralized finance innovation to grow in the United States. In August 2024 where Senate majority leader Chuck Schumer projected that FIT21 would be passed by the Senate by the end of 2024.

IRS Reporting Regulations

In November 2021, the Infrastructure Investment and Jobs Act was passed, requiring all digital asset brokers to report users’ gain and loss information to the IRS. Brokers are defined as “any person that in the ordinary course of a trade or business stands ready to effect sales to be made by others” and may include digital assets platforms (like centralized exchanges), digital asset-hosted wallet providers (crypto wallets offering swap features), digital asset payment processors, stable coin issuers, and real estate middlemen involved in transactions involving cryptocurrency payments.

This requires all taxpayers filing Forms 1040, 1065, or 1120 must indicate whether they sold or received any digital assets including cryptocurrency, NFTs, or stablecoins. The IRS finalized these reporting requirements in June 2024. The regulatory need for crypto participants to keep track of their digital assets more diligently may result in the growth of the crypto tax and portfolio management industries.

Increased Diversification of Crypto Fringe Uses

Since Bitcoin was introduced in 2009, the crypto industry has grown through the diversification of transaction types and asset classes. Diversification of transaction types includes the introduction of decentralized finance (DeFi) transactions, stablecoins, non-fungible tokens (NFTs), layer 2 scaling solutions, and cross-chain transactions.

Novel DeFi protocols include the Maker lending protocol launched in 2017, decentralized exchanges like EtherDelta launched in 2017, peer-to-peer protocols like Uniswap launched in 2018, and liquidity protocols like Sushiswap launched in 2020. As of 2024, the stablecoin market is growing with 27.5 million active users. In 2023, PayPal launched a US dollar stablecoin, in April 2024, crypto announced the launch of a US dollar stablecoin, and in August 2024, Tether announced the launch of a USDT stable coin on the Aptos Blockchain. Ripple also announced partners for its RLUSD stablecoin.

In 2019, the NFT market was valued at $16 billion. In 2023, it was valued at $21.4 billion and is projected to grow at a CAGR of 33.7% as of February 2024. As of October 2023, Atheneum’s Layer-2 networks contained 61% of all transactions, indicating growth in the usage of Layer-2 blockchain protocols. As the number of blockchain protocols has increased, the number of cross-chain transactions has also increased, nearing 2.6 million transactions and a volume of $9.8 billion as of November 2024. Diversifications of asset types include the introduction of Crypto ETFs and ETPs, tokenized real-world assets, decentralized autonomous organizations (DAOs), and central bank digital currencies.

In January 2024, the SEC approved bitcoin ETFs and in May 2024, approved eight Ethereum ETFs. In August 2024, Bitcoin ETF inflow was $20.5 billion. From 2019 to 2020, the number of DAOs grew by 660%, and in April 2023, the total number of DAO governance token holders was 6.9 million. As of March 2024, more than $1 billion worth of US treasury bonds were tokenized on public blockchains, and the market size for tokenized government securities has continued to rise from January 2023 to April 2024. As of April 2023, the Federal Reserve was considering central bank digital currencies as a means to expand safe payment options.

The broad and fast-growing diversification in the types of transactions and assets may make it difficult for crypto participants to keep track of their assets, activity, and taxes without the assistance of software solutions which could be a way for CoinTracker to gain more market share.

Market Volatility

CoinTracker's services are centered around the crypto market, which can be volatile. The crypto market has seen multiple boom and bust cycles in the past decade, which has slowed the growth of crypto and reduced trading activity. As a result, CoinTracker’s usage metrics and other key performance indicators, funding, and growth may be affected by market volatility.

Crypto Scams and Phishing Attacks

In 2023, 324K users were victims of crypto phishing, resulting in $295.5 million stolen crypto assets. The FBI’s online crime report for 2023 found that crypto investment losses in the U.S. grew 53% year over year to $3.9 billion in cryptocurrency losses in 2023. Phishing attacks and scam methods included hacking crypto projects’ front-end websites or their social media accounts to generate traffic to malicious sites, fake airdrops of NFTs or tokens, spam comments on social media, and paid traffic through Google search ads.

75% of Americans who have heard of cryptocurrency are not confident that it is safe or reliable. The proliferation of sophisticated cryptocurrency scams and phishing attacks may continue to erode cryptocurrency perception and willingness to join.

Crypto Energy Costs

Cryptocurrency transactions are computationally and energy-expensive, often requiring specialized computers to run calculations 24 hours a day. Cryptocurrency transactions consume significantly more energy than traditional financial transactions. One Bitcoin transaction’s carbon footprint is equivalent to more than 762K Visa transactions. Crypto mining and data centers together accounted for 2% of world electricity demand in 2022. Bitcoin mining relies heavily on fossil energy sources, with coal accounting for 45% of Bitcoin’s energy supply mix and natural gas accounting for 21%.

Source: S&P Global

In August 2024, the IMF called for a tax of 85% on crypto mining to reduce emissions and in July 2024, the Biden administration proposed a digital asset mining energy tax of 30%. An increase in energy taxes targeted towards crypto miners could lead to the slowdown of crypto mining, which may lead to increases in transaction times, reduced crypto participation, and negative crypto market sentiment. The environmental impact of crypto, particularly the high energy consumption associated with certain blockchain activities, poses a risk to CoinTracker by potentially leading to stricter regulations, reduced adoption, or negative public perception, which could impact the demand for crypto tracking and tax services.

CoinTracker has focused on building portfolio tracking and crypto tax products for its customers who are primarily individual investors and participants in the crypto market. CoinTracker has innovated to adapt to customers' needs as evidenced by its release of an NFT center integrated with OpenSea and its spam center to respond to the growth of crypto phishing and scam attacks. CoinTracker’s core competitors have a primary focus on enterprises and have differentiated themselves with various country-specific tax reporting and accounting and compliance offerings. CoinTracker aims to extend its enterprise product offerings and may diversify its customer pool in doing so. As regulation continues to expand into the cryptocurrency space, CoinTracker may explore more options for product innovation addressing rising user needs.