Not a tulip anymore: Coinbase valued at $8 billion
According to recode.net, Coinbase, the startup at the center of the crypto fashion, currently is in conversations with Tiger Global, an investment firm founded in 2011, and its existing shareholders for an investment of up to $500 million.
As commented by analyst, investor, and blockchain writer Joseph Young
Quite spectacular that Coinbase, the world's largest fiat to crypto exchange, quadrupled its valuation from $1.6 billion to $8 billion within 1 year in a bear market.
It shows investors and venture capital firms really believe in the long-term growth of the crypto market.
— Joseph Young (@iamjosephyoung) October 3, 2018
The total valuation at $8 billion puts it in the list of one of the highest privately valued companies in the US. Coinbase’s most recent private appraisal was at $1.6 billion, according to investors who added to its $100 million funding round last year.
Phillip Nunn CEO of UK based Wealth Chain Capital, also called ““Microsoft of crypto”:
#Coinbase is in negotiations to give it a valuation of $8 BILLION…
They've only been around 5 minutes 🙂
I bet it'll be $80 Billion even quicker. They're making really smart moves.
— Phillip Nunn 🚀 (@PhillipNunnUK) October 3, 2018
Notwithstanding the tense dip in value in some of the platform’s cryptocurrencies this year, Coinbase keeps earning money literally out of thin air, every single time a trade is made on the exchange. And it’s not insignificant amounts, either: Coinbase charges up to a 1.99% fee per trade. The company reportedly earned $1bn in revenues in 2017 and was also profitable in 2018.
And it keeps going: lately, the team on-boarded a crowd of talent from traditional financial organizations as well as big-name tech companies like Amazon, Facebook, Microsoft, and Google. Including Chris Dodds, a member of the board at Charles Schwab, that joined the exchange’s board to add to the Coinbase’s expansion.
Earlier in September Coinbase has announced it will add a new feature, named Coinbase Bundles, that will enable users to buy a weighted basket of the five cryptos it lists — Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ethereum Classic. That will mostly serve as a beginner pack for casual investors; instead of having to choose what digital assets to purchase, they can buy a “basket” of them, with the cryptos weighted by market capitalization at the time of buying. Bundles begin at $25 (and €25 or £25 for consumers in Europe and the UK, respectively). These moves will likely open up the platform’s ecosystem to a much broader investor base.
Even though the value of Bitcoin has fallen more than 50% this year and other cryptocurrencies such as Ripple and Ether performed far more inferior and had dropped by 76% and 65 % respectively, slowly, but surely it’s been proven that crypto is not a tulip, bubble or any of that anymore.
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