Coinbase Acquires Blockchain Analytics Intelligence Company Neutrino For Undisclosed Price
Coinbase, the largest crypto exchange based in the United States, has recently decided to acquire Neutrino, a blockchain analytics startup company. This is seen by the company as a wider push of the company to be able to offer more diversified assets globally.
The company has made the announcement of the acquisition on its blog. The quantity of money that was used by buy Neutrino was not disclosed on the blog post nor by the crypto media.
Varun Srinivasan, the director of engineering and product of the company, has affirmed that this is an important move in order to work with regulators and agencies from many countries. Also, Neutrino will be very important for the companies to decide what are the new tokens which are being more valuable in the market now or just gaining traction.
At the moment, Neutrino has eight employees. They will all move to Coinbase’s London office this week. However, the company will continue to be its own thing and to serve its own external clients. According to Srinivasan, Coinbase will now be able to research new assets to be listed while the company can also identify all activity that sounds illegal.
It is important to contextualize the decision of the company at this moment. Neutrino was bought at the best possible time. Not only is Coinbase planning to expand its business in 2019, but the company also has seen a compliance incident.
As you may remember, just a few weeks ago an Israeli blockchain company called Whitestream has determined that a Coinbase account was being used to funnel donations from the Palestinian military-political group Hamas, deemed a terrorist organization by the United States government.
To be a U. S.-based company and indirectly helping organizations deemed as terrorists by your government is definitely a bad move, so a company like Neutrino comes at a perfect time to help the company to solve these issues.
Srinivasan has talked more about it, emphasizing how important it is to be compliant with all regions and that the company will enhance the efforts in this way this year. The CEO of Neutrino, Giancarlo Russo, has affirmed that it was an important milestone for innovation in Italy, the country where Neutrino comes from.
According to him, the company has decided to join Coinbase because the missions of both companies were completely aligned and they both want to create an open financial world in the crypto space.
Part of the reason why Neutrino was Coinbase’s target was that it was going much faster than its competitors, mostly Chainalysis and Whitestream, in adding non-Bitcoin tokens to their list. The company has done a good job in the European market and Coinbase wants to bring it to the U.S.
Blockchain Analytics: An Important Sector
The sector of blockchain analytics is growing as an important part of the blockchain industry. Jonathan Levy, the co-founder of Chainalysis, the main rival of Neutrino, has raised a $30 million USD Series B funding round recently, in order to open a new office in London.
Most of these companies are having a good time right now and they are seeing an increase in demand. As the sector gets more competitive, it is expected that these companies will be sought even more than now.
Now, Coinbase will start to acquire more companies this year, as it was already expected last year. Neutrino was one of the key companies that will be vital for Coinbase’s success this year, so this acquisition was an important part of the 2019 road map for Coinbase.