Coinbase Crypto Company To Utilize Hundreds Of Millions In Funding To ‘Fix Bitcoin’
Bitcoin has been having trouble this year and not just in the form of stagnating in value. Interestingly enough, Coinbase exchange is interested in using its new funding round, which has gathered a whopping $8 billion, to resolve bitcoin’s issues.
Of course, bitcoin’s decline in value has appeared in countless headlines these past few months and many altcoins have also disappeared in the process.
As a result, investors and traders have become quite nervous. According to some, the decline in price is a symptom of a larger issue and it is one that Coinbase is ready to address with its new funding round. In addition to resolving bitcoin’s issues, Coinbase is also looking to “accelerate the adoption of cryptocurrencies and digital assets.”
Coinbase’s valuation has enabled it to become one of the highest-value startups in the United States. Since August 2017, the platform’s valuation has reached $1.6 billion. Further, the funding of $300 million means that in total, the platform has raised $525 million. Such figures have enabled the platform to reach a higher valuation that messaging application Slack and Instacart, an online grocery delivery company.
According to Asiff Hirji, Coinbase’s COO, “We see tremendous promise in crypto to build the next generation phase of the internet (often referred to as Wb 3), which has the power to put control back into he hands of consumers, unleash new era of innovation, and offer greater access to economic opportunities to more people around the world.”
In addition to improving bitcoin, Coinbase is interested in using its funds to promote global expansion, enhancing the number of cryptocurrencies that its platform is able to offer, and providing financial institutions into bitcoin’s realm. To be successful, Coinbase is also looking to developing its own infrastructure between fiat and crypto in regulated markets worldwide. It is also interested in adding features and crypto assets to custody offerings.
In terms of bitcoin, even though it has not been faring well in the market lately, various financial institutions, including Goldman Sachs, have started offering bitcoin products and services. Unfortunately, many have yet to firmly materialize and worse yet, the SEC is still determining whether it will approve a bitcoin exchange-traded fund.
On a bright note, this year saw the establishment of Bakkt, which is supported by popular companies such as Starbucks, Microsoft, and Boston Consulting Group. Bakkt is set to begin trading futures on December 12.
Those in the cryptocurrency and bitcoin sector have been quite surprised with Coinbase’s latest impressive funding round. The platform has been praised for being able to bring large tech investors and venture capitalists into the cryptocurrency space. Tiger Global Management led the funding round, while Y Combinator Continuity, Wellington Management, and Andreessen Horowitz, and Polychain all participated.
Hirji added, “Coinbase is and will remain, a crypto-first company. We see Coinbase’s growth as validation that the ecosystem will continue to grow in size, influence and impact – ultimately ushering in a more open financial system for the world.”