Securing $300 Million In Round E Funding Raises Coinbase’s Valuation To $8 Billion
The recent price stability of Bitcoin and other top cryptos has demonstrated that this market is maturing. Now, there is another news by the biggest name in the crypto ecosystem, Coinbase, that shows that even institutional investors think the same.
We're pleased to announce our latest funding round, led by Tiger Global Management. We plan to accelerate our global expansion and investments in the utility phase of crypto—always working to create a more open financial system for the world. Read more: https://t.co/JzGlMGLjaC
— Coinbase (@coinbase) October 30, 2018
A blog post by Coinbase has confirmed that it just completed its Series E fundraising of $300 million. This means that the largest crypto exchange operator in the western hemisphere is valued at over an astounding $8 billion. The current round was led Tiger Global with a supporting cast of Y Combinator Continuity, Wellington Management, Andreessen Horowitz, Polychain.
This round of funding comes after a Series D fundraising round of $100 million in August 2017. Then it was valued at only $1.6 billion. An increase of 5 folds in valuation in just 14 months has been almost unheard of.
What Does Coinbase Intend to Do With the New Funds?
Coinbase plans to use the newly available funds for Global expansion, offering more crypto assets, developing crypto-based apps and luring established institutions to the crypto ecosystem.
Just in 2018, the company has made efforts to broaden its horizon end consumers to the much needed institutional investors. The new capital will also be used for same.
The firm also said that it aims to diversify globally offering an increasing amount of fiat-to-crypto exchanges services. Binance had done the same going to Malta and offering a variety of trading pairs, which eventually made them the biggest exchange.
Notably, currently, Coinbase trades just a handful of crypto pairs. This is just the company being cautious to not break US security laws. In an effort to be a more global player, the company has to diversify.
Even though Coinbase has been criticized for being too centralized for a decentralized environment like cryptocurrencies, the company has been a blessing for the entire ecosystem as a whole.
The ease of use of their applications have always provided an entry point for beginners and with its global ambitions now, we can be sure that they will be turning a lot more heads towards it.