Coinbase Executive Refers To Latest $300 Million Investment As Savings For A ‘Rainy Day’
You have probably heard that Coinbase, the largest crypto exchange in the United States, which is now valued at more than $8 billion USD, recently had a Series E funding round. Now, Coinbase’s vice president of corporate and business development, Emilie Choi, has affirmed that the $300 million that the company was able to get was for a “rainy day”.
The Series E investment round was led by investors like Polychain and Tiger Global Management. Polychain is headed by a former Coinbase employee, Olaf Carlson Wee. Choi affirmed to the media that it was an opportunity and that the money did not need to be raised but it was anyway.
She affirmed that this “money for a rainy day” was important in case the company ever needed it one day to act on an opportunity (or to face a crisis, but she did not say that). This money will possibly be important in 2019 as the company is looking to expand next year.
The company has recently listed Circle’s stablecoin (USDC) on the platform but it is already planning to expand to other countries and offer dozens of new tokens.
By adding assets, the company intends to become more attractive to investors as its growth is not as big as companies with a more diversified portfolio like Binance. Because of this, privacy coins and stablecoins are important for the plans of the company in the future and will “naturally emerge” with time.
Choi has also affirmed that she did not want to “close the door” on any type of investment, so Initial Coin Offerings (ICOs) were not completely off the table though there were no plans for doing it now since the company was mostly focused on adding international rails right now.
The Series E funding round is not yet 100% complete. Some venture capitalists will still invest some money in the company but the right amount is not 100% decided yet.
Even with a dramatic fall in the number of its users, Coinbase seems to be going strong now. The company’s volume has fallen 80% according to a research made by Diar but the Coinbase name remains to be strong in the market. With its revenues tanking since 2017, Coinbase shows how bullish they are by getting such a high investment. They are betting everything in the future of cryptos.
The company is focusing on expanding overseas to the United Kingdom and European jurisdictions. With this money for the “long game”, it looks like Coinbase’s plans for 2018 are highly ambitious.
Asia is another target of the company, especially Japan, which is already very regulated and it is one of the main targets of the company for the expansion.