Coinbase Values Itself at $8 Billion in Earn.com Acquisition
- The company continues to expand despite rising competition.
Popular cryptocurrency exchange platform Coinbase recently valued itself at $8 billion in an acquisition deal that included its common shares, according to Recode. The latest figure is quite an increase from the company’s August VC valuation of $1.6 billion.
Coinbase acquired Bitcoin startup Earn.com for what is rumored to have been the equivalent of roughly $100 million. While Earn’s investors reportedly settled on being paid in cash for the acquisition, some members of its management team took payment in the form of stock packages. Allegedly among them was former Earn CEO (now Coinbase CTO) Balaji Srinivasan.
“Thanks to the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term, anywhere there’s a phone, there’s a job.” — @earndotcom https://t.co/N9WBFxp4Zv
— Mohsen Khalikhali (@Mossibat) April 17, 2018
The firm’s final valuation will be confirmed once the company completes a 409a valuation, a formal report detailing the value of a company’s common stock.
The 500% increase in valuation has likely been caused by the veritable explosion of the cryptosphere that has taken place over the past several months. Despite the fact that the cryptocurrency markets still haven’t managed to come anywhere close to their December peak, the cryptosphere is still booming, so much so that Coinbase reported $1 billion in profits last year.
However, the competition is growing increasingly fierce; apps like Revolut and Robinhood are gaining stronger footholds with lower fees and equally (if not more) easy-to-use interfaces. Revolut, which is based in the UK, was recently valued at $1.7 billion, raising $250 million in its Series C round.
That’s nothing to shake a stick at, especially since Coinbase hasn’t managed to shake off its reputation for high fees and horrendously slow customer service in some important corners of the internet. However, Coinbase is still charging ahead with a number of new products and services, including Coinbase Custody, Coinbase Ventures, Coinbase Asset Management, and an index fund.
Announcing Coinbase Index Fundhttps://t.co/ca98IKrzUv
— Coinbase (@coinbase) March 6, 2018
Popular cryptocurrency exchange platform Coinbase recently valued itself at $8 billion in an acquisition deal that included its common shares, according to Recode. The latest figure is quite an increase from the company’s August VC valuation of $1.6 billion.
Coinbase acquired Bitcoin startup Earn.com for what is rumored to have been the equivalent of roughly $100 million. While Earn’s investors reportedly settled on being paid in cash for the acquisition, some members of its management team took payment in the form of stock packages. Allegedly among them was former Earn CEO (now Coinbase CTO) Balaji Srinivasan.
“Thanks to the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term, anywhere there’s a phone, there’s a job.” — @earndotcom https://t.co/N9WBFxp4Zv
— Mohsen Khalikhali (@Mossibat) April 17, 2018
The firm’s final valuation will be confirmed once the company completes a 409a valuation, a formal report detailing the value of a company’s common stock.
The 500% increase in valuation has likely been caused by the veritable explosion of the cryptosphere that has taken place over the past several months. Despite the fact that the cryptocurrency markets still haven’t managed to come anywhere close to their December peak, the cryptosphere is still booming, so much so that Coinbase reported $1 billion in profits last year.
However, the competition is growing increasingly fierce; apps like Revolut and Robinhood are gaining stronger footholds with lower fees and equally (if not more) easy-to-use interfaces. Revolut, which is based in the UK, was recently valued at $1.7 billion, raising $250 million in its Series C round.
That’s nothing to shake a stick at, especially since Coinbase hasn’t managed to shake off its reputation for high fees and horrendously slow customer service in some important corners of the internet. However, Coinbase is still charging ahead with a number of new products and services, including Coinbase Custody, Coinbase Ventures, Coinbase Asset Management, and an index fund.
Announcing Coinbase Index Fundhttps://t.co/ca98IKrzUv
— Coinbase (@coinbase) March 6, 2018