The Bitcoin Foundation, the Ethereum Project, the Litecoin Foundation they all looked at their coins and wondered if there will be a time where the market they have created would reach the same heights as the likes of Google, Apple, Facebook, and everyone else in Silicon Valley. Coinbase just did that while proving that the crypto revolution is here to stay.
The cryptocurrency startup based in the heart of Silicon Valley, San Francisco, California, raised $100 million in their Series D funding. This latest funding round has made Coinbase worth $1.6 billion, and earned the company the esteemed and prestigious moniker of “unicorn”. No other exchange or crypto-related business had managed to break the $1 billion mark. So it is quite the remarkable accomplishment that the US based cryptocurrency exchange became the first one to achieve this feat.
Forbes reported that the funding round was led by IVP. The company is known for having a keen eye in their investments. Over the 300 companies that the VC has decided to support, 106 have gone public. The firm is also involved in Netflix, Slack, Snap, Twitter, and Dropbox. Moreover, Forbes also reported that Spark Capital was another one of the big names involved during the D series round, along with Greylock Partners, Battery Ventures, Section 32 and Draper Associates.
Coinbase is, by far, the most respected and professional institution when it comes to crypto trading in the US and abroad. The money that this latest funding round brought will be used to expand operations. Business Insider reports that the company is looking to expand to the financial heart of America, New York City. The reason for this move is to open a Global Digital Asset Exchange (GDAX) there.
It is a very sensible move for the crypto exchange giant that is labelled as the best US exchanged currently available. The Wall Street Journal sets the Bitcoins (BTC) – US dollar (USD) pairing as the highest trading pairing on any coin exchange in American soil. That fact alone justifies setting up shop next to Wall Street.
However, Coinbase’s plans do not end there. The company is also looking into developing its latest idea, Toshi. As reported by the WSJ and Forbes it is an Ethereum-based browser that makes it possible for apps to pay consumers for watching or tapping on an advertisement. It is an interesting idea with great potential.
Not Everything is Glitter and Gold
For all the good fortune that the startup has experienced, there has also been a set of complaints. Users have seen prolonged delays in their transactions, customer service tickets that go unanswered, as well as problems with the signup process. More recently Coinbase came under fire after announcing their refusal to support Bitcoin Cash (BCH) and denying users with access to funds. The retaliation for that decision saw Coinbase lose 50% of all the BTC that were kept by the company, as reported by Forbes.
It was a costly move that forced Coinbase to reassess its position and provide access to Bitcoin Cash as early as 2018. Coinbase is only five years old, but as the WSJ said it is incredibly profitable. We can’t wait to see what the unicorn has in store for us next.
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