In 2017, Bitcoin was able to reach an all-time high of near $20K. Who would’ve imagined that it started that year at around $1,000? With its meteoric rise, it has captured the attention of people who are looking to earn a quick profit from Bitcoin mania. However, fast forward a year later, things are now calmer. In fact, for months, Bitcoin has been trading just around the $6,200 to $6,500 range. There are also the likes of Mike Novogratz who even commented that Bitcoin may have already bottomed.
Now, a lot of people have lost their money from Bitcoin and cryptocurrencies in general especially when 2018 entered. Regulatory changes were responsible for the bearish market. Even Bitcoin miners today are being questioned whether or not the activity is still profitable for them. These days, given the bearish market and the cutthroat industry, only large-scale mining firms are now making enough.
Coinbase’s $8 Billion Valuation After a Round of Funding
As for the popular crypto exchange Coinbase, it is now valued at $8 billion despite a bearish market. It was able to raise capital after another mega funding round.
Tiger Global Management has invested $300 million. The reason behind the investment is to “accelerate the adoption of cryptocurrencies and digital assets” according to the company.
There were also other investors including Y Combinator Continuity, Wellington Management, Polychain, and Adreessen Horowitz.
To give you an idea how big Coinbase is now, it now has a higher valuation than the $7.1 billion Slack and $7.6 billion Instacart. This valuation has already been reported in early October.
What Does it Mean for the Industry?
There is no denying that the crypto market has been struggling the entire year. However, for Coinbase, it was able to stay afloat and even grow thanks to the funding and support of Silicon Valley venture capital. In August 2017, the company was valued at $1.6 billion thanks to the funding of IVP, Spark Capital, Greylock Partners, and Battery Ventures.
Coinbase has big dreams for the industry. According to Dan Romero, the company’s vice president, the goal is to become the Google of crypto. And why not? It has become the poster child for the industry today.
Preparing for Institutional Investors?
There is quite an anticipation for the entry of institutional investors. In fact, earlier this year, Coinbase launched products mainly for professional investors. Coinbase Custody, for instance, has been approved by the regulators. It is approved by the New York Department of Financial Services.
It has also partnered with Circle. Here, it made its own stablecoin. That was a brave move on the part of Coinbase considering that Tether’s stablecoin has been on the receiving end of controversies. There were those who claim that Tether has been used to manipulate the price of Bitcoin. But for Coinbase, the reason for having a stablecoin is to “bring more institutional funds into the space”.
Could the dream to become crypto’s Google become a reality for Coinbase? Given the direction that they are going for, things are looking bright for them. They are anticipating regarding the possible outcomes for the industry.