The cryptocurrency market has been having a rough time for a while now. Ever since the market took a hit in January, it hasn’t fully recovered from the bears. For the past few weeks, however, the price of cryptocurrencies have been relatively stable. This doesn’t mean they have been entirely bullish. As you know, the valuation of CoinBase and other cryptocurrency exchange trading platforms has always been linked to the market. For this reason, the value of these exchanges don’t do so well in a bear market. However, during this difficult time, CoinBase, one of the largest cryptocurrency trading platforms in the world was able to raise $300 million worth of funds in an Series E round. This brought the market valuation of the exchange up to $8 billion.
CoinBase And The Industry
CoinBase intends to use the money generated from this investment round to fund the adoption of digital assets and cryptocurrencies according to the comments by the COO of the platform Asiff Hirji. The fact that CoinBase is growing steadily amid this current market conditions has given other businesses and investors confidence in the industry.
Bitcoin (BTC) Price Today – BTC / USD
On Tuesday, CoinBase announced that it has raised $300 million from fundraising. This amount didn’t just take its valuation up to $8 billion but it also made it one of the highest valued exchanges in the US. It’s important to note that in August 2017, CoinBase was valued at $1.6 billion. The fundraising round known as series E round was championed by Tiger Global Management and included participants like Polychain, Wellington Management, Y Combinator Continuity and Andreessen Horowitz.
In the United States, CoinBase is considered the poster child of the cryptocurrency industry. Top venture capitalists and other investors hold the exchange in high regard. CoinBase, not too long ago, launched a custody platform that will promote the inflow of institutional investors. On CNBCs 2018 Disruptor 50 list, CoinBase is number 10. The platform was one of the highest benefactors of Bitcoin’s price surge that took it to its all-time high.
Since after peaking, Bitcoin and the rest of the market have fallen by over 65%. At the same time, individual investors are losing interest in the industry as a whole. CoinBase has put mechanisms in place to care for the needs of institutional investors as these investors are going to be game changers in the industry. CoinBase started supporting Circle, one of the upcoming USD backed stablecoin a few weeks ago.
During the announcement on Tuesday, the company made it clear that it’s pain focus is bridging the gap between traditional currencies and the cryptocurrencies. It also intends to build custody offering that will attract more institutional investors. With this new equity, CoinBase should be able to achieve this goal as it also opens its trading platform up to new assets. This will help promote digital assets and cryptocurrencies.
The announcement concluded:
“We have seen so many cryptocurrencies that would thrive if they are added to our platform today. We intend to lay the foundation for supporting thousands of cryptocurrencies in the coming years”.