Coinbase Raises $100 Millions

Coinbase Raises $100 Millions

Coinbase, a wallet and exchange service, has raised $100M in Series D funding led by IVP, a venture capital company.This gave the digital currency

Bitcoin User Tries to Stop IRS
Bitcoin Privacy Under Threat
Alternative currency users brace for another storm by the IRS

Coinbase, a wallet and exchange service, has raised $100M in Series D funding led by IVP, a venture capital company.

This gave the digital currency start-up a post-money valuation of $1.6B, as Tech Crunch (techcrunch.com) reported recently.

The funding round included other companies like Spark Capital, Greylock Partners, Battery Ventures, Section 32 and Draper Associates.

Coinbase had previously raised a total of $106M. Their last funding was $75M Series C round in 2015, as Tech Crunch wrote at the time. Now the company has nearly tripled their valuation to $1.6B, from the rumored $500M in 2015, as the publication explained.

However, the growth has caused some problems. Co-Founder and CEO, Brian Armstrong apologized in a blog post:

“Over the past few months, we’ve seen an unprecedented increase in the number of customers signing up to use Coinbase (4x since January 2017). As a result, our systems have been pushed to the limit. This has caused many customers to have a negative experience.”

Acknoledging their faults, the exchange promised to offer quicker response times to its customer, reaching below 6 hours by Q3 2017, as well as phone support for at least some percentage of the customer base y Q4.

Still, the company has been praised for adding support for Ethereum in 2016 and Litecoin in 2017. The exchange stated that they are open to adding many more cryptocurrencies in the future, as the article made clear.

The co-founder and CEO of Coinbase hinted that the company is planning to build a consumer interface for digital currency apps tha can potentially reach 100M people.

“Consumers need an easy interface to start using digital currency applications (aka decentralized applications, or dapps).”

“With the internet, this happened when HTML and the web browser were introduced on top of TCP/IP. In digital currency we believe this will happen with something like Ethereum script and a yet undeveloped web browser equivalent, which may have a user controlled wallet underlying it. The key feature of this application will be that it dramatically lowers the hurdle for new digital currency applications to be developed and used by ordinary people.”, as he explained in a blog post,

It remains to be seen whether the company wil fullfill phase 3 of its “master plan”. This is also depending on the cryptocurrency market`s future growth.

COMMENTS