Coinbase

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Coinbase
Founded 2011
Headquarters San Francisco, California
Key People Brian Armstrong, CEO
Products Bitcoin wallet and processor

Coinbase is a company that provides a platform for storing, spending, buying and accepting digital, or cryptocurrencies. Its stated goal is to create an "open financial system for the world" and help customers convert digital currencies into local currencies.[1]

The firm also owns and operates a spot exchange called the Global Digital Assets Exchange or GDAX, which allows for trading of bitcoin, bitcoin cash, ethereum and litecoin.

It also acts as a bitcoin processor for many merchants and businesses such as: Expedia, Overstock.com and Dell.

Coinbase became the blockchain industry’s first “unicorn” after it raised $100 million in August of 2017, valuing the company at $1.6 billion.

The San Francisco-based company was founded by founded by Brian Armstrong and Fred Ehrsam, a former Goldman Sachs trader. It was incorporated in 2012. Coinbase is available in 32 countries. [2] [3]

History[edit]

In June 2012, Coinbase raised just over $160,000 with a goal of making bitcoin easy to use by anyone. In late 2012 and early 2013, the firm introduced a platform allowing users to buy and sell bitcoins by connecting to any U.S. bank. Growth on the platform quickly accelerated, hitting $1 million in bitcoins per month in Feburary 2013. At the time, the company had about 40,000 users and handled 30,000 transactions per month.[4][5]

The company raised $600,000 in seed funding from investors including Y Combinator, IDG Ventures, Greg Kidd, Adam Draper, Funders Club and Gary Tan. The company received $5 million in funding from the venture capital firm Union Square Ventures in May of 2013[6] and $25 million from the venture capital firms Andreessen Horowitz, Union Square Ventures and Ribbit Capital in December 2013.[7]

By the summer of 2013, Coinbase moved to encourage more retail acceptance of digital currencies by waiving processing fees for its services until a participating merchant hit $1 million in sales with the service. Service fees at the time were 1 percent for Coinbase and other similar services, while credit cards charged 3 percent.

In August 2017, Coinbase introduced Toshi, its first mobile application for Ethereum, as the first external application outside of the main Coinbase wallet, trading platform, and GDAX, Coinbase's digital currency exchange.[8]

Coinbase experienced an outage in December of 2017 when the platform went down under the weight of heavy traffic, leaving many of its more than 10 million customers unable to access their funds.[9]

In January 2018 Coinbase teamed up with Trading Technologies to give TT's clients access to GDAX so that they can trade futures and spot bitcoin side by side on TT's platform. The service is expected to begin in March 2018.[10] The companies said the new tools would increase the reach of GDAX’s platform.

Products and Services[edit]

The company provides an API that enables users to generate bitcoin wallets and addresses, buy/sell and send/receive bitcoin, securely store bitcoin, retrieve real-time or historical price information, receive notifications when payments arrive, and accept and request bitcoin payments as a merchant. Its platform also ensures the secure storage of bitcoins offline and distributes bitcoins geographically in safe deposit boxes and vaults worldwide.[11]

Key People[edit]

References[edit]