For your standard currency transactions, you will probably head to your bank or any other financial institution. But what do you do when you need to transact digital currencies such as Bitcoin? Well, in that scenario, you are most likely to use the services offered by Coinbase, the world’s leading digital currency exchange and digital currency wallet. Founded in 2012 and headquartered in San Francisco, California, Coinbase allows customers to buy and sell digital currency such as Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Till date, Coinbase is being used by more than 20 million customers and trades worth more than $150 billion have been conducted on the platform.
The journey started when Brian Armstrong and Fred Ehrsam noticed the challenges that people faced when transacting in digital currencies. There was no reliable platform that could be used at the global level to transact in digital currencies. As digital currencies were gaining prominence, there was an urgent need to develop a platform that people could use to transact in digital currencies. This thought prompted Brian and Fred to launch Coinbase in 2012. Building trust was a major challenge for the company, as there was no government regulation supporting the buying and selling and storage of digital currencies. Coinbase had to work hard to develop a foolproof system that would ensure proper security of peoples’ money.
Cryptocurrencies have had their share of criticism and controversies. The negative sentiments have been driven by recent hacker attacks and news stories that claim that digital currencies are being used extensively by criminals, drug dealers and black market operators. However, the tide is turning, as top cryptocurrencies are being increasingly accepted by people and financial institutions. As of now, Coinbase has become the kingmaker of cryptocurrencies, owing to its dominant position in the market. For customers, the digital currencies being traded on Coinbase act as proof that these currencies are legit and a worthwhile investment option.
Coinbase is on a fast-track growth and has received investments worth $217 million from leading global investors such as Andreessen Horowitz, USV, DFJ Growth, Intercontinental Exchange, NYSE, MUFG, BBVA, USAA, Ribbit Capital, SV Angel, Y Combinator, Start Fund, Sozo Ventures, and Founders Club. Coinbase has also made various acquisitions over the years such as Kippt, Blockr.io, Memo.AI, Cipher Browser, Earn.com, Paradex, Venovate, Digital Wealth, Keystone Capital, and Distributed Systems. Coinbase is on its way to achieve its primary mission of creating an open financial system for the world.