Coinbase Claims That Its Worth $8 Billion

The new report made by Recode earlier this week states that Coinbase self-valued the company to be worth around $8 billion. Despite the fact that it is one of the biggest and most well-known exchanges in the world, this is still an incredible amount for a crypto exchange.

Coinbase started its business as a crypto exchange in San Francisco, back in 2012. Ever since then, it has always managed to be a differentiator in the world of cryptocurrencies. It provided an app for buying and selling cryptos that was easy to use, and in time, the exchange became one of the most mainstream entities. It even managed to climb to the top of the Apple’s App Store charts last year, however briefly.

Coinbase shocks the crypto world

Now, however, the exchange released some very interesting and unexpected news. They decided to self-evaluate and have estimated their worth to be an astounding $8 billion. According to Recode, this valuation was revealed as part of the stock offering to Earn.com’s investors. Earn.com is a startup that is focusing its efforts on providing users with paid email services based on blockchain technology.

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Coinbase decided to buy Earn.com earlier in April, and they estimate its worth at $120 million. They also made Balaji Srinivasan, the startup’s CEO, the first person to hold the position of Chief technology officer, which he disclosed on his Twitter account.

People familiar with the details of the negotiations for this startup’s purchase say that Coinbase offered information regarding their stock and approximate value while they were preparing an equity package for Earn.com’s investors. It is believed that Coinbase came up with the value of $8 billion based on their earnings at the end of the previous year.

The popularity of the platform

According to Coinbase’s very own metrics, they have over 20 million users with more than $150 billion traded.

The previous year brought huge growth to Coinbase’s user base. In fact, there were times when their popularity was seen as crypto mania. It is because of this popularity that Brian Armstrong, Coinbase’s CEO, stated to The New York Times that they couldn’t guarantee that the website will be up exactly when it is needed.

When the company organized their series D funding round in August of last year, they were valued at around $1.6 billion. The funding managed to bring in over $100 million, but the valuation is what made this exchange the first ever crypto unicorn. This is a label created for companies whose estimated net worth exceeds $1 billion.

This is when the twist came, and the revenues skyrocketed at the year’s end. Crypto fever started, and investors began entering the markets in greater numbers than ever. Naturally, Coinbase benefited greatly. Estimations claimed that the company’s revenues went way beyond $1 billion.

Such numbers were a reason for rumors regarding the fact that Coinbase wants a license to become a broker. Supposedly, they also want to become officially recognized as a platform for electronic trading. By receiving such designation, the company would receive a regulatory cover if the officials from the US ever tried to impose any crypto restrictions.

Ready for the future

Coinbase currently only works with four cryptos. Even so, their app and website are very popular. They even managed to avoid many thefts and other scandals that hit similar exchanges pretty hard. Their platform is easy to use and allows users to withdraw and deposit fiat currencies.

In fact, the exchange was even named one of the best companies to work for within the Bay Area. They are constantly bringing additions to the team, which can be seen even on their Twitter.

Despite the fact that this valuation of the company comes from within, it might be a preview of how the entire world is going to see it in the future. Their record is spotless, their brand well-known, and they are popular. It is expected by many that it might become one of the first ever mainstream investment entities that will come from a cryptocurrency-related business.

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