Coinbase Bags a $5 Million Deal, Biggest Funding Ever for Bitcoin Startup
Coinbase, a renowned bitcoin wallet and platform, announced Tuesday one of the biggest fundings till date, with a $5 million investment made by Union Square Ventures.
Confirming the reports were the Coinbase’s founders Fred Ehrsam and Brian Armstrong who, in an exclusive interview with The Wall Street Journal, explained how this deal would cover operational costs and hire engineers, business support staff and designers.
Coinbase is an online platform which helps users buy Bitcoin, a crypto-currency which took the e-commerce concept to the next level. The platform provides its users with a digital wallet in which they can store their Bitcoins and make transactions for goods and services. There are about 300 merchants who have joined Coinbase as their reliable bitcoin platform, the figure which is likely to rise in near future, especially after the $5 million deal with the Union Square Ventures.
On asking Fred Wilson, Union Square Ventures partner, about the company’s decision to make such huge investments, he said, “There is no magic bullet that they have. They have competitors doing the same thing. We just really liked their approach to the business and the product they built. Coinbase engineers are very pragmatic, level-headed engineers.”
He also indicated that the investment is, by far, less risky due to the current activities going on with Bitcoin right now. The former sees a lot of caliber in Bitcoins as the next big currency. “If Bitcoin really becomes the global currency that every country and every business accepts, that could be worth a lot of money”, he said.
The foresight of such experts may prove true or false, but no one can deny the rising popularity of Bitcoins as the next big thing in international finance markets. Recently, OpenCoin, a San Francisco based startup company, accepted bitcoin raising an anonymous amount from the A-List firms like Andreessen Horowitz, and others.
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