Coinbase has embarked on a shopping spree this week. The San Francisco-based cryptocurrency exchange announced its plans for the second buyout in less than a week.
After the months-long rumors, the leading cryptocurrency exchange revealed that they acquired the fellow cryptocurrency startup Earn.com. Even though terms of the deal were not disclosed, TechCrunch reports that Earn.con was sold for more than $120 million (since it got more than $120 in funding over the years).
The good thing is that Earn.com has had a positive return on their investment which definitely make the cost of the total package exceed $120 million. Formerly known as 21 Inc., Earn.com has had an eclectic history – being launched as a hyped Bitcoin startup but ultimately evolving in a crypto-based professional networking platform that helps users earn Bitcoin by answering emails and completing other small tasks.
Earn.com has been successful over the past few months. They said that they are developing a special ERC20 token to power its platform in place of Bitcoin. This is where the dots connect for Coinbase too – as it recently announced its intention to add full support for ERC20 tokens to its suite of products.
Coinbase’s blog post about the acquisition, however, covers a lot of space discussing the former Earn.com CEO Balaji Srinivasan who will join Coinbase as the first CTO on board.
This news comes in parallel with the first venture capital fund launched by Coinbase – Coinbase Ventures – which will provide the leading industry startups with $15 million in their early seed financing phase.
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