Říj 03

Coinbase Brings on Charles Schwab Exec to Expand Influence

Coinbase recently announced that a Charles Schwab board member would be joining the exchange’s board of directors. Coinbase is also reportedly looking to close what could be a $500 million deal with Tiger Global.


San-Francisco based digital currency exchange Coinbase, long seen as an industry leader, appears to be expanding their financial influence even more.

In an October 2nd blog post, Coinbase CEO Brian Armstrong said the company is adding Chris Dodds of Charles Schwab to their board of directors. Dodds currently sits on the board of directors at Charles Schwab as a senior private equity advisor.

Armstrong wrote how Dodds’ experience in the financial and accounting fields would “be an asset to the Coinbase leadership team as we focus on scaling our business.”

The CEO classified the addition of Dodds as part of an effort to,

[…] expand our financial services capabilities as we head into this next chapter for the company and the cryptocurrency industry as a whole.

Charles Schwab

Eyeing the Future

The news about Dodds is not the only reason why Coinbase has been in the headlines recently. The company is currently conducting discussions with Tiger Global and its shareholders about an investment that could total $500 million.

Speculation holds the popular digital exchange could boost their coffers by about $250 million while spending up to $250 million to buy out investors.

If the deal were to go through, estimates are Coinbase would then be valued at roughly $8 billion.

This figure would place the company towards the top of highest-valued start-ups in the United States, while would seemingly lend a big boost of credibility to the cryptocurrency industry.

The $8 billion figure is roughly the same figure the company valued itself at  in April when they pitched an equity package to Earn.com investors.

Even though Coinbase’s operations have been impacted by relatively rough market conditions in 2018, they received a valuation of about $1.5 billion last summer, just before consumer interest in virtual currencies skyrocketed as the year closed out.

The company also said in September that they had hit their 2018 hiring target after a report from Business Insider noted the number of Coinbase staff members was at around 500.

Board of Directors

Building on Recent Activity

The latest round of news from Coinbase only builds on what has been an active past few weeks for the company. At the end of September, Coinbase announced a new range of investment tools that seemed to be focused on new digital currency investors.

These new tools included Coinbase Bundle and Coinbase Learn, along with educational Informational Asset Pages. Just a few days prior, Coinbase said they had changed their listing policy to boost the number of offerings.

The new policy permits creators to send in listing applications without having to pay a fee — as opposed to simply waiting to be contacted by Coinbase. Coins are now able to be regionally listed if they are deemed compliant with applicable regulations.

What do you think about the recent activity on the Coinbase board? Let us know in the comments below!


Image courtesy of Bitcoinist archives, Shutterstock, Twitter/@coinbase.

Share
Úno 26

Coinbase is ‘Building a Retail Exchange’ Not a Wallet

Source: bitcoin

Coinbase is ‘Building a Retail Exchange’ Not a Wallet

The San Francisco-based Bitcoin exchange CEO Brian Armstrong recently wrote a Medium blog post called “Coinbase is Not a Wallet.” Armstrong believes some customers are confused about the company thinking of it as this type of service. In the beginning, the business originally set out to be a wallet service but over time has become a “regulated exchange.”

Also read: Bitcoinist Jobs: Accepting Applications For Sales Manager

“We set out to build a bitcoin wallet, but it turns out we were building a retail exchange.”— Brian Armstrong, CEO Coinbase

Coinbase Is a Regulated Exchange ‘Not a Wallet’

Armstrong is concerned that “hybrid wallet/exchanges” such as Coinbase and others have caused confusion within the industry. Lots of exchanges not only enable the purchasing and selling of the digital currency but also have a wallet within the exchange architecture. Currently, Armstrong’s company has 80% of its customer base using the service to purchase and sell Bitcoin. 20% of users are using it for day-to-day wallet transactions and storage. The Coinbase CEO says there is a strong difference between these types of services. Armstrong states in the blog, “I feel like a lot of confusion and anger has been voiced by customers who thought they were using us as a wallet, and didn’t realize they were using a (regulated) exchange. I want to make it perfectly clear going forward that Coinbase will focus on being an exchange.”

Retail exchanges are an easy way to convert government issued fiat in and out of Bitcoin says, Armstrong. This means less privacy and building relationships with “banks and regulators,” and wallets are meant for individual privacy. Armstrong explains, “they want to use all sorts of innovative apps that are emerging in bitcoin. Often they want privacy. And the way you’d measure success in a wallet is probably by the number of transactions sent per day.”

The company knows its service is a popular method of storage. Coinbase says it stores nearly 10% of all Bitcoin in circulation between its multi-sig vaults, and company controlled cold storage. Armstrong says that security is a top priority for the business and people will continue to use it as a wallet. However, he believes the 80/20% numbers in about five years could be “inverted.” This is why over the next year the CEO says Coinbase will be changing its focus. Armstrong says this entails:

  • We will add as many payment methods as possible to make it convenient for people to get their money into and out of bitcoin all over the world. I think this will be an incredible force for good in the bitcoin ecosystem to help it grow.
  • We will continue to be a regulated business and proactively work with governments, banks, and regulators around the world to educate them about bitcoin.
  • We will continue to comply with financial services laws, and our customers should expect as much. You will not be anonymous if you decide to use Coinbase.

Not that this news should come as a surprise to hardcore Bitcoin enthusiasts, but it does solidify the Coinbase company interests and goals within the industry. Users should understand that using the service will not be anonymous and will be regulated through government policies. Other cryptocurrency solution exchanges may not feel the same way and may want to cover both aspects of buying/selling with day-to-day wallet use as well. Coinbase is making its stance quite clear and wants people to understand exactly what they are.

What do you think about Brian Armstrong saying Coinbase is not a wallet? Let us know in the comments below.


Images courtesy of Shutterstock, the Coinbase Website, and Wiki Commons

 

The post Coinbase is ‘Building a Retail Exchange’ Not a Wallet appeared first on Bitcoinist.net.

Coinbase is ‘Building a Retail Exchange’ Not a Wallet

Share