With new fundraise, Coinbase will be worth $8 billion

A report from Recode says crypto-exchange Coinbase is closing in on a $500 million funding round that would value the company at $8 billion when it closes. The round is to be led by Tiger Global and would include new funds for the company, while also allowing existing shareholders a shot at pre-IPO liquidity. Coinbase, which says it is profitable, was valued at a fraction of the current price last summer -- just $1.5B. Of course, that came before the massive crypto-craze run up in prices and the subsequent bear market that has run though most of 2018. 

Coinbase makes the bulk of its money when people are buying and selling cryptocurrencies frequently and in large amounts. While the decline in token values has apparently hurt the company, it does make a margin on most trades. Fees on trades are typically around 1.5% of the value. (Source: Recode)

About Author

John Biggs is an entrepreneur, consultant, writer, and maker. He spent fifteen years as an editor for Gizmodo, CrunchGear, and TechCrunch and has a deep background in hardware startups, 3D printing, and blockchain. His work has appeared in Men’s Health, Wired, and the New York Times. He runs the Technotopia podcast about a better future. He has written five books including the best book on blogging, Bloggers Boot Camp, and a book about the most expensive timepiece ever made, Marie Antoinette’s Watch. He lives in Brooklyn, New York. Disclosure: Biggs owns and maintains cryptocurrencies in a private account and has been consulting with startups regarding blockchain-based products. He also edits and writes for startup clients.

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