General

Coinbase Acquires Startup Firm Earn.com

There are at least two key developments involving Coinbase. The first one is about its acquisition of Earn.com, a startup firm focusing on social network enabling users to earn and spend bitcoin. The second is in respect of bringing in the CEO, Balaji Srinivasan, and named him as its first chief technology officer. Both are viewed as a positive catalyst for the company as the cryptocurrency market is growing at a rapid pace despite sluggishness in prices.

Rumored Price Tag

There has been no official announcement in respect of the amount involved in the transaction. However, there are only rumors that suggested a price tag of about $100 million. Previously Earn.com was better known as 21.co and rebranded it last year towards the end. Incidentally, the rumored amount was the same amount that the company raised in its last funding round happened in 2015. However, the reported amount was sharply lower than the earlier valuations of the company. If reports are to be believed, then the acquisition has pushed back investors. Given the current market conditions, there is also a threat of further erosion of valuation.

Fortune reported Srinivasan as saying that Coinbase was preferred by everyone because it is the Blockchain winner in the United States. The acquisition would enable the cryptocurrency exchange to provide services that enable senders to pay users through digital coins to reply to emails, as well as, complete tasks, bitcoin news reported.

Coinbase CEO Brian Armstrong reacted to the acquisition news and told the media that “We’re going to be doubling down on the Earn business within Coinbase, as they have built a paid email product that is arguably one of the earliest practical blockchain applications to achieve meaningful traction.” Incidentally, both the companies are supported by a Silicon Valley venture capital firm, Andreessen Horowitz.

Referring to the new entry of Srinivasan, Armstrong indicated that he would play a key role in the company as its technological evangelist. He would be given the responsibility of evangelizing both blockchain technology and the cryptocurrency apart from educating the global community. He would also take care of the recruitment of crypto-first talent in the merged entity and start setting up an internal strategy for technology. This included amalgamating and expanding the acquired firm beyond its current service.

No Drastic Changes

On its part, Earn.com disclosed that it was not changing drastically or going down from its previous stand. On the other hand, the acquisition would help the product to get bigger and better. The company pointed out that thousands of users have already earned virtual currency drawing millions of dollars.

However, Earn.com indicated that there would be one exception to what it was doing earlier. The company indicated that it had put its token launch on the backburner. On the other hand, it would focus on amalgamating with the cryptocurrency exchange’s infrastructure. This would scale up the company’s service. The company promised that more details about its future plans could be announced. The advantage that Coinbase sees in Earn.com is that it could deliver meaningful traction since it was one among the earliest practical blockchain applications provider.

Article written by Prateek Kulhari

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Prateek is a business editor who writes about various topics such as technology, health and finance. At Pressly, he works along with the colourful folks that build a nation through tech startups. He is also a professional football player and video games enthusiast.