Coinbase, the world-known cyber-money trading venue, headquartered in California, is going to pile its funds into startups, which share the company’s values and work in the niche of cryptos and blockchain.
The intentions are indeed serious, as Coinbase’s head Asiff Hirji has already told CNBC. According to his words, the crypto bourse is about to set off a novel “incubator” fund for your startups.
Money For Young & Perspective
Hirji clarified that Coinbase is going to “invest off our balance sheet into crypto companies.” However, he added, the exchange has no intentions to profit from these companies, expecting them to bring revenues in the upcoming future.
On the contrary, according to his words, Coinbase will have minimum revenues from these pilings, when compared to overall income of the exchange. Hirji added that the fund-vehicle for seed-stage investments is already off to a $15 million commencement and is aimed at surging.
How Will It Work?
The early-stage pilings for the find for the first time will take place this week already. And that is not only to help crypto-startups to get back on their feet, but also to help them build relationships in the frames of the cyber money niche. To achieve that goal, the bourse may pile into its rivals.
In the blog post, the company unveiled:
"You may also see us invest in companies that ostensibly look competitive with Coinbase. We're taking a long-term view of the space, and we believe that multiple approaches are healthy and good."
Currently, according to the head of the exchange, the “incubator” fund, which got the name “Coinbase Ventures” is looking for constitutors. Coinbase is ready to provide them with funds to start off the business.
"It's not about investing in the token, it's not about trying to line up tokens that we would put on our exchange," Hirji stressed.
What About New Coins On Coinbase?
As it is known, Coinbase provides its services in 32 countries and is considered to be among the top American exchanges for purchasing and vending most popular cyber-coins.
Therefore, adding novel pairs or units for trading would bring more users to the exchange. For example, Ripple (XRP), the third most valuable crypto-coin, is still unavailable for trading on its GDAX venue. There have even been circulating rumors that it might add it soon, which led to the skyrocketing of XRP’s rate.
Despite anything, the company has no clear intentions of appending extra coins to its base as of writing. However, Hirji said that once the regulation over cryptos works out, the exchange will start listing additional currencies. Notably, he made these claims after the U.S. Securities and Exchange Commission took a hardline stance on crypto bourses in the country.
But when it comes to Coinbase Ventures, Coinbase will try not to be biased and prefer firms to pile into without correlating with picking novel cryptos for the platform. Hirji concluded:
"We are not investing in currencies because we do not want even the appearance of a conflict of interest."