Coinbase, a cryptocurrency startup company has announced on Monday about its acquisition of a fellow cryptocurrency startup company, Earn.com, confirming the old speculations that the two companies were carrying out such discussions quietly.
While Coinbase did not disclose the terms about the deal, TechCrunch reports that the investors, who had given Earn.com about $120 million in funding since the past few years, were provided with a good return on investment (ROI) by Coinbase. This news goes in line with the previous reports, which said that the total ROI package for the investors would be nearly $120 million.
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Earn.com, formerly known as 21 Inc., has had an amazing history. It was launched as a Bitcoin mining operation start-up company, but later, it was launched as a cryptocurrency based professional networking company which aims at providing its user’s cryptocurrency rewards in exchange for answering emails and doing other related tasks.
Earn.com has said that it is coming up with an ERC20 token in place of Bitcoin to power its platform which is great as Coinbase had recently announced that it would soon add full support for ERC20 tokens to its products. However, in one of its earlier blog post, Earn.com discussed the acquisition and said that the company would be putting its token launch ‘on the back burner’ as it merges with Coinbase.
On the other hand, Balaji Srinivasan, former Earn.com CEO will now become first chief technology officer of Coinbase. Before joining Earn.com, Balaji was a partner at Andreessen Horowitz and is the most high profile acqhire of Coinbase to date.
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This is the second acquisition made by Coinbase in these many business days. The company had announced on Friday that it acquired Cipher Browser, a mobile Ethereum wallet that also lets the users access decentralised applications.
Coinbase’s sole employee, Peter Kim, had joined Coinbase as an engineering team lead. He will now work towards integrating some of Cipher Browser’s features into Coinbase’s mobile decentralised applications browser, called Toshi.
As reported by CCN lately, Coinbase has also launched its very first venture capital fund lately, called Coinbase Ventures which aims at providing industry start-ups with $15 million as early seed financing.