Coinbase: From Bitcoin Sending App to $86 Billion Listing Giant
San Francisco, USA – Blockchain Journal – Yesterday marked four years since Coinbase officially listed on the Nasdaq, a milestone in the history of the digital asset market. On April 13, 2021, the leading US cryptocurrency exchange went public with a valuation of $86 billion, peaking at nearly $100 billion at one point, rivaling tech giants like Facebook on its first day of listing.
From “Bitbank” to Billion Dollar Company
Few people know that Coinbase started with a humble post on Hacker News in March 2012, when Brian Armstrong was looking for a co-founder for an application called “Bitbank” – an idea similar to PayPal but for Bitcoin. Just three months later, the name Coinbase was born, and the company quickly received $165,000 in seed funding, laying the foundation for an extraordinary journey of growth.
Initially, Coinbase simply operated as a platform for users to buy and sell Bitcoin with US dollars. However, as early as February 2013, users were trading $1 million worth of Bitcoin per month, demonstrating the promising market potential.
Creating thousands of millionaires overnight
The Nasdaq listing was not only a turning point for the cryptocurrency market, but also created a wealth shock for employees and investors. Brian Armstrong at that time owned 40 million Coinbase shares, adding $16 billion to his personal fortune. About 1,000 new millionaires were also created overnight, according to Armstrong.
However, the journey to the exchange was not a bed of roses. Armstrong and his team have spent nearly a decade battling market volatility and regulatory challenges, gradually making Coinbase a leader in the first wave of crypto in the US.
Continued expansion – Deribit targets $5 billion
Beyond just being an exchange, Coinbase is pushing to expand into derivatives, and is currently in advanced talks to acquire Deribit – the world’s largest crypto options trading platform. The deal could value Deribit at $4-5 billion, adding significantly to Coinbase’s growing futures business.
Bitcoin remains central
Despite diversifying its revenue beyond transaction fees, Bitcoin still accounted for about 30% of total trading revenue last year. However, Coinbase has also been criticized for being slow to integrate technological upgrades like the Lightning Network or Taproot, which the community hopes will improve performance and scalability.
An expanding future, despite a falling stock price
Coinbase shares are currently trading at about half their initial listing price, reflecting a correction in the cryptocurrency market after years of hot growth. However, Coinbase remains a pioneer, as other companies such as Circle (issuer of USDC) and eToro are also preparing to enter the stock market in the near future.
From “Bitbank” to Nasdaq, Coinbase’s journey is a testament to the explosive growth of the digital asset industry. With a continuous expansion strategy and strong belief in the future of blockchain, Coinbase remains a symbol of maturity and professionalism in the crypto world.