Inside Coinbase: From 2012 to Now Into a ~$1.7 billion business
Founders: Brian Armstrong, Fred Ehrsam
Founded Year: 2012
Investors: Andreessen Horowitz, Union Square Ventures, IVP
Funding Raised: ~$1.7 billion
What Is the business model of Coinbase?
Cryptocurrency exchange that enables buying, selling, and storing of digital assets; earns revenue from transaction fees, spreads, and related financial services
How Coinbase got started?
Armstrong developed Coinbase as one of the first easy-to-use Bitcoin wallets after observing how difficult buying crypto was, he joined Y Combinator in 2012 and partnered with Ehrsam, launching the service when Bitcoin was worth just $6
what growth strategy has Coinbase followed?
Gained users by being beginner-friendly and trustworthy in a risky new market, leveraging positive word-of-mouth among crypto enthusiasts and expanding support to many cryptocurrencies and institutional products to drive growth
what are the top products/features of Coinbase
Coinbase app & exchange, Coinbase Pro, Coinbase Wallet, Coinbase Custody services
what was the biggest challenge faced by Coinbase?
Faced regulatory uncertainty and security demands as it grew—had to maintain compliance with evolving crypto laws and survive volatile boom-and-bust cycles (including a 2021 SEC scrutiny of some products)