Coinbase recently acquired Echo, an on-chain capital-raising platform, to support founders and create an opportunity for individual investors.
American cryptocurrency exchange Coinbase has acquired Echo, an on-chain capital raising platform. The firm made this move to create more accessible, efficient, and transparent capital markets, especially as founders now struggle to raise funds. Coinbase plans to integrate Echo’s tool suite to cater to this shortcoming.
Coinbase to Leverage Echo’s Tools and Infrastructures
On Oct. 21, Coinbase announced the acquisition of Echo, which offers a platform for communities to invest together and provides founders with a range of options for their cap table. Such platforms have become necessary, considering the struggles that founders face to secure funding. On one hand, there is the unavailability of opportunities for individual investors to invest in private token sales.
Echo boasts of a range of tools, which, when integrated, would allow several projects to raise capital directly from their community. They could achieve this through a private sale or by self-hosting a public token sale using Sonar. Ultimately, the goal is to make fundraising more inclusive, transparent, and efficient, per Coinbase’s post.
It has completed more than 300 deals, helping projects raise over $200 million. Meanwhile, Coinbase’s move aligns with the Echo’s strong vision, which is, “… democratizing early-stage investing, so that more people can support the next generation of breakthrough companies.”
Beyond the capital, the American digital asset service provider is keen on enhancing its community participation. Coinbase believes that it can achieve this feat with Echo. In addition to allowing crypto token sales via Sonar, it intends to leverage Echo’s infrastructure to support tokenized securities and Real-world Assets (RWAs) in the near future.
Coinbase Seeks Expansion Across Several Jurisdictions
The latest deal with Echo further strengthens the crypto exchange’s position in the digital asset sector. Also, Coinbase is seeking expansion into more countries and across several projects. In mid-October, it strengthened its footprint in India with a fresh investment in CoinDCX, one of India’s biggest cryptocurrency exchanges.
Coinbase was quite strategic with its investment in this exchange. CoinDCX boasts of a user base of over 20 million, annualized revenue of ₹1,179 crore, which is equivalent to $141 million, and total transaction volumes of ₹13.7 lakh crore, about $165 billion.
Soon, Coinbase may consider listing more BNB projects, especially after it added the BNB token to the list of new Coinbase coins.
next