By
Godfrey Benjamin
April 25th, 2024
It has become known that the information about the acquisition of Tagomi by Coinbase for $150 million is absolutely false.
Update: Though it was informed by media that Coinbase which is one of the world’s largest cryptocurrency trading exchanges had acquired one of the most innovative digital assets brokerage firms Tagomi for the sum of $150 million, the exchange has denied this information.
As Coinbase VP of communications Rachael Horwitz noted, all this news is “100% false.”
Our earlier version indicated that Coinbase had acquired Tagomi for $150 million.
“There is no acquisition planned,” Coinbase told CoinDesk with Tagomi spokeswoman also confirming the situation.
Tagomi which is a digital assets brokerage was started by former traders from Goldman Sachs and ex-employees from Union Square. The startup is reported to have raised about $28 million in funding from venture capital investors which include technology investor heavyweights such as Pantera and Morgan Creek. Being a startup within the digital asset space, at the times when the false news spread, it appeared that Tagomi has what it takes to become a unicorn within the crypto space.
The denied fusion of Coinbase Prime and Tagomi was believed to bring massive inflows from all sorts of institutional investors who will be willing to place their funds within the new ecosystem (with the addition of Tagomi as a key player of course). This could also create some unexpected activity within the crypto space as moves such as this one would draw in new entrants.
All in all, the cryptospace has been beset with all kinds of rumors of acquisitions and counter-acquisitions which has affected the general integrity of information from time to time. This is because the flow of information in the nascent industry will be fallible based on the sources that inform on recent events.
However, this does not mean that the cryptospace won’t grow and thrive as the technology industry often goes through such moments. And it is highly likely that in the first quarter of next year, we will be seeing some corporate action on the part of Coinbase as the cryptocurrency community heats up ahead of the next Bitcoin halving event come next year.