By
Godfrey Benjamin
April 23rd, 2024
Coinbase has decided to close Earn.com and to focus on its Coinbase Earn program. By February 20, Earn.com users have to withdraw their funds from the platform.
One of the world’s leading crypto exchanges Coinbase is winding up the activity of Earn.com, blockchain startup it acquired in April last year. The exchange has decided this time to expand its Coinbase Earn program, and Earn.com may help in that. Earlier, the exchange promised it would completely integrate Earn.com into Coinbase’s operations while the startup’s existing business would continue. However, now Coinbase is going to close Earn.com. As the exchange has stated, it will now use Earn.com within Coinbase Earn program only.
By February 20, Earn.com users have to withdraw any funds on the platform.
Back to Earn.com Acquisition
Earn.com was a blockchain startup that allowed senders to pay users in digital currency for replying to emails and completing tasks. Considered as an ICO project, Earn.com was an easy way to earn cryptos without directly buying them. In April last year, Coinbase acquired Earn.com for $120 million. It was the biggest acquisition by Coinbase at that time. As the exchange stated then, neither of the companies would change anything drastically. Besides, Earn.com promised to improve the quality of its products and services as a result of the deal.
The deal involved an offer of an equity package. Coinbase offered its stock at an approximate price, but those familiar with the matter told that Earn’s investors settled the deal for being paid in cash while some of the members from the Earn’s management team (including former Earn CEO Balaji Srinivasan) preferred to take their payments in stock options. It is notable that soon after the acquisition, the valuations of Coinbase have soared to $8 billion.
Coinbase to Close Earn.com: No More Earn’s Business?
Earn.com will not stop its activity. The thing is that it will be transformed to become a part of the Coinbase Earn program.
Coinbase said:
“[Coinbase will start] scaling Coinbase Earn even further by adding more campaigns to the platform, to connect more blockchain networks with engaged crypto users.”
Coinbase Earn started in December 2018. This program allows Coinbase users to earn crypto for answering quizzes, completing tasks, and trying new decentralized protocols. The difference from Earn.com is that the platform is integrated within the exchange’s ecosystem while Earn.com redirects its users to a separate domain.
In May this year, Coinbase announced its Earn program had expanded to 103 countries. The initiative allowed users from the U.S., U.K., much of the EU, Canada, Singapore, Australia, and others, to sign up and earn crypto for learning about the tech. According to Coinbase, its Coinbase Earn product “has allowed nearly a million unique users in 115+ countries to earn their share of hundreds of millions of dollars in crypto.”
Currently, it is not clear what Coinbase is going to do with Earn.com further. However, it is obvious the exchange will carry out the transformation step-by-step. That’s why Earn.com users should not worry. They will have time to finish with Earn.com and learn to use Coinbase’s program.