Key notes
- Coinbase acquired Echo to create more accessible, efficient and transparent capital markets.
- The cryptocurrency exchange focuses on providing solutions to founders who are struggling to find capital.
- This is an opportunity for retail investors to invest in private token sales.
US cryptocurrency exchange Coinbase has acquired Echo, an online capital raising platform. The company took this step to create easier, more efficient and transparent capital markets, especially since the founders are now struggling to raise money. Coinbase plans to integrate the Echo suite of tools to meet this shortage.
Coinbase to Leverage Echo Tools and Infrastructure
On October 21, Coinbase Announce The acquisition of Echo, which provides a platform for communities to invest together and provides founders with a range of options for their cap table. Such platforms have become necessary, given the difficulties founders face in securing funding. On the one hand, there is a lack of opportunities for retail investors to invest in private token sales.
Echo boasts a suite of tools, which, when combined, will allow many projects to raise capital directly from their community. They can achieve this through a private sale or through a self-hosted public token sale using Sonar. Ultimately, the goal is to make fundraising more inclusive, transparent, and efficient, according to a Coinbase post.
It has completed more than 300 deals, helping projects raise more than $200 million. Meanwhile, Coinbase’s move aligns with Echo’s powerful vision, which is to “…democratize early-stage investing, so more people can support the next generation of pioneering companies.”
Outside the capital, the American digital asset service provider is keen to enhance its community engagement. Coinbase believes it can achieve this feat with Echo. In addition to allowing the sale of cryptocurrencies via Sonar, it intends to leverage Echo’s infrastructure to support token securities and real assets (RWAs) in the near future.
Coinbase is seeking to expand across multiple jurisdictions
The recent deal with Echo strengthens the cryptocurrency exchange’s position in the digital assets sector. Also, Coinbase is looking to expand into more countries and across multiple projects. In mid-October, it strengthened its presence in India with a new investment in CoinDCX, one of the largest cryptocurrency exchanges in India.
Coinbase was quite strategic with its investment in this exchange. CoinDCX boasts a user base of over 20 million, annual revenue of ₹1,179 crore, equivalent to $141 million, and a total transaction volume of ₹13.7 lakh crore, equivalent to approximately $165 billion.
Soon, Coinbase may consider listing more BNB projects, especially after it added the BNB token to Coinbase’s list of new coins.
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A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the world of cryptocurrencies and finance, amassing industry experience having survived both bear and bull markets over the years. Barth is also the author of four self-published books.
The post Coinbase Acquires Crypto Investing App Echo: Details first appeared on Investorempires.com.
