Coinbase History: Founders, Location & Background

Coinbase is one of the leading cryptocurrency exchange platforms based in America. Although Coinbase is a successful company, it does not have a physical headquarters and operates remotely with employees working from home.

The company operates in over 100 countries and tops the cryptocurrency trading charts in the US. Coinbase operates on a user-friendly interface that is easy to understand, even for novice traders. In short, Coinbase’s financial system will elevate your trading experience with ultimate ease.

So who is the founder of Coinbase? Where is Coinbase located? Where are Coinbase servers located?

If you are interested in learning more about Coinbase’s pioneering players and history, you have landed on the right page. This article will provide a deep insight into the company’s origin and how it became one of the leading exchanges for digital currencies.

So without further ado, let’s get started.

Coinbase History

Brian Armstrong designed Coinbase to ease Cryptocurrency trading transactions, making it one of the best in the cryptocurrency industry. Since trading in Bitcoin garners popularity, Coinbase introduced bank transfers for selling and buying Bitcoins. The decision to make Bitcoin its primary currency resulted in unexpected growth and helped the company get positive returns.

2013 was a significant year for Coinbase as it received multiple investments from various investors. This funding included a $25 million investment from Andreessen Horowitz, Ribbit Capital, and Union Square Ventures. The company also received $5 million through venture capital financing led by the venture capital firm owned by Fred Wilson.

Eventually, the company’s operations became complex as more users started using the platform. This exponential growth forced Coinbase to expand its workforce, with Olaf Carlson-Wee joining the company as the first employee in 2013.

The company hit its one-million user mark in 2014, making it one of the fastest cryptocurrency trading platforms to achieve the milestone. Coinbase acquired various services to strengthen its operation, including Blockr and Kippt, to provide better features like insurance coverage and a secure vault system to its customers.

Coinbase also partnered with various industry giants to enhance its payment processing capabilities. The company formed a holding company, Coinbase Global Inc., to improve its services. This incorporation allowed the company to incorporate various payment platforms to boost their trading platform.

Coinbase’s increasing popularity and influence continued in 2015 as several banks and companies invested $75 million in the platform. These entities include the New York Stock Exchange, Draper Fisher Jurvetson, and several American banks. The company launched its Bitcoin exchange called Coinbase Exchange in 2015, offering services to other countries, including Singapore and Canada.

After focusing on Bitcoin as its official currency, Coinbase expanded its cryptocurrency portfolio to trade in Litecoin and Ethereum. The company acquired BitLicense to expand its services and trade in other cryptocurrencies like Bitcoin Cash. However, price abnormalities and dubious transaction cycles led to an investigation in 2017.

In 2018, the company introduced Coinbase Ventures to focus on blockchain investment, starting with Compound Labs. Coinbase also launched other services like Prime and appointed various professionals, including Amazon cloud’s Tim Wagner. Coinbase’s Prime platform made it an ideal crypto exchange for institutional and retail users.

After having a successful 2018, Coinbase acquired Neutrino – a blockchain intelligence platform, to boost its security network. However, the undisclosed price raised concerns among Coinbase users, as Neutrino shared connections with various government surveillance networks and hacking teams. However, Armstrong clarified the negative post and assured Coinbase users that the company would do everything to keep the platform secure.

Besides grossing high profits in the United States, Coinbase’s revenue grew significantly in the United Kingdom, with an $8.6 million net profit in 2018. The company generated around $520 million in global revenue in 2018, making it one of the most successful decentralized exchanges of 2018.

In short, Coinbase became a global brand for cryptocurrency enthusiasts and has come a long way since its inception.

Where is Coinbase located?

Coinbase is a San Francisco-based cryptocurrency exchange that deals in a wide variety of digital assets. After introducing its services in 2012, the company garnered a lot of attention for its product offerings, helping it to become the leading crypto exchange for blockchain tokens, popularly known as digital gold.

The company expanded its operation, expanding its reach to more than 100 countries. Although the company lacks physical headquarters, you can contact its customer support in different locations, including London, Tokyo, and New York.

Who is the founder of Coinbase?

Brian Armstrong is the founder of Coinbase and started the company in June 2012. Fred Ehrsam later joined the company as a co-founder, providing his years of trading expertise.

Armstrong had worked for many reputed companies, including Airbnb, before founding Coinbase. Initially, Armstrong partnered with British programmer Ben Reeves to start the venture. However, Armstrong and Reeves parted ways due to their differences regarding Coinbase’s operations.

Since Armstrong required funds to meet his initial goal, he presented his proposal to an American startup company backed by various American investor circles. Y Combinator offered $150,000 cash to Armstrong, helping him establish Coinbase based on his prospective idea.

Coinbase Founders

Brian Armstrong

Besides holding the CEO post in Coinbase, Armstrong is also the CEO of Coinbase Custody and Coinbase Ventures. In short, Armstrong is the real owner of the company. 

Fred Ehrsam

Although Ehrsam does not hold an executive position in the company, he serves as one of the board directors and has 8.9% of the company’s stocks.

Both Armstrong and Ehrsam garnered fame and accumulated billions after Coinbase hit the mainstream. The company received millions of funds from various reputed sources, including top companies.

Here are some vital Coinbase statistics:

• Coinbase Valuation – According to the latest updates, Coinbase achieved a landmark after the company’s value shot to $85.7 billion in 2021. It was an outstanding valuation for a private company as it surpassed its last valuation by 10 times.
• Coinbase stock – As per the latest standings, Coinbase stock stood at $189.86 on NASDAQ.
• Coinbase founder net worth – According to Forbes, Armstrong’s net worth was around $9.6 billion in January 2022. Armstrong’s 19% stake earned $322 million, boosting the total revenue to $1.3 billion in 2020.
• Coinbase total assets – As of 2021, Coinbase has a total asset of $21.3 billion and gained a net income of $3.62 billion.

Coinbase’s Super Bowl ad

Coinbase stormed the crypto industry with its successful commercial strategy after running a 60-second advertisement during the Super Bowl LVI. The commercial created history as the company’s website crashed after 20 million users hit the official site.

The advertisement propelled the company’s position to new heights and benefitted the company. 

Coinbase FAQs

Wrapping Up

Coinbase has significantly boosted its performance over the years and has become the leading cryptocurrency exchange in the United States. The company’s user-friendly interface allows traders to trade cryptocurrencies without breaking a sweat.

Although Coinbase is a decentralized exchange, its founders have made a lot of effort to make the trading experience seamless and efficient. However, the company’s pricing structure may seem outrageous, and its customer support department requires improvement.

In short, Coinbase is a perfect crypto exchange platform for anyone who has a risk appetite and wants to explore cryptocurrencies.