Coinbase to Acquire the Cryptocurrency Start-up Zabo
Zabo announced that it would join the digital asset platform Coinbase. However, the statement did not specify the terms of the deal, and the amount paid remains unrevealed.
Coinbase’s New Acquisition
According to a blog post, Zabo – a Dallas-based cryptocurrency data aggregator – will become part of the Nasdaq-listed exchange Coinbase. The Co-Founders of the start-up Christopher Brown and Alex Treece, commented:
“We are very excited to join Coinbase, which has done more than perhaps any other company in advancing the mission of bringing cryptocurrency mainstream.”
The two executives revealed that the deal should be closed in a matter of weeks but did not inform how much Coinbase will pay for the acquisition. They added that working side-by-side with the trading venue would be beneficial for many people dealing with virtual currencies as they would have the necessary financial freedom:
“We look forward to working as part of Coinbase to increase economic freedom for billions of people.”
Zabo is founded in 2018 in Dallas, Texas, and is an application programming interface (API) for connecting to any digital asset exchange, wallet, account, or protocol. Furthermore, it allows cryptocurrency users to share data, including balances, deposit addresses, and transaction histories.
Coinbase Started Trading on Nasdaq
The giant cryptocurrency exchange Coinbase marked a significant milestone this year as it became the first major trading venue to have its shares publicly traded.
According to the official website of Nasdaq, COIN shares’ opening price was $381 giving. At that time, the market valuation stood at around $100 billion. It’s also worth noting that the opening price was significantly higher than the initial reference price of $250. However, the stocks price has dropped since then and currently trades around $240.
Shortly after its direct listing, Coinbase announced intentions to raise $1.25 billion to speed up its growth after its share price started sliding.
The platform outlined that the offering would be private and accessible only to institutional investors who comply with Rule 144A promulgated under the Securities Act of 1933. It means that only those managing at least $100 million in securities issued by other companies can apply.
Additionally, Coinbase continued its expansion in April as it agreed to acquire Skew – the popular analytics company providing various data about cryptocurrencies.Source