Coinbase’s new venture capital fund has announced a strategic investment in Compound, a startup that is building money market accounts for cryptocurrency investors.
Compound is the first project to receive venture funding from Coinbase as part of the company’s new efforts for fostering blockchain innovation. As CCN reported, Coinbase announced the new venture fund to incubate early-stage startups in the exploding industry.
Coinbase’s funding is part of a larger $8.2 million seed funding round, which pools other backers including Bain Capital Ventures, Andreessen Horowitz and Polychain Capital, with participation from Transmedia Capital, Compound Ventures, Abstract Ventures, Danhua Capital.
While other coin and token projects have debated ways to generate interest or dividend income, Compound has run with the idea. In a blog update, Salil Deshpande, Managing Director at Bain Capital Ventures, he states that current lending solutions for cryptoassets “are not good enough: they are either centralized and have substantial counterpart risk, or require robust order books for each type of cryptoasset, which generally do not exist.”
Compound’s mission is to put cryptoassets to work that now “sit idle on exchanges and in wallets, yielding no interest,” according Founder Robert Leshner in a blog update about the funding announcement.
“…when Compound launches it’s [sic] first money markets on the Ethereum blockchain, individuals, institutions and applications will earn interest on Ether, stablecoins and utility tokens, with complete liquidity — similar to the overnight rate for dollars and government currencies.”
The core technology behind Compound is a decentralized blockchain infrastructure that is centered around a series of open-source smart contracts. As part of the smart contracts, the interest rates for each asset adjust dynamically in response to the borrowing demand for that asset. An algorithm makes these adjustments in real time, according to the project’s whitepaper.
Compound hopes to attract borrowers such as hedge funds, sophisticated speculators, and other Ethereum applications.
As Compound’s technology aligns closely with Coinbase’s entrenched status as a company that is revolutionizing traditional finance, it is no small wonder why it has received the firm’s backing. The company’s target market of institutional investors is in line with Coinbase’s recent rolling out of a suite of tools for only these clients, as CCN reported on May 15.
Compound’s core technology also eases reporting, since each money market is transparent, auditable, and completely predictable. Coinbase itself has also worked hard on institutional-grade reporting as part of efforts for becoming an SEC-regulated brokerage.
Coinbase Suffers EOS Network Delay, But Block validators See None
- Coinbase is a global platform that enables users to buy, sell, transfer and store digital assets such as cryptocurrencies based on the U.S.
- EOS sends are temporarily disabled completely and EOS receives are delayed.
- EOS validators claims the same that EOS Network is fully operational.
What is Coinbase?
Coinbase is a global platform that enables users to buy, sell, transfer and store digital assets such as cryptocurrencies based on the U.S. It is the most popular platform by many to buy cryptocurrencies like Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH). Coinbase serves as a wallet too, through which it helps users to store cryptocurrencies. The application currently operates an exchange of Bitcoin, Litecoin, Ethereum and other digital assets with fiat currencies in more than 32 countries.
EOS Network: Major Outage
Recently Coinbase tweeted from its twitter handle @CoinbaseSupport
the tweet was about the announcement of its degraded performance of the EOS network and EOS sends are temporarily disabled completely and EOS receives, on the other hand, maybe delayed. The tweet assured that the buying and selling of EOS are functioning normally within Coinbase and it will update customers when the status will jump back to normal.
The status of EOS network can be seen in Coinbase official website, in which the EOS is tagged as Major Outage and showing Send and receives are delayed. The send and receives in the EOS is referred to as sending and receiving EOS currency using the EOS network which usually happens in transferring and transactional processes.
This is not the first time that Coinbase is suffering a problem from EOS, In the same year February 14 and 17, it has reported similar failures and rebounded back to normal from the major outage.
What validators has to say on this issue?
EOS Nation, which is known to be one of three largest EOS block validators had admitted that EOS survived many micro-forks and missed the blocks on February 20 but claims that the network is working properly. EOS New York also one of the big EOS validators claims the same that EOS Network is fully operational and that a problem is could be from the side of Coinbase itself.
EOS New York validators also commented on Coinbase’s Reddit message that the network is fine and the problem of relaying is because of the internal infrastructure on EOS.
It has been noted that no other organizations reported the same problem as Coinbase. The validators asked Coinbase to give more details about the problem to assist them and provide any support from them for free. The Comment has not been responded by Coinbase yet.
Coinbase is Still Investigating Degraded EOS Performance After 3 Days
A few years ago, Ethereum would get clogged up every time a popular ICO took place.
Today, the EOS blockchain is seemingly operating at full capacity.
More specifically, this incident originally began three days ago, according to Coinbase.
Today, the company claims that it is still investigating the incident.
So far, no official explanation has been provided as to what may be causing transaction delays.
There was the launch of VOICE, a new social platform built on top of the EOS blockchain.
Even so, it appears that this project is getting a lot of backlash due to it requiring users to verify their identity.
As such, it seems unlikely that this project is causing any big delays at this time.
Coinbase also tends to note degraded performance when the network is working just fine.
Since no major issues have been reported by users, it would appear that EOS is doing just fine.
Kyber Network (KNC) Coming to Coinbase Pro: What Might Be Added Next?
This week, San Francisco-based cryptocurrency exchange giant Coinbase announced that KNC, the native asset of the Kyber Network liquidity aggregator project, would be supported on its advanced trading platform, Coinbase Pro, starting on February 24th.
The news immediately sent a wave of excitement through the Kyber community, as Coinbase is one of the largest and most reputable crypto brands in the world and can thus further legitimize and help introduce the DeFi liquidity provider to new audiences.
“The Kyber protocol aggregates liquidity from a wide range of reserves, powering instant and secure token exchange in any decentralized application,” Coinbase explained.
The exchange has stayed mum for now on if or when KNC will be listed on Coinbase.com and its retail-facing mobile apps, but considering the trajectories the company has taken with other tokens in recent months, it seems likely that such support is indeed on the horizon.
Now the question on many cryptoeconomy stakeholders’ minds is which projects might enjoy the fabled “Coinbase Bump” next?
What We Know
Here, it’s worth noting that Coinbase’s various arms will always undoubtedly be disparate in their crypto offerings. For instance, Coinbase Custody, the exchange’s enterprise unit, will likely support a wider array of tokens than Coinbase.com in perpetuity.
Even still, the exchange has openly revealed the projects it has generally considered for listing on several occasions, and the tokens that Coinbase lists on one arm, like Coinbase Pro, can signal the interest it has in doing so on another, like Coinbase.com.
Tokens of Interest
Coinbase has made good on listing more than a handful of the tokens it has publicly admitted to being interested in. Though there are plenty of other projects that may still be on the slate.
Back in the fall of 2018, the U.S. exchange made waves when it revealed it was considering adding support for 31 new cryptocurrencies.
Some of those projects have since hit the exchange’s books, including XRP, EOS, Tezos (XTZ), Stellar (XLM), Augur (REP), Chainlink (LINK), and the Dai stablecoin.
However, other notable projects from that lot that Coinbase could still be considering to further support in the foreseeable include the following:
- Cardano (ADA)
- Enjin (ENJ)
- Golem Network (GNT)
- Decentraland (MANA)
- Maker (MKR)
- Status (SNT)
One year later, Coinbase confirmed it was considering adding further support for another batch of tokens, this time around being Algorand, Cosmos, Dash, Decred, Ontology, Waves, and two Binance Launchpad projects in Harmony and the Matic Network.
“Over time we expect our customers around the world will have access through Coinbase to at least 90% of the aggregate market cap of all digital assets in circulation,” the exchange said in a blog post at the time.
Since then, the exchange has added Cosmos’s native ATOM token to both Coinbase Pro and Coinbase.com. Furthermore, in October 2019 the company also revealed that Coinbase Custody planned to support the Orchid (OXT), Solana (SOL), and Telegram Open Network (GRM) projects.
Orchid was listed across all Coinbase’s arms in December 2019, suggesting the same trajectory might be in store for SOL and GRM.
Coinbase Now a Principal Member of Visa
In other Coinbase news, the exchange announced on February 19th that Visa had approved the unicorn startup as a principal member, making it the first crypto-native company to have earned such approval from the traditional payments powerhouse.
“Visa membership will enable us to further improve the customer experience, making it easier to spend cryptocurrency in everyday situations,” noted Coinbase, which launched their Coinbase Card debit card offering in 2019.
Thus as Coinbase continues to expand its token offerings, Coinbase Card users should find it increasingly easy to spend a variety of cryptocurrencies in mainstream contexts.