Venture capital investments in cryptocurrencies: Coinbase Ventures
Coinbase Ventures logo

Venture capital investments in cryptocurrencies: Coinbase Ventures


When small  individual investors join the investment party, they are often considered “dumb money” (do not worry, I proudly consider myself to be one of them) as the “smart money” (venture capital funds and large institutional investors) already has taken most of the profit for themselves. Well, if they are supposedly so smart, which coins have they selected? And could we learn something from them? In this article: Coinbase Ventures.

What is Coinbase Ventures?

Launched in 2018, Coinbase Ventures is the venture capital arm of Coinbase, which is one of the largest cryptocurrency exchanges in the world. At this point, Coinbase should be very familiar to you (if not, I suggest you take a quick look on coinbase.com), but did you know they also provide financing to promising projects in the crypto space? Since 2018, Coinbase Ventures has invested in several start-ups and protocols. Although Coinbase said in the original blogpost it would not offer “favoured asset status” to any of its investments, it certainly does not hurt them being associated with Coinbase.

In which cryptocurrencies has Coinbase invested?

1. Compound (listed on Coinbase)

Fed up with earning pennies on your savings in the bank? Compound is a decentralized protocol which sets interest rates based on supply and demand. With the app, you can lend or borrow several cryptocurrencies, including the own Compound coin.

Do you want more information? Look on: https://compound.finance/

2. UMA (listed on Coinbase)

UMA is an open-source protocol that allows developers to build their own synthetic assets and other financial contracts. Using its “priceless” contract templates and data verification mechanism, it is able to guarantee security while minimizing oracle usage.

Do you want more information? Look on: https://umaproject.org

3. Celo (listed on Coinbase)

Celo aims to make financial services accessible to everyone with a mobile phone, thereby helping unbanked communities globally. Its coin is a utility and governance asset for its community.

Do you want more information? Look on: https://celo.org

4. Unlock

A protocol to manage access to content, apps or real-life events, it allows individuals to monetize their creations in a decentralized way. Using the recently launched Unlock Discount Token, consumers can “unlock” memberships to their favourite creators.

Do you want more information? Look on: https://unlock-protocol.com

5. Reserve

A stablecoin backed by a flexible pool of other stablecoins, specifically designed to reduce the risk of digital currencies through diversification. For the users of its app, however, Reserve just allows them to buy, hold and spend “digital” US dollars.

Do you want more information? Look on: https://reserve.org/

6. Spacemesh

A decentralized platform using a “blockmesh” rather than a blockchain. It also does not use a Proof of Work protocol, but a "Proof of Space" protocol. This protocol, according to the developers, consumes significantly less energy and is ASIC-resistant.

Do you want more information? Look on: https://spacemesh.io/

7. Goldfinch

The Coinbase Ventures website describes this protocol as “a lending protocol for underserved global markets”. The website does not provide more information (at time of writing).

Look on: https://goldfinch.finance

8. Rally

A social token protocol that allows creators to have their own branded currency. Their biggest fans can then buy these coins and receive personalized rewards in return.

Do you want more information? Look on: https://rally.io/

9. The Graph (listed on Coinbase)

A self-described “Google” for the blockchain, it is a decentralized protocol for indexing and querying the data on blockchains. As anyone can build open APIs, this data then becomes easily accessible for everyone.

Do you want more information? Look on: https://thegraph.com/

 

Aside from cryptocurrencies, Coinbase Ventures has invested in several other crypto start-ups and platforms. You can find all their investments here.

Did I make a mistake or is there something you would like to add? Let me know in the comments! If you enjoyed this post, a like or a tip are also always appreciated!


Guillaume De Bois
Guillaume De Bois

As an engineer and economics student, I am passionate about how new technologies can be commercialized. For those not a fan of the French, you can just call me Guy. It is a pen name anyway.


The commercialization of crypto
The commercialization of crypto

With blockchain gaining mainstream media exposure and institutional investors pouring into crypto, this blog discusses individual and industrial adoption of blockchain technologies.

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