Jump to content
  • Sky
  • Blueberry
  • Slate
  • Blackcurrant
  • Watermelon
  • Strawberry
  • Orange
  • Banana
  • Apple
  • Emerald
  • Chocolate
  • Charcoal

Welcome to your community. We would like you to take a minute and read our newcomers guide.

Sign in to follow this  
blakicious

Coinbase acquired Blockspring

Recommended Posts

Coinbase recently acquired Blockspring (a startup that deals with collecting and processing data). Unlike how other big acquisitions are publicized, Blockspring announced this on their own blog. Also, Coinbase made no announcement of this in any way. Blockspring had no choice but to pivot early on, regarding the fact that it initially planned to focus on severless solutions before Amazon launched Lambda in the same niche as part of their Amazon web services in November 2014, which came a few months after the establishment of Blockspring.

Blockspring's model specifically focused on communication without servers. The startup, considering the recognition of Amazon, had to reconsider its business model after the launch of Lambda.

 

Forced Pivot

Blockspring then focused on recruitment and marketing, made use of a subscription model and as at the time it was acquired, it claimed to work with thousands of companies.

That Coinbase acquired Blockspring looks interesting, due to the fact that SV Angel and A16z, two firms that invested in Blockspring also invested in Coinbase. It seems these common investors have played a major role in making the deal a success. 

 

Blockspring still Independent

Blockspring, on its blog, explained that it will keep performing its operations as an independent company, and referred to joining Coinbase as a "no brainer." It also revealed that the exchange will play a major role in establishing an open financial system and that they can now make something greater then we could on our own.

The company also said that they will keep offering their products as usual to all their customers.

 

Coinbase's first acquisition in 2019

This is the first main acquisition made by Coinbase in 2019, and a good number of people believe that this move was made in order to acquire talent instead of tapping into the customer base of Blockspring.

Coinbase experienced a dramatic increase in its customer base last year as a result of the large number of acquisitions it made in 2018. Importantly, Brian Armstrong (CEO of Coinbase) during an interview with Bloomberg on 14th August 2018, revealed that 50,000 new users daily signs up on the crypto exchange.

Keystone Capital (a securities broker) was the most recognized acquisition made by Coinbase in 2018, which many perceived was a strategy for them to successfully become a fully regulated broker-dealer under the SEC. Last year April, Coinbase launched Coinbase Ventures (its own crypto-startup incubator) saying that "our goal is simply to help the most compelling companies in the space to flourish."

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×