As the Bitcoin is rallying, Coinbase raises another funding
Get all the details about Coinbase raising findings as well as the Bitcoin rallying on in the market? Read along for more info.
Bitcoin Startup Coinbase Is Raising Another $50 Million
Seeking to raise another round of funding is the Bitcoin startup Coinbase thereby adding $ 50 million in new capital before it’s finished whereas according to sources the company has faced headwinds in the fundraising process limiting the total amount raised. Reliable sources quote that Coinbase raising $ 50 million of new capital is less than a year after its last financing, a $ 25 million Series B led by Andreessen Horowitz which comes as a pretty big jump in quite a short period that would once again make Coinbase the best-capitalized Bitcoin startup after recent $ 30 million funding rounds for BlockChain and BitPay.
Along with this one source tells us that Coinbase has started what is an even more ambitious goal during the fundraising process, thereby initially seeking to raise to $ 150 million. What then has happened as sources say Coinbase has faced headwinds due to regulatory overhang in the US as well as more questions regarding the volatility of Bitcoin as the price of cryptocurrency fallen dramatically. It is found that there is then on the regulatory side a much usual uncertainty about how different governments seek to handle cryptocurrencies overtime that hasn’t frankly stopped many of those investors away from pouring money into the Coinbase or other Bitcoin-based startups to date.
Hearing rumblings from within the Bitcoin community the Coinbase is being looked at closely by certain state and federal regulators in the US. Helping to explain, this might point to the Coinbase’s recent expansion into 13 European countries where each new country presents new regulatory challenges being available in more places thereby helping to mitigate some of those risks that are associated with being dependent on customers within any one market.
Bitcoin volatility meanwhile could also have been a factor Coinbase’s ability to close the massive funding round as the sources say with cryptocurrency trading in the mid - $600s, earlier in the summer as the price has fallen precipitously since then. Been cut by as much as 50 percent it has traded below $400. Most investors would put money which is still bullish on bitcoins over the long term making it easier the case for investment in a startup in the space as the price is rising as opposed to falling.
With a correlation between the price of Bitcoin and the public interest in it, that is higher the bitcoin’s price rises, the more attention the average person affords it with interest leading to higher engagement. Implying a slower influx of new bitcoiners a lower price and perhaps a slimmer funnel for startups battling for domination of particular market niche, which is regardless of Coinbase able to raise more with $ 50 million in fresh capital as the company would be well poised continuing geographic expansion as racing ahead of its market is a separate question.
The Bitcoin Rally Is Real
Bitcoin is back and so strap in friends as spending most of the year in something approaching the doldrums the cryptocurrency is enjoying a strong price rally pushing the values to its highest. Trading for around $ 320 per coin, it is still a mere fraction of its former heights and at the same time picking up some Bitcoin when it dipped below $ 200 earlier this year where the boost is likely to welcome.
Only one metric of many the price of Bitcoin can be employed to gauge the health of the larger ecosystem, where volume, difficulty, and the aggregate hash rate are also useful barometers when however bitcoin’s price does rise it generally enjoys a boost in the public interest. Bitcoin remains a niche product given that it needs just that, more attention.
However after an ocean of capital committed to Bitcoin-related startups was noticed, the market may be in a period of self-correction as BitPay, a Bitcoin payment solution provider has raised more than $ 30 million recently cutting staff, it was noticed. There are however a few things to watch for:
The length of the rally is that it can keep up the current head of the stream or will short term profit taking slow its current rise. Thereby the impact of improving the price of Bitcoin on consumer interest provides that Bitcoin can indeed pick up new adherents with the rally having more than just a trading opportunity, so stay tuned as Bitcoin still chugs along.
While Bitcoin rallies along investors and developers are being targeted as some of the major players in the use case. More people are being attracted to the possibilities of Bitcoin mining.