Coinbase Building Platform to Help Crypto Startups Launch Tokens, Raise Cash
The platform will "hand hold" hopeful crowdfunders through the token issuance, custody, development and governance process, according to CEO Brian Armstrong.
Sep 1, 2020 at 7:30 p.m. UTCUpdated Sep 14, 2021 at 9:50 a.m. UTC
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Coinbase is developing a token crowdfunding platform for crypto startups looking to break into the space.
- CEO Brian Armstrong said on an Aug. 11 podcast with asset manager and host Patrick O'Shaughnessy that his exchange is indeed "working on" the platform first hinted last September – to be called "Coinbase Launch or something like that."
- Armstrong told O'Shaughnessy his product will streamline clients' token launches from custody to smart contract creation to governance to distribution. It will "hand hold people through the process," he said on the podcast.
- Coinbase is already a hub for U.S. crypto investing and has a growing lineup of crypto services. Adding what is commonly known as an Initial Exchange Offering platform to its mix would likely beat out existing IEO platforms and attract new prospective token crowdfunders to Coinbase.
- That's how Armstrong seems to feel, at least. He told O'Shaughnessy the platform "could be a huge unlock for the crypto economy" and projected it could power "a thousand new startups."
- Coinbase is also reportedly eyeing a tokenized capital raise. It is reportedly preparing for an initial public offering (perhaps using blockchain-based tech) in mid-2021, according to Fortune.
- A spokesperson for Coinbase declined to elaborate on Armstrong's comments.
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