April 7, 2018 - CNBC
Popular cryptocurrency exchange Coinbase is planning to launch a platform for early-stage investments called Coinbase Ventures. This means that Coinbase may invest in direct competitors.
Coinbase's president and COO Asiff Hirji announced on CNBC this Thursday this possible venture in that "We're going to invest off our balance sheet into crypto companies [more specifically] in companies that are in the space and are aligned with our values".
The Coinbase Index is basically the DOW Jones of the crypto world and will track four of the worlds biggest cryptocurrencies. According to the company, any profits generated by its venture fund will be "de minimis". This means no instant satisfaction or return on your money. More likely you will see money invested into the fund to grow in its seed-stage investments.
Emilie Choi, Head of Corporate and Business Operations at Coinbase announced on April 5th that the goal of the fund (at least in the beginning) is to "help the most compelling companies in the space to flourish... This means we don't have the strategic requirement of formalizing partner relationships with such companies, as some corporate venture programs do."
This means Coinbase Venture operations will focus only on building strong relationships with its clients in order to spur on the development of the total cryptocurrency ecosystem.
Coinbase has a strong alumni network, so it will be interesting to see if this move towards expansion and maturation will be a positive or negative outcome for Coinbase.
More information will be posted as it becomes available.