Coinbase Closes Which Cost It an Estimated $100 Million in 2018

Coinbase is shutting down the startup which it acquired for an estimated $100 million last year. The email service allowed senders to pay users in digital currency for replying to commercial messages or completing tasks.

Also Read: Coinbase Acquires for an Estimated $100 Million

Coinbase Says Goodbye to

San Francisco-based cryptocurrency trading platform Coinbase has reportedly decided to shut down (formerly known as 21 Inc). The exchange notified clients of the decision via email, explaining that it is “sunsetting to focus exclusively on Coinbase Earn,” The Block reported on Monday. Users of the service were given about two months’ notice until they have withdraw all their funds.

The company also added that it plans on “scaling Coinbase Earn even further by adding more campaigns to the platform, to connect more blockchain networks with engaged crypto users.” Coinbase Earn is a service meant to incentive people to learn more about new cryptocurrencies. The educational platform rewards users with tokens for completing various tasks such as watching videos and taking quizzes on crypto-related content.

Coinbase Closes One Year After $100M Acquisition

$100 Million Acquisition

The idea behind was allowing senders to pay users in digital currency for replying to emails and completing tasks, which is meant to benefit both normal email users and large-scale senders of commercial emails. A normal email user could earn crypto by replying to emails and also use the price of inbound emails as a signal to rank them by importance. Senders of commercial email could use to pay users to get them to reply to messages regrading subjects such as recruiting, fundraising, and marketing which most users just filter as spam under normal circumstances.

Coinbase only announced that it had acquired in April 2018. The two sides have not revealed the financial details of the deal but it wa estimated at the time to be just above $100 million. This was considerably lower than previous valuations for the startup and caused a push-back from investors according to Silicon Valley media reports.

As part of the acquisition, Earn’s co-founder and CEO Balaji Srinivasan joined Coinbase as the company’s first Chief Technology Officer (CTO). promised its users at the time that it was not ”going down” or drastically changing. In fact, the company claimed that the product was only going to get “bigger and better” as a consequence of this deal.

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