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Garry Tan, a well-known angel investor, spent $300,000 in Coinbase in 2013, and the company is now worth $2.4 billion thanks to today’s COIN listing.
Garry Tan, the founder of Initialized Capital and a prominent angel investor, was among the first to provide seed financing to Coinbase eight years ago.
Tan’s $300,000 investment in Coinbase in 2013 is now worth $2.4 billion, thanks to today’s much awaited Nasdaq listing of Coinbase’s COIN portfolio.
Coinbase listed on the Nasdaq on April 14 at $381 per share, making it one of the year’s most anticipated stock exchange listings in the United States.
How did $300,000 become $2.4 billion?
Tan invested in Coinbase in 2013, when it was uncertain if Bitcoin will be accepted as a global currency and proven store of value.
There were few reliable exchanges at the moment, and the few that did exist were often compromised. Tan’s investment occurred prior to the massive Mt. Gox hack, which resulted in the theft of billions of dollars in Bitcoin.
And after its arrival, Coinbase was not always on the rise. According to Coinbase co-founder Fred Ehrsam, the firm faced various challenges between 2014 and 2017.
“Over time, crypto grew, and so did the company. A simple #Bitcoin wallet evolved into individual and institutional products to support a blossoming cryptoeconomy. 2 nerds who met on the internet (yes, @brian_armstrong and I met on @reddit ) turned into a company of 1000+. There was serious hardship. In the 3 years between 2014 and 2017, the outside world thought crypto was dead. Over a third of employees left. Yet crypto kept building. @ethereum came on the scene and showed that crypto native applications were possible, opening up a whole new world of possibilities.”
Even if the listing fails to impress, Coinbase has alluring financials
Coinbase is the first publicly traded global cryptocurrency exchange in the United States stock market, and its listing on Nasdaq now gives institutional investors access to the crypto field. Even if the listing struggles to succeed on the first day, the firm has solid financials and consumer metrics.
1) Today, an exchange will list an exchange.
One of them:
–lists innovative assets
–allows users to onboard
–has a mobile app, website, and API
–made $1b last quarter
The other one is NASDAQ.
— SBF (@SBF_Alameda) April 14, 2021
Coinbase made $1 billion in the last quarter and has more customers than any financial institution in the United States except JPMorgan, making it a particularly appealing trade for conventional financial market buyers.