Coinbase, the largest platform for trading bitcoins and other cryptoactives in the United States, announced this Friday that it is investing US$ 500 million of its own cash in the acquisition of cryptocurrencies.
Also according to the company, which in April became the first exchange in the world to list shares on Nasdaq, a portion of 10% of quarterly earnings will be invested in cryptoactives, to compose a “crypto portfolio” of the company.
According to a post by CFO Alesia Haas on the company’s blog, Coinbase targets are “ethereum, assets based on ‘proof of stake’, DeFi tokens and many other cryptoactives with trading made available on our platform”.
Her mention of “DeFi tokens” refers to decentralized finance protocols that replicate traditional financial services such as loans, insurance, syndicates and mortgages, anchored in cryptocurrencies and through distributed registry technologies, the popular blockchains (read more about DeFi here).
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The citation to “assets based on ‘proof of stake’” refers to the modality of validation of the cryptoactive in its respective blockchain.
Bitcoin, for example, is based on the “proof of work” system, which requires prior validation of all transactions carried out and has the disadvantage of low technical and operational scalability, high costs and high energy costs in the mining (as the process of validating and recording transactions in blockchains is known; read more).
The cryptocurrency ether (also known as ethereum), on the Ethereum blockchain, uses the “proof of stake” system, which has proven operational, financial and energy capacity advantages.
Coinbase President (CEO) Brian Armstrong had unveiled the company’s plan earlier this week, saying he expects crypto allocation to grow as the market develops. It also signaled an intention by the company to diversify its services and operations involving crypto.
Coinbase — Photo: Disclosure