Aside from being a crypto exchange, Coinbase is easily one of the biggest investors in the Web3 space. Coinbase Ventures has a knack for spotting start-ups and investing in them. We’ve discovered that Coinbase Ventures is mostly interested in DeFi projects and Web3 infrastructure.
Coinbase loves to join early seed or private rounds. But, as with any investment, not all the deals have gone well. So, we recently made a list of some of the notable investments Coinbase has made in 2023. This article is the last part of our list. Here is the first, second, and third part.
1) Alkimiya
Alkimiya was one of the first investments that Coinbase made this year. It raised $7.2 million in funding this year. The round was led by Castle Island Ventures, 1kx, and Coinbase Ventures. The project is an open-source, permissionless protocol. It enables miners and validators to receive upfront funding to finance future production.
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Alkimiya is building permissionless capital markets for blockspace, and we are launching on @avalancheavax Mainnet today 🎉🎉
Here's what you need to know 👇 https://t.co/IKcLEJxbC8
(1/16)— Alkimiya👁️ (@alkimiya_io) March 25, 2022
This system helps to control the risks associated with unpredictable cash flow, which worsens when there is less liquidity in DeFi ecosystems. Alkimiya plans to offer a source of cash flow that is unaffected by the entire liquidity of DeFi ecosystems.
The protocol makes money by letting depositors keep a proportion of the revenues that come from mining and staking activities by block space producers. Blockspace producers are the companies that use a lot of processing power to mine or stake in order to get rewards.
2) Alongside
Alongside is a crypto index-focused platform. The project closed an $11 million seed round led by Andreessen Horowitz (a16z) in February. Coinbase Ventures also took part in the round. The project’s aim is to provide a platform where everyone invests alongside each other. In addition, Alongside seeks to create products for investors to diversify via passive indices.
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Alongside also launched the Alongside Crypto Market Index ($AMKT), which gives users broad exposure to the entire crypto asset market via a single token. You can access this token on several exchanges.
3) Rocket Pool
Coinbase Ventures made a strategic investment in Rocket Pool, a liquid staking protocol, a few months ago. Coinbase purchased an undisclosed amount of RPL, Rocket’s native token, as its investment in the project. Rocket Pool users can still fund new validators and receive rewards, even if they don’t have the required sum needed to pay an Ethereum network validator node on their own.
Rocket Pool brings the power of permissionless, decentralized liquid staking to #Ethereum 🌐
You can now connect to Rocket Pool and liquid stake your ETH with the Exodus #Web3 Wallet 🙌
Big thanks to @Rocket_Pool for the support 🤝 pic.twitter.com/beuysR2V6l
— Exodus – Crypto Wallet (@exodus_io) October 6, 2023
Coinbase described Rockpet Pool as “a leading liquid staking network on Ethereum, allowing users to stake ETH while retaining liquidity.” In addition to its investment, Coinbase also participates in Rocket Pool’s Oracle DAO. It noted that it would use ETH from its corporate balance sheet to “operate several hundred nodes on the Rocket Pool network.”
4) Terms Labs
Terms Labs is a lending protocol that leverages a distinct auction model to support loans with specific interest rates and durations. The project raised $2.5 million in seed funding, led by Electric Capital and Coinbase Ventures.
Two Months since Mainnet Launch, Term finance has over $5m in total loans cleared and surpassed $5m in TVL. pic.twitter.com/1AzUxktVXs
— Term Labs (@term_labs) October 5, 2023
Terms seek to deploy a scaling lending solution to the market. As such, users can borrow and lend at a fixed rate for a fixed period of time. They simply have to participate in weekly auctions on the protocol.
5) EigenLayer
EigenLayer is the first restaking protocol built on Ethereum. And one of the most popular of all the investments on this list. The project raised $50 million in Series A funding led by Blockchain Capital. Others included Coinbase Ventures, Polychain Capital, Hack VC, and Electric Capital.
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Is decentralization your passion? Want to contribute to Ethereum’s consensus and EigenLayer restaking?📝 We’re excited to roll out the EigenLayer Solo Staker Working Group and Intake Questionnaire! We're eager to understand your…
— EigenLayer (@eigenlayer) October 13, 2023
EigenLayer helps users “restake” tokens that are locked up to validate Ethereum. This way, users can reuse these tokens to secure other protocols. Rather than building trust, EigenLayer helps developers consume trust.
Conclusion
This list shows Conbase Venture’s ambitions in Web3. Some of the projects listed have good potential. However, you should invest in what you’ve researched. And ensure it aligns with your goals.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.
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