Notable Investments by Coinbase Ventures in 2023
Coinbase Ventures, known for its investments in the Web3 space, has a particular interest in DeFi projects and Web3 infrastructure. While not all of their investments have been successful, they have made notable investments in 2023. Here are some of them:
1) Alkimiya
Alkimiya is an open-source protocol that provides upfront funding to miners and validators to finance future production. This helps control the risks associated with unpredictable cash flow in DeFi ecosystems. Alkimiya plans to offer a source of cash flow unaffected by the liquidity of DeFi ecosystems by allowing depositors to keep a portion of the revenues from mining and staking activities.
2) Alongside
Alongside is a platform focused on crypto indices. They closed an $11 million seed round led by Andreessen Horowitz and participated in by Coinbase Ventures. Alongside aims to create products for investors to diversify through passive indices. They also launched the Alongside Crypto Market Index ($AMKT), which gives users exposure to the entire crypto asset market through a single token.
3) Rocket Pool
Rocket Pool is a liquid staking protocol that allows users to stake ETH while retaining liquidity. Coinbase Ventures made a strategic investment in Rocket Pool and purchased an undisclosed amount of RPL, Rocket’s native token. Coinbase also participates in Rocket Pool’s Oracle DAO and operates several hundred nodes on the network using ETH from its corporate balance sheet.
4) Terms Labs
Terms Labs is a lending protocol that uses an auction model to support loans with specific interest rates and durations. They raised $2.5 million in seed funding, led by Electric Capital and Coinbase Ventures. Users can borrow and lend at a fixed rate for a fixed period of time by participating in weekly auctions on the protocol.
5) EigenLayer
EigenLayer is a restaking protocol built on Ethereum that helps users restake tokens locked up to validate Ethereum. They raised $50 million in Series A funding, led by Blockchain Capital and including Coinbase Ventures. EigenLayer allows users to reuse these tokens to secure other protocols.
Hot Take: Coinbase Ventures’ Ambitions in Web3
Coinbase Ventures has shown its ambitions in the Web3 space through its investments in various projects. While some of these projects have good potential, it is important to do thorough research and ensure they align with your investment goals. Investing in cryptocurrencies carries high risks, so it is crucial to exercise due diligence.
Note: This article is for informational purposes only and should not be considered financial advice. Invest at your own risk.
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