Coinbase’s Echo acquisition is fuelling excitement among crypto investors.
On Tuesday, the US-based exchange announced it had acquired the early stage investing platform for $375 million in a cash and equity deal.
The tie-up will likely unlock more and higher-quality opportunities, Amir Hajian, a researcher at crypto market maker Keyrock, told DL News.
It’s “a major win for users,” Hajian said. “Coinbase’s 100 million plus user base creates a powerful incentive for projects to launch there.”
Echo is one of several platforms that lets individuals invest in early-stage crypto ventures that are usually reserved for institutional investors.
“You can let specific communities invest a ranged amount at cheap prices,” Kasper Vandeloock, an angel investor and adviser to several crypto trading platforms, told DL News. “Normally it’s kind of the ethos to make Echo rounds cheaper as it’s for the community.”