|Type of business||Private|
|Founded||July 2, 2011|
|Headquarters||San Francisco, California, U.S.|
|Area served||32 countries [non-primary source needed]|
|Products||Bitcoin, Bitcoin Cash, Ethereum, Litecoin, exchange of digital assets|
|Alexa rank||219 |
|Users||13,300,000 (November 2017)|
Coinbase is a digital currency exchange headquartered in San Francisco, California. They broker exchanges of Bitcoin (?), Bitcoin Cash, Ethereum (?), Litecoin (?) and other digital assets with fiat currencies in around 32 countries, and bitcoin transactions and storage in 190 countries worldwide.
Coinbase was founded in July 2011 by Brian Armstrong and Fred Ehrsam. It enrolled in the Summer 2012 Y Combinator startup incubator program. In October 2012, the company launched the services to buy and sell bitcoin through bank transfers. In May 2013, the company received a US$5 million Series A investment led by Fred Wilson from the venture capital firm Union Square Ventures. In December 2013, the company received a US$25 million investment, from the venture capital firms Andreessen Horowitz, Union Square Ventures (USV) and Ribbit Capital.
In 2014, the company grew to one million users, acquired the blockchain explorer service Blockr and the web bookmarking company Kippt, secured insurance covering the value of bitcoin stored on their servers, and launched the vault system for secure bitcoin storage. Throughout 2014, the company also formed partnerships with Overstock, Dell, Expedia, Dish Network, Time Inc. to power accepting bitcoin payments. The company also added bitcoin payment processing capabilities to the traditional payment companies Stripe, Braintree, and PayPal.
In January 2015, the company received a US$75 million investment, led by Draper Fisher Jurvetson, the New York Stock Exchange, USAA, and several banks, "apparently the first time any traditional financial institutions have taken direct stakes in a bitcoin enterprise". Later in January, the company launched a U.S.-based bitcoin exchange for professional traders called Coinbase Exchange. In May 2015 there was controversy around reports on Reddit that Coinbase had asked a user to describe how they were spending their bitcoin; the Daily Dot reported on the matter, and received a statement from CoinDesk stating: "We don't comment on specific cases, however, Coinbase is required to monitor activity on its platform in accordance with the Bank Secrecy Act and other regulation governing all money services business (MSB)."; the Daily Dot noted that CoinDesk is obligated to comply with the Bank Secrecy Act, which prevents money laundering, in order to operate as an exchange. Coinbase began to offer services in Canada in 2015, but in July 2016, Coinbase announced it would halt services in August after the closure of their Canadian online payments service provider Vogogo.
On 29 March 2016, Coinbase was listed by UK-based company Richtopia at number 2 in the list of The 100 Most Influential Blockchain Organisations. In May 2016, the company rebranded the Coinbase Exchange, changing the name to Global Digital Asset Exchange (GDAX) and offering Ether, the value token of Ethereum, for trade on its professional trading exchange service. In July 2016, they extended the support to their "Coinbase" retail exchange by adding Ether as only the second digital currency offered to retail customers. On January 17, 2017, Coinbase obtained the BitLicense from the New York State Department of Financial Services (DFS), which authorizes the company continuing virtual currency business operations in New York. On March 2017, Coinbase received from the New York State Department of Financial Services (DFS) the approval to offer trading of Ethereum and Litecoin currencies in New York.
On August 10,2017, Coinbase has announced it has raised $100 mln in Series D funding.
On October 12, 2017, Coinbase announced instant bitcoin, ethereum and litecoin purchases for users using a U.S. bank account. Previously, users purchasing through a bank account had to wait several days before receiving digital funds. On November 29, 2017, Coinbase was "ordered to report 14,355 users to the IRS... all users who have bought, sold, sent, or received more than $20,000 through their accounts in a single year". On December 09, 2017 the Coinbase app became the most downloaded app in the Apple App Store (iOS).  On December 20, 2017, Coinbase launched Bitcoin Cash support, and just hours after opening order books stopped trading the virtual currency, noted that it started investigating possible insider trading associated with Bitcoin Cash's launch. In January 2018, Coinbase hired Tina Bhatnagar, the former former vice president of operations and user services of Twitter, as the Vice President of of operations and technology.
On Febtuary 16, 2018, Coinbase has admitted that some customers were erroneously overcharged for credit and debit purchases of crypto. the problem was initiated when banks and card issuers changed the merchant category code (MCC) for crypto purchases earlier this month. This meant that crypto payments would now be processed as "cash advances," meaning that banks and credit card issuers could begin charging customers "cash advance" fees for crypto purchases. Any customers who purchased crypto on their exchange between Jan. 22 and Feb. 11 could have been affected. Visa had at first shifted the blame to Coinbase, telling the Financial Times on Feb. 16 that it had "not made any systems changes that would result in the duplicate transactions cardholders are reporting." However, the latest statement from Visa and Worldpay on the Coinbase blog clarifies: "This issue was not caused by Coinbase."
Coinbase has two core products: a Global Digital Asset Exchange (GDAX) for trading a variety of digital assets on its professional asset trading platform, and a user-facing retail broker of Bitcoin, Bitcoin Cash, Ether, and Litecoin for fiat currency. It also offers an API for developers and merchants to build applications and accept payments in both digital currencies. As of 2018 , the company offered buy/sell trading functionality in 32 countries, while the cryptocurrency wallet was available in 190 countries worldwide.
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