Crypto Exchanges See Big Demand From Investors: Coinbase Worth $8 Billion

Still, venture capital firms and large investment companies are placing big long-term bets on the crypto market by financing cryptocurrency exchanges.

According to sources, Coinbase will take $250 million in primary money and then receive $250 million in money to buy out existing shareholders, who previously invested in Coinbase at a valuation of $1.5 billion in August of last year.

In merely 14 months, Coinbase more than quadrupled its valuation from $1.5 billion to $8 billion, recording a 10-fold increase in its trading volume and a massive increase in its user base.

As of October, Coinbase supports more than 20 million users and has processed over $150 billion in trades since 2012.Coinbase Growth Update:- added ~5million users in the last 6 months, now have 25mil.

Coinbase previously raised $217 million from ICE / NYSE, Japan's largest bank MUFG, BBVA, IDG Ventures, Y Combinator, Andreessen Horowitz, Garry Tan, Adam Draper, and USV. Upon the finalization of its deal with Tiger Global, Coinbase would have raised $717 million.

The deal between Coinbase and Tiger Global represents the long-term strategy of Coinbase to strengthen the US cryptocurrency exchange market with its compliance-focused approach.

For over five years, many investors in the crypto market have expressed their dissatisfaction towards the lack of selections of cryptocurrencies on the Coinbase trading platform.

In the months to come, Coinbase is expected to actively pursue its recently established strategy to add more cryptocurrencies onto its platform, which will provide regulatory clarity to other exchanges in the market and positive impact the US cryptocurrency sector.

In other markets like South Korea, Japan, and Switzerland, crypto exchanges are raising mega rounds-funding rounds that are worth $100 million or more-to provide various services and products the cryptocurrency market has lacked for many years.

With increasing interest and demand for crypto exchanges by venture capital firms and large investment companies, the infrastructure of the global cryptocurrency market is expected to improve at an unprecedented rate in the months to come.