Coinbase Global, Inc. is a publicly traded American company that operates a cryptocurrency exchange platform. It is the largest cryptocurrency exchange in the United States by trading volume. Founded in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase is a distributed company with a remote-first workforce. The company's decision to close its San Francisco headquarters in 2020 and transition to a fully remote model reflects a broader trend among tech companies in response to the COVID-19 pandemic.
June 2012: Brian Armstrong and Fred Ehrsam found Coinbase
Coinbase was founded in June 2012 by Brian Armstrong, a former Airbnb engineer. Armstrong joined the Y Combinator startup incubator program and received $150,000 in funding. Fred Ehrsam, a former Goldman Sachs trader, later joined as co-founder.
October 2012: Coinbase launches bitcoin buying and selling services
In October 2012, Coinbase launched its services that allowed users to buy and sell bitcoins through bank transfers. This was a significant step in making cryptocurrency more accessible to the general public.
2012: Coinbase founded
Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam. The company operates a cryptocurrency exchange platform and is the largest in the U.S. by trading volume.
May 2013: Coinbase secures $5 million Series A investment
In May 2013, Coinbase received a $5 million Series A investment led by Fred Wilson from the venture capital firm Union Square Ventures. This funding was vital for the company's early growth and development.
January 2014: Coinbase Global, Inc. incorporated in Delaware
In January 2014, Coinbase Global, Inc. was incorporated in Delaware as a holding company for Coinbase and its subsidiaries. This corporate reorganization was completed in April 2014.
January 2015: Coinbase receives $75 million investment and launches Coinbase Exchange
In January 2015, Coinbase secured a $75 million investment, led by Draper Fisher Jurvetson, the New York Stock Exchange, USAA, and several banks. Later in the month, the company launched Coinbase Exchange, a U.S.-based bitcoin exchange for professional traders.
May 2016: Coinbase rebrands and adds Ether support
In May 2016, Coinbase rebranded its Coinbase Exchange to Global Digital Asset Exchange (GDAX). In July, they added retail support for Ether and announced a halt in services in Canada due to the closure of Canadian online payments service provider Vogogo.
March 2017: Coinbase obtains BitLicense and licenses for Ethereum and Litecoin
In March 2017, Coinbase obtained the BitLicense and was licensed to trade in Ethereum and Litecoin by the New York State Department of Financial Services (DFS). This allowed the company to expand its offerings and comply with state regulations.
February 11, 2018: Coinbase Overcharging Issue
On February 16, 2018, Coinbase admitted that customers who purchased cryptocurrency between January 22 and February 11, 2018, might have been overcharged due to merchant code changes by banks and card issuers.
February 16, 2018: Coinbase Overcharging Issue
On February 16, 2018, Coinbase admitted to overcharging some customers for crypto purchases due to changes in merchant category codes by banks and card issuers. Initially, Visa blamed Coinbase, but later clarified that Coinbase was not responsible.
February 23, 2018: Coinbase informs customers about IRS data handover
On February 23, 2018, Coinbase informed approximately 13,000 affected customers that it would provide their taxpayer ID, name, birth date, address, and historical transaction records from 2013 to 2015 to the IRS within 21 days, in compliance with a court order.
March 2018: Customer Complaints Surge
In March 2018, Quartz reported a significant increase in monthly customer complaints against Coinbase, citing official Consumer Financial Protection Bureau data. The company responded by increasing its customer service staff.
March 26, 2018: Coinbase announces support for ERC-20 tokens
On March 26, 2018, Coinbase announced its intention to add support for ERC-20 tokens, a significant move to expand the range of supported assets on its platform.
April 5, 2018: Coinbase announces venture fund
On April 5, 2018, Coinbase announced the formation of Coinbase Ventures, an early-stage venture fund focused on investing in blockchain and cryptocurrency-related companies.
2018: Coinbase's Non-U.S. Revenue Grows 20%
In 2018, a U.K. corporate filing stated that Coinbase's non-U.S. revenue grew 20% to €153 million (US$173 million), resulting in a net profit of €6.6 million.
2018: Coinbase Faces Gender and Racial Pay Gap Allegations
In 2018, The New York Times reported that based upon data up to 2018 women at Coinbase were paid an average of eight percent less than men at comparable jobs and ranks within the company, and Black employees were paid seven percent less than those in similar roles.
January 2019: Coinbase Halts Ethereum Classic Trading
In January 2019, Coinbase stopped all trading on Ethereum Classic due to a suspicion of an attack on the network.
May 2019: Emilie Choi promoted to President and COO
In May 2019, Emilie Choi, who joined Coinbase as Vice President of Corporate and Business Development in March 2018, was promoted to President and Chief Operating Officer.
2019: Coinbase Financial Loss
In 2019, Coinbase reported a financial loss, which was later contrasted by a reported net income of US$322 million in 2020.
2019: SEC Allegations Against Coinbase
In June 2023, the SEC claimed that Coinbase had been acting as an unregistered broker, exchange, and clearing agency since 2019, leading to legal action against the company.
May 2020: Coinbase Shifts to Remote Work
In May 2020, during the COVID-19 pandemic, Coinbase announced it was shifting completely to remote work and would no longer recognize a formal headquarters.
May 2020: Coinbase announces closure of San Francisco headquarters
In May 2020, Coinbase announced that it would shut its San Francisco, California, headquarters and transition to a remote-first operational model. This decision was part of a broader trend among major tech companies moving to remote work in response to the COVID-19 pandemic.
2020: Coinbase Financial Report
In 2020, Coinbase reported 43 million verified users, 7,000 institutions, and 115,000 ecosystem partners in over 100 countries. The company also reported a net revenue of US$1.14 billion, a net income of US$322 million, and held $90 billion worth of assets on its platform.
March 2021: Coinbase Settles Regulatory Claims and Expands to India
In March 2021, Coinbase agreed to pay US$6.5 million to settle regulatory claims that it had reported misleading information about its trading volumes. Also, Coinbase announced that it was establishing a business presence in India.
March 2021: Coinbase Under Review by OFAC
In March 2021, the company fell under review by the Office of Foreign Assets Control, with concerns that the company may have provided their blockchain service to blacklisted individuals or companies.
April 14, 2021: Coinbase Goes Public on Nasdaq
On April 14, 2021, Coinbase became a public company on the Nasdaq exchange via a direct stock listing.
April 2021: Coinbase Reports Nine-Fold Revenue Increase
In April 2021, with its final earnings release before its April 14 direct listing, the company reported a nine-fold increase in first-quarter revenue, to US$1.8 billion, up from US$190.6 million the previous year.
December 2021: Coinbase Freezes GYEN
In December 2021, Coinbase froze the cryptocurrency GYEN due to a sudden price spike, resulting in many traders losing money.
April 2022: Coinbase Begins Operations in India
Coinbase began operations in India in April 2022. The company initially relied on Unified Payments Interface to allow users to convert rupees to cryptocurrencies but ceased using UPI after a statement released by the National Payments Corporation of India.
May 2022: Coinbase-backed Mara Raises $23 Million
In May 2022, Coinbase-backed Mara raised $23 Million to build an African crypto Exchange.
May 2022: Coinbase Bankruptcy Risks
In a May 2022 Form 10-Q filing, Coinbase stated that custodially held crypto assets could be considered property of a bankruptcy estate, potentially making customers general unsecured creditors in the event of bankruptcy.
June 14, 2022: Coinbase Announces Layoffs
On June 14, 2022, the company announced it would be laying off approximately 18% of its workforce, about 1,100 full-time jobs, amid the global downturn in cryptocurrencies and services.
July 22, 2022: Insider Trading Charges
On July 22, 2022, a former Coinbase product manager, Ishan Wahi, along with his brother Nikhil Wahi and friend Sameer Ramani, were charged in the first-ever insider trading case in cryptocurrency by the Southern District of New York and the SEC.
October 2022: Coinbase Partners with Google Cloud
In October 2022, Coinbase partnered with Google Cloud Platform, allowing customers to pay for cloud services with cryptocurrencies supported by Coinbase Commerce. Coinbase also planned to transfer its data-related applications from Amazon Web Services to Google Cloud.
January 10, 2023: Coinbase Layoffs
On January 10, 2023, Coinbase announced it would lay off around 950 employees and incur restructuring expenses of up to US$163 million. This decision was influenced by the potential "further contagion" following the collapse of the FTX exchange.
February 7, 2023: Ishan Wahi Pleads Guilty
On February 7, 2023, Ishan Wahi, a former Coinbase product manager, pleaded guilty to insider trading charges after initially pleading not guilty.
March 2023: SEC Wells Notice to Coinbase
On March 22, 2023, Coinbase received a Wells notice from the SEC indicating an intended enforcement action regarding Coinbase's staking products. Coinbase called the investigation 'cursory' and stated it would continue its operations.
May 9, 2023: Ishan Wahi Sentenced
On May 9, 2023, Ishan Wahi was sentenced to two years in prison and ordered to forfeit various crypto assets in connection with an insider trading scheme involving Coinbase.
June 2023: SEC Sues Coinbase
In June 2023, the SEC announced it was suing Coinbase, alleging that the company had operated as an unregistered broker, exchange, and clearing agency since 2019. The SEC also claimed Coinbase had not registered its staking service as required by US securities laws.
July 2023: Coinbase Rejects SEC Demand
In July 2023, CEO Brian Armstrong revealed that the SEC had demanded Coinbase stop trading all assets except Bitcoin. Coinbase refused and opted to take the matter to court.
2023: Coinbase offers 250+ cryptocurrencies but not Monero
In 2023, Coinbase offered more than 250 different cryptocurrencies to U.S. customers. However, it did not trade Monero and other cryptocurrencies with enhanced anonymity protection due to KYC requirements and anti-money laundering regulations.