Tiger Global, which dominantly finances worldwide consumer brands, has been recently reported to have a 500 million USD contribution to the Coinbase cryptoexchange under consideration. If made, the valuation of the digital currency project will increase to the level of 8 billion USD, thereby solidifying the legitimacy of the cryptomarket.
Additionally, such contribution would render Coinbase one of the most valued American projects. The contribution would partially buy out the already existing shareholders, even though the exact numbers are yet to be established.
In the summer 2017, the San Franciso-based cryptoexchange had its valuation close to 1.5 billion USD. It was prior to the spike in the consumer interest in digital currencies, recorded in winter of the previous year. The business of the project has suffered since then, mainly because of the decrease in the digital currency prices. Brian Armstrong, the chief executive of the cryptoexchange, has quickly realized that he does not concentrate on short-term trading volume the same way he is on opening this system of finance to the worldwide community.
According to claims of the US cryptoexchange, it is profitable, and negotiations have been held with financiers for the bigger part of the year regarding the secondary stock sale to facilitate cashing out for them without making the firm engage in new fundraisers. The firm cautioned people to withhold from further soliciting shareholders and an agreement has never taken place.