Coinbase acquires Cipher Browser – Business Insider

Coinbase CEO Brian Armstrong

Anthony Harvey / Stringer

  • Coinbase acquired Cipher Browser, an ethereum pockets that competed with its current Toshi ethereum browser, the corporate introduced Friday.
  • It is the primary acquisition the $1.6 billion cryptocurrency trade has made since hiring away former LinkedIn M&A frontrunner Emilie Choi in March.
  • It is also an indication that Coinbase is prepared to dish out money to purchase up its opponents.

Coinbase has huge plans to be the Google of cryptocurrency. So it is no shock that the $1.6 billion bitcoin trade has taken a web page from Google’s personal playbook: buying a small, however nimble competitor.

On Friday, Coinbase introduced its acquisition of Cipher Browser, a cryptocurrency pockets firm that lets customers retailer ethereum-primarily based tokens. It is much like Coinbase’s current ethereum browser, Toshi.

Cipher’s one man group, Pete Kim, will tackle the title of head of engineering for Coinbase’s Toshi and work alongside Sid Coelho-Prabhu, the present Toshi product lead. The corporate did not disclose the phrases of the deal.

Cipher Browser founder Pete Kim is becoming a member of Coinbase.

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It is the primary acquisition Coinbase has made since poaching LinkedIn’s mergers and acquisitions boss Emilie Choi.

Coinbase’s newest $100 million funding spherical and $1 billion income stream offers the corporate loads of money to place towards acquisitions. However the trade has been pretty gentle-handed since its founding in 2011.

In January, Coinbase acqui-employed the small engineering group behind Memo.AI, a two-yr-previous startup that constructed a Slackbot to assist handle technical groups. And in 2014, it made two different acqui-hires: Kippt and Blockr.io.

Like its previous acquisitions, Cipher and Kim can be blended into Coinbase’s current construction. The corporate additionally plans to combine options from the Cipher Browser into Toshi.

Coinbase launched Toshi in 2014 as an open-supply instrument equipment to make it simpler for bitcoin builders to construct new instruments. However it’s since turn into clear that the bitcoin blockchain is just too gradual and costly to make use of for something however digital cash.

Then ethereum got here onto the scene. Ethereum, which itself has a profitable cryptocurrency traded on Coinbase, is a blockchain community designed to host purposes on high of it. It is the blockchain that helps video games like Cryptokitties, in addition to an entire slew of different startups.

In idea, Toshi makes it simpler for informal customers to entry purposes constructed on the ethereum community.

“We’re excited to mix forces and construct the most effective browser for the decentralized net,” a Coinbase spokesperson mentioned within the announcement.

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