Coinbase, one of the USA based leading global cryptocurrency exchange recently revealed in its statement that it plans to shutdown its subsidiary Earn.com. The statement also revealed that this decision was influenced by its plans to expand the services of its Coinbase Earn program whose functions were very similar to and mirrored that of its subsidiary Earn.com. The move was firstly made public via an article published in crypto news site the black which stated the decision to shutdown Earn.com was made known to the clients of the firm via an official email which read that Coinbase will be “sun setting Earn.com to focus exclusively on Coinbase Earn” program. The email also revealed that the exchange operator has plans to scale Coinbase Earn even further by “adding more campaigns to the platform, to connect more blockchain networks with engaged crypto users”.
This is a major move for the firm especially given its investment made during the acquisition deal in which the exchange operated parted with US$100 Million in April last year to acquire Earn.com. While there are many in the market who see the acquisition deal as only a means used by the firm to bring into fold Mr. Balaji Srinivasan – Co-Founder and Chief of Earn.com platform to serve as its Chief Technology Officer, the funds invested is still a sizable sum result of which has caused many heads to turn towards it again owing to its recent update. It should be noted that this acquisition deal propelled the value of exchange from just US$1.8 Billion to US$8 billion back in the day making many question about the risks involved with its latest move. Earn.com was originally founded in 2013 and back then it was focused on developing chips and hardware for cryptocurrency mining. However, the start-up had since evolved and rebranded itself to new label of 21.CO in 2017 post the launch of its paid messaging platform which allows senders to pay users in cryptocurrency to reply to emails and complete tasks.
Coinbase Earn, the platform towards which the exchange operator has now shifted focus and plans to expand further is a similar platform to the subsidiary albeit with one slight difference which makes it a better and preferred choice for many users in the market. This one difference which distinguishes its subsidiary from its native platform is the Coinbase Earn program’s direct integration with exchange operator’s ecosystem while Earn.com users needed to be redirected to a third party domain. Given the fact that Coinbase Earn and its connected exchange both belong to same brand label, the exchange operator’s native program has gained immense popularity among crypto users. The exchange operator claims that this feature has allowed “nearly a million unique users in 115+ countries to earn their share of hundreds of millions of dollars in crypto”. Coinbase has made it clear in its announcement that clients of Earn.com will now have to withdraw any funds from the platform by 20th of February, 2020 post which the subsidiary is expected to be shut down completely. The announcement also made it clear that rumours of exchange operator working to acquire US based prime broker Tagomi is false update.