Among the increase in cryptocurrencies, there has also been an increase in the development of decentralized exchanges (DEXs). Coinbase is one of the most popularised crypto exchange applications up to this date. Its founders began with its development back in 2012. Their main mission was to create a platform that enables secure transactions among cryptocurrencies by anyone, anywhere. Coinbase is available in over 100 countries and has managed to secure a customer base of over 73 million users.
On November 24th, the Coinbase Team have announced their new business venture in acquiring the crypto wallet startup BRD (Breadwallet). This has in return caused a buzz within the crypto community. Some believe this to be a move in the right direction, and some believe the opposite. So, what does this mean for BRD users? And how will this benefit both Coinbase and BRD?
What Is BRD Wallet?
First, let’s give you a small background about the tech wallet startup. BRD was founded in Switzerland by Adam Traidman and Aaron Voisine in the year of 2015. The company managed to raise over 50 million dollars in capital funding and initial coin offerings (ICO). It was first launched as Breadwallet. However, they later rebranded to Bread in the year 2017. They also conducted an ICO for its native token, BRD.
We believe that all people have the right to directly own their wealth. Our mission is to make direct wealth ownership universally secure, accessible, and enjoyable.BRD Wallet Team
BRD is a non-custodial crypto wallet. It first started as a means to store Bitcoin. Then it gave its users the capabilities of buying, selling, and swapping different cryptocurrencies. When developing the application, the founders’ main mission was to enable their users to have complete control over their assets, without the need for a central entity. Also, to provide improved access to financial services on a global level. Their main focus was on providing their users the utmost security while also having an easy-to-use user interface. As of 2021, their platform was a host for over 10 million users.
The Coinbase Acquisition of BRD
Coinbase had a quite successful run this past year. It has managed to create partnerships with multiple organizations. It’s the first cryptocurrency platform to have ever partnered with the NBA, which is considered a major step forward in encouraging the use of cryptocurrencies. Adidas, Berlin International Gaming, and Team Liquid are also among the organizations to have collaborated with Coinbase this year. The Coinbase team is always seeking to pursue new business ventures. So, the acquisition of BRD wallet came as no surprise.
On November 24th, the Co-founders of BRD released an announcement on a blog post declaring “Today, we would like to share the news that members of our team will be continuing our mission at Coinbase, where we will work together to bring the power of decentralization to even more users around the globe.”
They proceeded by reassuring their users stating, “At this time, nothing will change in the BRD wallet app and as always, your funds are safe and secure. You may continue to transact normally. In the future, BRD wallet users will have an optional migration path to self custody with Coinbase Wallet, which will include a special gift. Stay tuned for more details to come 2022.”
On the same day, Coinbase announced the news on a Twitter post. They proceeded to say how excited they are to be “doubling down” on their investment in self-custody applications and Web 3.0. To “increase economic freedom in the world.” However, they have yet to declare the agreed-upon settlement of BRD’s acquisition.
Coinbase has a significantly larger user base than BRD and is available in many more countries. This could benefit the BRD team by reaching a number of users they haven’t reached before. By providing financial decentralization and full control over assets for many populations who have yet to embrace that.
How Did The Coinbase Acquisition of BRD Affect Its Price?
When news broke that Coinbase would be acquiring BRD, the startup company saw its native token skyrocket. The BRD coin had an estimated price of $0.17. Only one day after the announcement was made, BRD had a percentage spike of 623.53%. Making its price settle at around $1.23 on the date of Nov. 25th.
The news of Coinbase buying out BRD managed to play a significant role in the increasing price of BRD’s token. However, we can now see that its value is descending. The price of the altcoin is still up by 353% at the time of writing, with an estimated price of $0.77. It is expected that its price will decrease some more until it slowly fades away.
Part of the crypto community believes this to be a great move for both Coinbase and BRD. Uniting both teams could bring decentralization to an even bigger part of the globe and could increase BRD’s user adoption. However, some people within the community believe this to be a mistake on BRD’s account. One Reddit user has said, “Not sure how others feel but I’m quite disappointed. BRD always felt quite independent. On the plus side, my BRD token went up 400%”
Furthermore, there have yet to be any more details about this acquisition. However, the Co-founders of BRD did say that they will be releasing more details within the upcoming year about the acquisition, and about BRD’s limited fate in the upcoming future.
Sally is a student of International Business Management and is interested in topics related to blockchain technology. She is an author for gBlogo’s “Crypto World” column and provides insight on topics related to cryptocurrencies and NFTs.