Coinbase bets $375M that onchain ICO crowdfunding is crypto’s next wave

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Major US cryptocurrency speech Coinbase has acquired Echo, a level that allows communities to rise superior targeting early-stage projects and startups.

Coinbase struck a $375 cardinal woody to get Echo, a crowdfunding level founded by crypto trader Jordan Fish, known successful the assemblage arsenic Cobie, the institution announced connected Tuesday.

The acquisition came the time aft Coinbase sent $25 cardinal successful USDC (USDC) to Cobie’s wallet to get and pain a non-fungible token (NFT) and revive his UpOnly podcast.

“I surely didn’t deliberation Echo would beryllium sold to Coinbase, but present we are: Today Coinbase bought Echo for astir $375 million,” Cobie wrote connected X.

Ethena was the archetypal task to rise with Echo

The acquisition came little than 2 years aft Cobie launched Echo successful beta successful April 2024 with a ngo to alteration communities to put unneurotic successful backstage backing rounds.

In the 8 months since launching, the level has raised astatine slightest $51 cardinal successful funding, with 131 deals closed, including Ethena, a synthetic dollar protocol down one of the fastest-growing yield-bearing stablecoins connected the market, USDe (USDE).

According to Cobie, Ethena was the archetypal task to fundraise utilizing Echo, highlighting the platform’s crisp absorption connected early-stage investing.

In May, Echo introduced Sonar, a bundle merchandise allowing founders to self-host nationalist token income connected their ain presumption and preferred blockchains specified arsenic Hyperliquid, Base, Solana oregon Cardano.

Echo volition stay standalone…“for now”

Following Coinbase’s acquisition, Echo volition stay a “standalone level nether its existent marque for now,” Cobie said successful an X station connected Tuesday, adding that the Sonar merchandise volition beryllium integrated into Coinbase.

The integration volition “likely” present caller ways for founders to entree investors, who volition person caller concern opportunities connected Coinbase, helium added.

“Integrating Echo’s tools volition assistance america alteration much nonstop assemblage participation, joining projects with capital, wholly onchain,” Coinbase said, adding:

“While we’ll commencement with crypto token income via Sonar, we program to grow enactment to tokenized securities and real-world assets implicit time, leveraging Echo’s infrastructure.”

Are ICOs back?

The acquisition of Echo by Coinbase marks a increasing inclination toward assemblage fundraising, reminiscent of initial coin offerings (ICOs), which boomed successful 2017.

According to a Thursday study by Tiger Research, nationalist income person been progressively re-emerging successful caller forms, with launchpads similar Legion, Buidlpad, Sonar and Kaito starring the trend.

“The ICO roar peaked successful 2017 but rapidly contracted arsenic it mislaid credibility owed to fraud and opaque information,” Tiger Research said, adding that the marketplace subsequently shifted to backstage sales.

“However, nationalist income are precocious resurging successful caller forms,” it said, referring to nationalist launchpads similar Sonar.

“Short-term hype astir nationalist launchpads whitethorn chill down. However, nationalist launchpads are expected to persist owed to structural demand. They service arsenic a instrumentality for projects to unafraid aboriginal users and liquidity,” the study concluded.

While it remains to beryllium seen however the renewed inclination of nationalist token income volition unfold, immoderate high-profile figures linked to the Trump medication had called for an ICO revival earlier this year.

“We privation to marque ICOs large again,” Zak Folkman, co-founder of the Trump family’s cryptocurrency task World Liberty Financial, said successful February.

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