The crypto space has witnessed numerous mergers and appropriations between crypto firms lately. US-based crypto exchange Coinbase has also been on an appropriation spree since getting listed on NASDAQ. Its latest appropriation is a leading crypto data aggregator, Zabo, which boasts of over 50 API integrations of cryptocurrency platforms and digital wallets.
Zabo Acquired by Coinbase for an Undisclosed Sum
Coinbase announced the latest appropriation in a statement released on Wednesday, where it declared it has begun steps toward absorbing the crypto aggregator service, Zabo, into its platform. Zabo provides crypto data services for more than 50 exchanges, including leading crypto platforms like Binance, and digital wallets such as Ledger. In its announcement, Coinbase did not reveal the cost of its latest appropriation. However, one could assume that the deal must have cost the US-based crypto platform millions of dollars.
Zabo is a crypto start-up that surfaced in 2018 and aims to provide a unified method for holding crypto assets. The crypto data aggregator uses a technology that allows users to connect their accounts on crypto platforms and digital wallets in order to keep track of their crypto holdings. Zabo wants to achieve this with the help of application programming interfaces (APIs). These APIs obtain past transaction data and existing balances from users’ numerous public keys (crypto addresses) efficiently.
As earlier mentioned, Zabo’s API technology covers over 50 crypto platforms and digital wallets, including Canada-based crypto platform, Kraken, hardware wallet, Ledger, Alameda-owned crypto exchange FTX and digital currency payment service, BitGo.
Coinbase, Leading Mainstream Cryptocurrency Adoption
Co-founder of Zabo, Alex Treece, while sharing his thoughts on the appropriation noted that Zabo was delighted to join Coinbase, which has been a beacon for other firms within the industry. Treece also declared that in the last three years, Zabo has been able to position itself as the world’s leading crypto data aggregator. In 2020, Zabo pooled $2.5 million during a funding round (seed), with contributions from VC firms like Moonshots Capital, Digital Currency Group, Europe-based asset management firm, CoinShares.
Coinbase’s latest appropriation is one out of the numerous appropriations it has embarked on since the start of 2021. Crypto startups that have joined Coinbase in 2021 include blockchain analytics firm Skew, BisonTrails and Routefire. Coinbase listed on NASDAQ back in April with the trading ticker, COIN.
However, its listing was the subject of a controversy in July, after it was slammed with a lawsuit by one of its shareholders, who claimed that Coinbase misrepresented facts while listing on NASDAQ. Coinbase held a bonds sale after listing, which would have been unnecessary if facts stated in its documents were genuine. Notwithstanding, Coinbase’s NASDAQ listing has spurred other crypto firms like Robinhood and Binance to indicate interest in going public. Meanwhile, Robinhood’s IPO application is yet to be approved by the US SEC.