Coinbase (YC S12) is becoming the most trustworthy consumer brand in Bitcoin

by Y Combinator5/28/2013

Alexia Tsosis of Techcrunch writes: 

I would not have bought my .1 ($13.17) in Bitcoin if it weren’t for a startup called Coinbase, which is “one of the places that looked less sketchy,” according to TechCrunch editor and Bitcoin bug John Biggs. “It’s one of the ones I would tell my Mom to use,” Biggs insisted. Indeed, if your mom knows how to link a bank account to a Fidelity or Charles Schwab account and buy mutual funds, buying Bitcoin through Coinbase is a similar deal. Just input her account and routing number, verify a couple of small transactions and your mom will be one step closer to Silk Road.

In addition to investor interest, the startup is beginning to see some traction. In January, it launched its Bitcoin-to-US-dollars exchange feature, and saw $1 million converted in and out of Bitcoin. In February it saw $2.5 million, and this April the startup saw $15 million — figures inevitably increasing with the rise in the Bitcoin exchange rate. Armstrong holds that the company, which takes a 1 percent transaction fee from all conversions, is growing 15 percent week-over-week in terms of transaction volume, revenue and users signing up. “Coinbase is becoming the most trustworthy consumer brand in Bitcoin,” investor Bobby Goodlatte told me.

Read the full article and watch Alexia’s interview with Coinbase cofounder Brian Armstrong

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  • Y Combinator

    Y Combinator created a new model for funding early stage startups. Twice a year we invest a small amount of money ($150k) in a large number of startups (recently 200). The startups move to Silicon