It is rather uncommon for centralized exchanges to invest money into non-custodial solutions. Coinbase is bucking this trend by making a financial contribution to Uniswap and PoolTogether.
Most cryptocurrency enthusiasts will have heard of these two services.
DeFi Investments for Coinbase
UniSwap is a non-custodial exchange that shows how convenient crypto trading can be without middlemen.
PoolTogether is a decentralized lottery where no one loses money, which is very interesting in its own regard.
Coinbase has now taken notice of both projects and decided to make a strategic investment.
A total of 1.1 million USD Coin (USDC) has changed hands as part of this deal.
Coinbase did not invest in these companies directly, but utilized its Bootstrap Fund arm.
That venture focuses on supporting projects in the DeFi space and cryptocurrency space.
It is evident that Etheruem’s DeFi industry has been growing rapidly since its inception.
Recent price decreases for both ETH and tokens issued on this network has caused the total DeFi value to drop from over $1 billion to just $643 million.
That said, it is not something that would affect the decision by Coinbase to make this investment.
Volatility is the name of the game in the cryptocurrency space, and will continue to be so for some time to come.