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Coinbase Unveils Crypto Investment Strategy Amid Shaky Macro Economic Environment


dailyhodl.com 23 April 2022 14:24, UTC
Reading time: ~2 m

Crypto exchange giant Coinbase is revealing its crypto investment holdings amid times of macro uncertainty.

In a new blog post, the top US-based crypto exchange platform unveils a detailed breakdown of its Q1 2022 crypto portfolio and offers insights on how it plans to navigate an unsteady macro environment going forward.

“Amidst a shaky macro picture, many crypto investors are on edge… Our strategy won’t change much. It bears reminding that some of the most successful projects of today were funded during the bear market of 2018/2019.

In that light, our early investments in projects like Compound, OpenSea, Polygon, Arweave, Starkware, Blockfi, NEAR, and Messari among others come to mind.

As such, we’ll continue to invest in quality founders and projects moving the industry forward regardless of broader market conditions.”

Source: Coinbase

Coinbase says they invested in Web 3.0 and cross-chain platforms in Q1 because many networks are seeing growth in value, which creates demand for capital flow across numerous blockchains.

“The growing value across multiple networks has brought an increasing need for value on one chain to flow to another. As such, we’re continuing to see cross-chain infrastructure being built out to facilitate activity between blockchains. (Coinbase Ventures Q1 investments: LayerZero, ZK Link, LiFi, Foxchain, Socket, Composable Finance).”

The US crypto exchange leader then says layer-1 blockchains are not yet finished innovating and reveals its investments in the sector.

“We’re still seeing new experimental layer 1s in development.

Our investments in Aptos (general-purpose L1 from former Diem employees), Celestia (modular blockchains), and Subspace (Proof-of-Archival consensus) suggest that the industry is not done innovating at the base layer.”

Coinbase also says it has invested in the parachains of Ethereum (ETH) challenger Polkadot (DOT). Parachains are project-specific blockchains that run in parallel within the Polkadot ecosystem.

“We were particularly active in the Polkadot ecosystem in Q1…

We’ve now invested in 4 of the 5 live parachains (Acala, Moonbeam, Parallel Finance, and Astar) and waded deeper into the DOT waters in Q1 with investments in Satori and Moonwell.”

Coinbase notes that it also invested in blockchain gaming platform Joyride, Vietnamese gaming guild Ancient8, and Yuga Labs, the creator of the popular Bored Ape Yacht Club non-fungible token collection.

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