— Ch. 1 · Founding And Early Growth —
Coinbase.
~5 min read · Ch. 1 of 5
Brian Armstrong, a former engineer at Airbnb, launched Coinbase in June 2012. He enrolled his startup into the Y Combinator incubator program and received an initial cash infusion of US$150,000. Fred Ehrsam, a former Goldman Sachs trader, joined as co-founder after noticing Armstrong's posts on Reddit. British programmer Ben Reeves was originally part of the founding team but parted ways before the funding event due to disagreements over wallet operations. The company name derives from coinbase transactions that introduce cryptocurrency into circulation within proof-of-work systems. In October 2012, the platform began allowing users to buy and sell bitcoins through bank transfers. By May 2013, Coinbase secured a US$5 million Series A investment led by Fred Wilson from Union Square Ventures. That December, Andreessen Horowitz, Union Square Ventures, and Ribbit Capital contributed another US$25 million. Olaf Carlson-Wee became the first employee hired later that year. The company grew to one million users during 2014 and acquired Blockr and Kippt. It also partnered with major firms including Overstock, Dell, Expedia, Dish Network, and Time Inc. to accept bitcoin payments. Insurance coverage for stored bitcoin and a vault system were introduced to enhance security.
Public Listing And Remote Operations
Coinbase went public via direct listing on Nasdaq on the 14th of April 2021. Before trading began, Nasdaq set a reference price of US$250 per share, valuing the company at approximately US$47 billion. Shares closed at US$328.28 after the first day of trading. Revenue surged nine-fold in the first quarter of 2021 to US$1.8 billion, driven largely by rising bitcoin prices. Earlier that month, the Office of Foreign Assets Control reviewed whether Coinbase had provided services to blacklisted entities. In May 2020, amid the pandemic, Armstrong announced a shift to fully remote work without a formal headquarters. This decision eliminated salary negotiations for new hires to address pay disparities between women and minorities. By June 2021, Dogecoin became available for trade on Coinbase Pro. The company faced internal backlash when Armstrong initially refused to comment on Black Lives Matter before reversing his stance publicly. A blog post later emphasized an apolitical culture, offering severance packages to employees who disagreed with this direction. Complaints arose regarding unfair treatment based on race or gender within the organization. In December 2021, The New York Times reported wage gaps where women earned eight percent less than men and Black employees seven percent less than peers.