Garry Tan’s $ 300,000 investment in Coinbase in 2013 is now worth $ 2.4 billion

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Garry Tan, a well-known angel investor and founder of Initialized Capital, was one of the first investors to provide seed capital to Coinbase eight years ago.

Less than a decade later, and following today’s highly anticipated Nasdaq listing for Coinbase’s COIN stock, Tan’s $ 300,000 investment in Coinbase in 2013 is now worth $ 2.4 billion.

Coinbase debuted on the Nasdaq on April 14 at $ 381 per share, making it one of the most hyped listings on the US stock exchange of the year.

How did $ 300,000 become $ 2.4 billion?

When Tan invested in Coinbase in 2013, it was unclear whether Bitcoin would be recognized as a global asset and an established store of value.

There weren’t many reputable exchanges at the time, and the few that did exist were often hacked. Tan’s investment took place in front of the monumental mountain. Gox hack that stole billions of dollars worth of BTC.

Even after launch, Coinbase was not always on the uptrend. Coinbase co-founder Fred Ehrsam said the company faced numerous difficulties from 2014 to 2017.

Honestly said:

“Over time, Crypto grew and so did the company. A simple #bitcoin wallet evolved into individual and institutional products to support a thriving crypto economy. 2 nerds who met online (yes, @brian_armstrong and I met @reddit), turned around In the three years between 2014 and 2017, the outside world thought crypto was dead. Over a third of the employees left the company. But Krypto continued to build. @ethereum came on stage and showed this crypto-native applications were possible and opened up a whole new world of possibilities. “

Even if the listing doesn’t impress, Coinbase has seductive financial data

Coinbase is the first major cryptocurrency exchange listed on the US stock exchange. Its availability on the Nasdaq now offers mainstream investors exposure to the crypto sector. Even if the listing didn’t impress on day one, the company has strong financials and user metrics.

Coinbase made $ 1 billion last quarter and has more users than any other financial institution in the US except JPMorgan. This makes it an extremely compelling business for investors in the traditional financial market.