- Coinbase bought Echo for $375 million to make onchain fundraising easier, fairer, and open to everyday investors worldwide.
- The deal helps Coinbase expand into decentralized fundraising, giving crypto startups direct access to community-driven funding tools.
- Echo’s platform has powered over 300 deals and raised $200 million, showing strong demand for transparent token sale systems.
In a move that will reshape onchain capital formation, Coinbase has acquired Echo, the leading platform for community-driven token sales, for approximately $375 million. Echo’s platform allows projects to raise funds directly from their communities.
Through this transaction, individual investors will have more access to private token sales and fundraising will become more transparent, efficient, and accessible. Coinbase broadens its presence in the developing field of decentralized fundraising with this acquisition.
Cobie, a crypto pioneer, established Echo with the goal of making early-stage financing more accessible. With the help of Sonar, a self-hosted solution, the platform enables projects to start private or public token sales.
By integrating Echo’s tools into Coinbase’s offerings, the company aims to provide a comprehensive solution for crypto projects and investors. This acquisition also complements Coinbase’s previous acquisition of Liquifi, which streamlines token creation and cap table management for startups.
The Importance of This Acquisition
CEO Brian Armstrong confirmed the acquisition via X, stating, “Onchain capital formation is a vital and unique part of the crypto ecosystem.” He further emphasized that integrating Echo’s tools will allow for direct community participation in fundraising. Through this partnership, Coinbase plans to provide more investment opportunities to individuals who were previously excluded from early-stage token sales.
Echo’s success in opening private markets is significant. To date, the platform has helped projects raise over $200 million, completing around 300 deals since its launch. Its self-hosted public token sale product, Sonar, has also gained traction, powering projects like Plasma’s XPL token sale. With these innovations, Coinbase aims to further reduce friction for builders and investors, making capital markets more efficient.
