Coinbase Buys Startup Routefire in Anticipation of the Institutional Invasion


Coinbase bought startup Routefire ...

Coinbase buys startup Routefire in anticipation of institutional invasion

  • Coinbase prepares for an influx of institutional investors

  • Earlier, the exchange helped MicroStartegy to buy bitcoin for $ 425 million without a significant jump in volatility

  • Exchange users accuse the site of constant technical failures amid Bitcoin rally

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US cryptocurrency exchange acquires Routefire, a service focused on institutional-scale cryptocurrency transactions

US-regulated crypto exchange Coinbase has acquired Routefire. This is reported on the official website of the startup..

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Routefire was launched in 2017. The project positions itself as a liquidity aggregator for large transactions with minimal price impact. The project will cease to exist as an independent startup and come under the leadership of Coinbase.

Coinbase bought startup Routefire ...

The size of the deal was not disclosed.

New volley

With the purchase of Routefire, Coinbase is preparing for an influx of institutional investors. Coinbase reported back in early December 2020 that it had helped the business provider MicroStrategy to buy bitcoin for $ 425 million.

Coinbase bought startup Routefire ...

Then the exchange carried out the transaction through OTC channels to avoid a sharp jump in the price volatility of the asset..

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The exchange helped MicroStrategy save about $ 4.2 million by splitting large transactions into smaller ones.

“As part of our mission to create an open financial system, the recognition of the value of cryptocurrency by companies like MicroStrategy can make a huge difference to the growth of the crypto economy,” Coinbase said at the time..

For the sake of big players

However, the purchase of Routefire is unlikely to help the exchange avoid a wave of resentment from retail customers, who often cannot access the exchange during the burst of volatility in Bitcoin..


So, for example, Coinbase was again inaccessible to most users when Bitcoin broke the $ 40K mark.

“I love how Coinbase is forcing its users to HANDLE bitcoin by default due to constant crashes of the [trading] app,” @RampCapitalLLC wrote.

BeInCrypto previously reported that Coinbase seems to use special algorithms to stop trading every time Bitcoin’s volatility rises..

Coinbase bought startup Routefire ...

Due to frequent glitches and opaque asset listing policies, Keiser Report host Max Keizer even called the exchange a technical “casino” that needs to be regulated accordingly..

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