Coinbase’s COIN Now Available as Crypto Token, but There’s Caveat

Backed Coinbase Global (bCOIN) by Backed is set to reflect the price dynamics of Coinbase’s shares. It reveals yet another attempt to achieve synergy between Web2 and Web3 investment opportunities.

COIN-pegged token released on Ethereum (ETH) by Backed

According to an official announcement shared by Backed, an RWAs tokenization ecosystem, its new token bCOIN launches to be a “tokenized tracker” of Coinbase’s NASDAQ-listed COIN.

After our announcement that we will be supporting the testnet launch and bringing real-world assets to Base, we are incredibly proud to announce the launch of our second product: Backed Coinbase Global.$bCOIN is our tokenized tracker of @Coinbase Global Inc. ( $COIN ). pic.twitter.com/oAzPQGMkVV

— Backed (@BackedFi) February 24, 2023

The asset is issued on top of the Ethereum (ETH) blockchain as an ERC-20 token. It is 1:1 backed by COIN shares controlled by a third-party custodian. All bAssets by Backed are issued in accordance with the Swiss DLT act and are regulated according to Switzerland regulation.

Meanwhile, the release of the token has some limitations regarding its audience. The tokens are only sold to qualified investors and licensed resellers. Also, users from the United States or their representatives as well as residents of EU-sanctioned countries and territories are prohibited from buying Backed’s tokens. Additionally, the list of prohibited countries includes Canada, Japan, all CIS countries and all African countries except Mauritius and South Africa.

Potential investors should pass KYC checks. After KYC, they can purchase bTokens directly from Backed paying a one-time fee. The company promotes itself as a “blockchain-agnostic” one: besides Ethereum (ETH), it is going to issue tokens on other EVM blockchains.

Big week for Coinbase

As of printing time, COIN is trading at $58.44, being 67% down in the last 12 months. Coinbase, the largest U.S. crypto ecosystem, went public through an IPO on NASDAQ on April 14, 2021: its first trading day was closed at $328.

Last week, Coinbase revealed that it is launching its own rollup (L2 network on Ethereum) dubbed Base. It leverages the Optimism (OP) technology stack and becomes the first-ever “corporate” scaler for Ethereum (ETH).

On Feb. 22, 2023, the company also released Q4, 2022 reports: its revenue and adjusted earnings per share exceeded estimations. However, the company was exposed to FTX and lost $14 million due to the collapse of the fourth-largest crypto exchange in November 2022.