Coinbase, the popular cryptocurrency exchange based in San Francisco, has announced the acquisition of Cipher browser on April 13th. This included the web3 dapp browser and a free mobile Ethereum wallet.
As much as the specific terms of this deal are yet to be made public, it is clear that this move by Coinbase is meant to strengthen Toshi, its own product. Toshi was introduced last year and acts as a free API toolkit for developers of Bitcoin apps that run fully on Bitcoin nodes with the backing of an SQL database. What’s more, Toshi users can now use the platform as an Ethereum wallet while sending secure messages via the Ethereum app, and essentially, this works exactly as it does on Cipher.
What About the Competition?
Based on this development, this move may be seen in some sections of the crypto community as a strategy to do away with the competition. TechCrunch notes that Coinbase is planning on blending the Cipher browser and Toshi teams. This would be a simple process, considering that Cipher is basically a creation of the same person; Pete Kim.
Kim is expected to become the head of engineering at Toshi as Coinbase brings the two platforms together. It should also be noted that Kim will be working alongside the product lead of Toshi, Sid Coelho-Prabhu.
The Vice President of Communication at Coinbase, Rachel Horwitz, made a statement in reference to the development where she said:
[Coinbase is] always looking to acquire the best teams and technologies in the crypto spaces. Given the similarity of our product visions, we’re happy to be joining forces with Pete, who will become head of engineering for Toshi alongside Sid Coelho-Prabhu, Coinbase’s product lead for Toshi. In coming weeks, we’ll merge certain features of Cipher into Toshi.
Talking The Talk
Coinbase seems to have gone this route in its bid to talk the talk after a slew of expansion moves that had been promised. In line with this expansion move, the company has hired Emilie Choi, the former LinkedIn executive as its new Vice President on corporate and business development matters.
What do you think about Coinbase’s move to acquire Cipher? Is this a step in the right direction for the company? Let us know your thoughts in the comments section below.