Coinbase has officially acquired Echo, a capital-raising and investment platform, in a deal valued at $375 million, according to reports. The acquisition, which aims to enhance Coinbase’s ability to support early-stage projects and startups, has generated wide discussion within the crypto community about the exchange’s expanding market influence.
Through Echo, Coinbase plans to provide funding and infrastructure support for projects within its Base ecosystem, offering developers and startups access to capital, mentorship, and growth opportunities. Industry analysts believe this move represents a major step in Coinbase’s broader strategy to position Base as a leading blockchain for innovation and Web3 adoption.
However, the acquisition has also sparked speculation across X (formerly Twitter), with some users suggesting that Coinbase’s latest move could be an attempt to compete with Binance’s YZi Labs, a leading investment division under Binance that has already built an impressive portfolio of Web3, AI, and biotech-focused projects valued at over $10 billion.
YZi Labs has gained recognition for its aggressive identification and funding of early-stage, investable projects that have the potential to scale globally. Observers believe Coinbase’s acquisition of Echo could mark the beginning of a similar strategy, one designed to fuel innovation within its ecosystem while also expanding its influence as a market maker.
According to several market watchers, this development signals a growing rivalry between Binance and Coinbase in the venture and market-making space. Both exchanges appear intent on shaping the next phase of the crypto market by backing promising startups and tokenised projects.
Many in the crypto community view the move as a bullish signal for the broader market. Increased institutional participation and competition between top exchanges could accelerate innovation, attract fresh capital, and improve project credibility ahead of the next bull cycle.
Interestingly, some analysts have drawn parallels between Coinbase’s Echo strategy and the role that Alameda Research played for FTX during the 2021 bull market. While Alameda’s eventual collapse exposed flaws in its operations, its early activities were instrumental in driving liquidity and token performance across several emerging projects.
Unlike FTX, however, Coinbase and Binance are expected to operate their investment arms with stronger transparency and compliance. If managed responsibly, both Echo and YZi Labs could play a pivotal role in shaping the next wave of crypto innovation and market recovery.
For now, Coinbase’s acquisition of Echo not only expands its ecosystem reach but also positions the exchange as a major force in venture-backed crypto innovation, directly rivalling Binance’s growing dominance through YZi Labs.
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