Coinbase’s COIN is now available as a crypto token, but there are caveats

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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 connected token released on Ethereum (ETH) by Backed

According to an official announcement shared by Backed, an RWA tokenization ecosystem, the new token bCOIN is being launched to be a “tokenized tracking” of Coinbase’s NASDAQ-listed COIN.

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 the Swiss regulations.

Meanwhile, the release of the token has some limitations in terms of audience. The tokens are sold only to qualified investors and licensed dealers. Users from the United States or their representatives as well as residents of EU-sanctioned countries and territories are also prohibited from purchasing Backeds tokens. In addition, the list of banned 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 buy bTokens directly from Backed and pay a one-time fee. The company promotes itself as a “blockchain agnostic” one: in addition to Ethereum (ETH), it is going to issue tokens on other EVM blockchains.

Big week for Coinbase

As of press time, COIN is trading at $58.44, which is down 67% over the last 12 months. Coinbase, the largest US crypto ecosystem, went public on NASDAQ on April 14, 2021: the first trading day closed at $328.

Last week, Coinbase revealed that they are launching their own rollup (L2 network on Ethereum) called Base. It leverages the Optimism (OP) technology stack and becomes the first ever “enterprise” scaler for Ethereum (ETH).

On February 22, 2023, the company also released reports for the 4th quarter of 2022: Revenue and adjusted earnings per share exceeded estimates. However, the company was exposed to FTX and lost $14 million due to the collapse of the fourth largest crypto exchange in November 2022.