Why Coinbase Acquires Echo? Strategy Behind the $375M Deal

Coinbase acquired Echo on October 21 - Platform that helps projects raise fund from the community directly via blockchain. So why didn’t Coinbase build its own platform from scratch instead of buying one for nearly half a billion USD? 

The Coinbase-Echo Acquisition Event

Coinbase, the largest cryptocurrency exchange in the US has officially announced the acquisition of Echo in a deal estimated at $375M.

Echo is an on-chain ecosystem featuring the Sonar fundraising platform, founded by Cobie. It enables investor communities to collectively fund crypto projects and allows businesses to raise fund directly on the blockchain without intermediaries.

Some notable successful deals on Echo include:

• Ethena
• Initia
• Plasma

Prior to the Echo acquisition, Coinbase spent $25M to purchase the UpOnly NFT, a collectible tied to Cobie’s popular podcast of the same name. This NFT is not merely a collectible but a symbol of the brand and influence Cobie has built over nearly a decade.

Coinbase’s Big Bet on the On-Chain Space

In less than 48 hours, Coinbase has invested a total of $400M in two products directly linked to Cobie.So why is Coinbase spending so heavily, especially on on-chain products?

Let’s examine key details from Coinbase’s Q1 report:

• Net profit fell 94%.
• Institutional trading revenue dropped 30% year-over-year.

This decline can be attributed to several market factors: weakening altcoins reduced user trading demand, fees lost competitiveness against ETF funds, and the rise of memecoins and on-chain opportunities on platforms like Solana and Hyperliquid eroded Coinbase’s appeal.

During the same period, Binance also launched Binance Alpha, introduced incentives around Binance Wallet, and most recently supported Aster to help educate users about on-chain usage.

Recognizing these challenges, Coinbase has pivoted through four strategic acquisitions to support its long-term vision:

• Spindl: Acquired in January 2025; provides on-chain advertising solutions.
• Iron Fish: A privacy-focused chain using zk-SNARK technology, enabling Base developers to build secure, private applications.
• Deribit: Purchased for $2.9B in May to bolster derivatives market competitiveness.
• Liquifi: Acquired in July; a comprehensive token management platform handling allocation, unlock schedules, airdrops, and tax compliance. The Uniswap Foundation, Ethena, and OP Labs have used Liquifi for token and airdrop management.

Clearly, Coinbase’s future focus extends beyond traditional CEX operations to building a comprehensive crypto infrastructure centered on its exchange and flagship L2 - Base.

Thus, acquiring Echo makes perfect sense, it allows Coinbase to control another critical segment of the on-chain space:

• Echo is part of a broader expansion strategy to dominate the entire crypto value chain from seed funding to token listing on the exchange.
• By acquiring Echo, Coinbase can seamlessly integrate Echo-supported projects into its platform, guaranteeing liquidity for tokens within the Base ecosystem.
• The move also mitigates risks associated with traditional IDO platforms, which often lack regulatory oversight.

Why Echo and Not Another Similar Platform?

The acquisition effectively buys Cobie’s powerful personal brand, which commands immense respect across the crypto community.

Additionally, Coinbase plans to revive the UpOnly podcast - Cobie’s signature media brand to further tie his influence to the exchange.

Looking at the on-chain empire, Base is building reveals the grand vision of US’s top exchange:

• Base App: A super app integrating DeFi, GameFi, and SocialFi in one place serving as the seamless bridge from Coinbase users to the on-chain world.
• Echo: On-chain fundraising platform. Coinbase acquires not just technology but Cobie’s influence, strengthening its fusion of media, fundraising, and crypto trading.
• Base: The L2 backbone ensures smooth operations.
• Morpho: An advanced lending protocol with product improvements, directly backed by Coinbase.
• Plus numerous high-quality consumer apps on Base, including Zora, Limitless, Farcaster, and more.

➥ The full picture of Coinbase’s on-chain strategy is clearer than ever and it appears everything is primed for a major catalyst: the launch of the BASE token.

Read more: Who will be eligible for the Base airdrop?

$BASE will soon be available for trading on the premarket platform Whale Market, users should stay alert to seize the opportunity.

Conclusion

Through this article, we hope you’ve gained deeper insight into Coinbase’s acquisition of Echo. The on-chain arena is about to become fiercely competitive with the entry of industry giants.

This competition will directly benefit users through incentives, market momentum, airdrops, and aggressive user acquisition tactics.

FAQs

Q1. What is Echo?

Echo is an on-chain fundraising platform by Cobie, helping investors collectively fund crypto projects. Coinbase acquired it for $375M to expand into on-chain finance.

Q2. Why did Coinbase buy Echo?

To build a full on-chain ecosystem from project fundraising on Echo to token trading on Coinbase and liquidity on Base.

Q3. Why Echo, not another platform?

Echo offers both strong tech and Cobie’s community influence, giving Coinbase credibility and network effects that typical IDO platforms lack.

Q4. How does Echo connect to Base?

Echo will integrate directly with Base, Coinbase’s L2 chain, allowing projects to raise, launch, and trade within one ecosystem.

Q5. What’s next for Coinbase users?

Expect deeper on-chain features, new incentives, airdrops, and possibly a BASE token as Coinbase expands its crypto infrastructure.

Q6: What is the price of $BASE today?

$BASE does not yet have an official market price since it has not been listed. However, you will soon be able to trade it on the leading pre-market platform, Whales Market. Here, you can buy more $BASE or sell to take profit before it is officially listed on CEXs like Binance or Bybit.

Q7: What is the $BASE pre-market price?

As of October 22, 2025, $BASE does not yet have a pre-market price. However, you will soon be able to trade it on Whales Market.