American cryptocurrency exchange platform Coinbase Global Inc. (COIN) announced its intent to buy Israel-based cryptographic security company Unbound Security for an undisclosed sum.
The deal is subject to certain conditions and is expected to close shortly. The company’s shares closed down 1.4% at $315 on November 30.
Growing Crypto Market
As a leading cryptocurrency exchange platform, providing the highest level of protection for customer assets has always been of prime importance to Coinbase. The addition of Unbound Security provides the best in class and state-of-the-art security technology for customers to interact with the cryptocurrency.
Due to its very nature, cryptocurrency as an asset needs easy storage, transferability, and access. As a secure multi-party computation (MPC) application, Unbound Security provides strong security and is user-friendly.
The crypto market has grown multi-fold with new asset classes such as staking, Decentralized Finance, and Non-Fungible Tokens. With the growth of asset classes, comes the risk of newer threats and the complexity of managing them.
An MPC application brings in the safety, security, and ease of usage for customers to access their assets, and a technique that provides the virtually impenetrable nature of cold, offline storage, with the frictionless convenience of hot, online wallets.
Moreover, the acquisition of Unbound Security brings along top management and unmatched expertise from the cryptographic security market, including its co-founder Yehuda Lindell, and its co-founder and current Vice President of Research and Development, Guy Peer.
Entry into Israel
With the acquisition of Unbound Security, Coinbase also gains access to the highly lucrative technological and cryptographic hub of Israel. The company plans to launch a research and development center in Israel with a focus on the crypto market, which the company will expand in the future.
The company said, “We’re always proud to welcome top talent to Coinbase and the Unbound Security team represents the very best expertise in its field. We look forward to working with them over time to move the entire state of cryptographic security forward and to continue delivering the highest levels of security to our customers.”
The Wall Street community has a Strong Buy consensus rating on the COIN stock with 13 Buys, 2 Holds, and 1 Sell. The average Coinbase price target of $398 implies 26.35% upside potential to current levels.
TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into COIN’s performance.
In October, Coinbase website traffic recorded a massive 158.15% year-over-year increase in monthly visits. Similarly, year-to-date website traffic growth increased by a whopping 221.42% compared to the same period last year.