Crypto exchange Coinbase has decided to shut down Earn.com (formerly 21 Inc), which it acquired for an estimated $100 million in 2018. The company notified users via email that it is “sunsetting Earn.com to focus exclusively on Coinbase Earn.” Users were given about two months to withdraw all funds before the service ends.
Coinbase Bids Farewell to Earn.com
Coinbase explained that it plans to “scale Coinbase Earn even further by adding more campaigns to the platform, to connect more blockchain networks with engaged crypto users.” Coinbase Earn is an educational platform that rewards users with tokens for tasks like watching videos and taking quizzes on cryptocurrencies. This move signals a strategic shift toward a service that aligns more closely with Coinbase's goals of onboarding new users through education.
The $100 Million Acquisition
Earn.com allowed senders to pay users in digital currency for replying to emails and completing tasks. Ordinary email users could earn crypto by replying, while commercial senders could pay to get responses for recruiting, fundraising, or marketing — messages that normally end up in spam. Coinbase announced the acquisition in April 2018 without disclosing financial terms, but the deal was estimated at just over $100 million — considerably lower than the startup’s earlier valuation, causing pushback from investors. As part of the deal, Earn.com co-founder and CEO Balaji Srinivasan became Coinbase’s first Chief Technology Officer. At the time, Earn.com promised users it was not “going down” and would get “bigger and better.”
What’s Next for Coinbase Earn
With Earn.com shutting down, Coinbase is doubling down on Coinbase Earn, which already supports token rewards from multiple blockchain projects. Analysts view this as a strategic consolidation, redirecting resources to areas with higher growth potential. Users of Earn.com are advised to withdraw their funds promptly and seek alternative services.