Following Coinbase’s acquisition of a utility token for an old-school Bitcoin wallet, the price of the token has skyrocketed.
Breadwallet, an open-source cryptocurrency software wallet, recently announced that Coinbase had acquired it. In response to the news, the price of the BRD token has increased by 400%.
Breadwallet has joined Coinbase.
Breadwallet announced its acquisition by Coinbase earlier today in a blog post. The team stated that it will collaborate with the exchange to bring decentralization to more users worldwide.
“At this time, nothing will change in the BRD wallet app,” the statement said, “and your funds are safe and secure as always.” You may continue to conduct business as usual. BRD wallet users will soon have the option to migrate to self-custody with Coinbase Wallet, which will include a special gift. More information will be released in 2022.”
Breadwallet debuted as an app in 2014, with the goal of making crypto custody more accessible to the general public. According to a 2016 statement, the team was particularly intrigued by Bitcoin’s financial freedom and inflation hedging capabilities. Bloomberg recently recognized Bitcoin as one of the best inflation hedge assets available right now.
The wallet currently has over 10 million users worldwide. Those users are granted additional features for holding BRD tokens within their wallet as part of the wallet’s functionality. BRD is the Breadwallet utility token that is used to reward users who interact with the app.
The token’s value outside of the app is entirely determined by market forces, which are currently working in its favor. It was previously trading for $0.16, but it spiked to $0.50 at around 3:18 EST, and then to $0.80 at 4:04. That’s five times its starting price since announcing its participation in Coinbase.
Conquest of Coinbase
With a slew of new products and partnerships, Coinbase has quickly entered nearly every aspect of the cryptocurrency space. In addition to acquiring Breadwallet, the exchange has teamed up with META (formerly Facebook) to launch its cryptocurrency wallet “NOVI.” The exchange has even become the NBA’s official cryptocurrency partner.