Reports indicate that cryptocurrency exchange Coinbase is holding talks with a view to acquiring Earn.com. Coinbase has raised venture funding amounting to over $225 million. Earn.com was previously 21.co before it was rebranded towards the end of last year after it launched a paid messaging platform.
According to sources Coinbase could pay over $30 million for the startup. This estimate is on the lower side since the startup has raised over $120 million in various rounds since its formation five years ago. Additionally sources indicate that multiple parties are holding talks with Earn.com over a possible acquisition.
Smart contract bug
At the beginning of the month Coinbase announced that Emilie Choi who previously worked at LinkedIn as the mergers and acquisitions head has been hired as the business development and corporate vice president. Per sources the acquisition will see the chief executive officer of Earn.com, Balaji Srinivasan, joining Coinbase.
This comes in the wake of revelations that there was a bug in the smart contract setup of Coinbase which allowed users to access unlimited Ethereum (ETH) amounts. There are no indications yet that users took advantage of the bug though.
The bug has been in existence for months as it was discovered last year in December by a financial technology firm based in the Netherlands known as VI Company. The Dutch firm was considering giving employees Christmas bonuses in the form of Ether when an issue was detected in the Ether receiving code by researchers. The researchers discovered that it was possible to trick digital wallets into recording transfers and purchases of Ether that had not taken place.
“If 1 of the internal transactions in the smart contract fails all transactions before that will be reversed. But on Coinbase these transactions will not be reversed, meaning someone could add as much ether to their balance as they want,” wrote the Dutch company which found the bug.
After VI Company revealed the bug to Coinbase the company received a bounty worth $10,000. This is not the first time such an incidence is happening. Last month Zaif, an exchange based in Japan, uncovered a bug which allowed the buying of bitcoins (BTC) by users at no charge.
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