The cryptocurrency exchange in the United States Coinbase has announced a new project to increase innovation in the nascent blockchain industry.
The 10% project will see Coinbase divert 10% of its resources to support innovative ideas within the company. The project aligns with the exchange’s philosophy that “70% of our time should be spent on grassroots work, 20% on strategic bets and 10% on innovative experimentation,” the company said on Wednesday.
The project is rolled out internally by asking Coinbase employees to complete a two-page submission on their potential ideas, followed by a pitch-off style event each year. Projects are considered “disruptive innovations” for their potential impact on the underlying activity.
Coinbase made history on April 14, 2021 when it became the first digital bureau de change to list its shares publicly. After an explosive start, the price of COIN has fallen sharply over the past three trading sessions. Yet Coinbase’s biggest investors, including Andreessen Horowitz, Union Square, and Ribbit Capital, have already reaped billions in profits.
Despite the initial volatility, many in the crypto industry believe that a publicly traded Coinbase could bridge the gap between traditional finance and digital assets. This could be a boon for digital assets such as Bitcoin (BTC), Ethereum (ETH) and others, which have seen a constant influx of institutional investors but not enough to change the general public’s perception of cryptocurrencies.
Nonetheless, innovation is a key driver of fintech adoption, especially within blockchain. Innovation has spawned new industries, including non-fungible tokens and decentralized finance, each with their own potential for disruption.