United States cryptocurrency exchange Coinbase has announced a new project aimed at increasing innovation in the nascent blockchain industry.
Project 10 Percent will see Coinbase divert 10% of its resources to supporting innovative ideas within the company. The project aligns with the exchange’s philosophy that “70% of our time should be focused on core work, 20% on strategic bets, and 10% on innovative experimentation,” the company said Wednesday.
The project is being rolled out internally by asking Coinbase employees to complete a two-page submission about their potential ideas, followed by a pitch-off style event every year. Projects are considered “disruptive innovation” for their potential impact on the underlying business.
Coinbase made history on April 14, 2021, by becoming the first digital currency exchange to list its shares publicly. Following an explosive debut, the price of COIN has pulled back sharply in the last three trading sessions. Still, Coinbase’s largest investors, including Andreessen Horowitz, Union Square and Ribbit Capital, have already raked in billions in profits.
Despite initial volatility, many within the crypto industry believe that a publicly-traded Coinbase could bridge the gap between traditional finance and digital assets. That could be a boon to digital assets such as Bitcoin (BTC), Ethereum (ETH) and others, which have seen a steady inflow of institutional investors but not enough to change the mainstream’s perception of cryptocurrencies.
Nevertheless, innovation is a key driver of fintech adoption, especially within blockchain. Innovation has given rise to new industries, including nonfungible tokens and decentralized finance, each with their own potential for disruption.