Coinbase Alphabet tie-up: AMZN stock slides as GOOGL crypto payments deal with COIN dumps cloud rival AWS
15:16, 11 October 2022
The cryptocurrency exchange Coinbase (COIN) and Google Cloud (GOOGL) have announced a major long-term partnership to enhance the Web 3.0 presence of both organisations.
However, as part of the partnership, Coinbase will halt its use of Google Cloud’s competitor, Amazon Web Services (AWS).
Amazon's (AMZN) stock suffered when the market opened on 11 October.
AMZN to USD
AMZN abandoned
Jim Migdal, the vice-president of business development at Coinbase, said the exchange was moving its data-related apps from Amazon to Google, according to CNBC.
Coinbase has used AWS for its cloud computing needs since 2014. A former Coinbase director, Rob Witoff, who no longer works at the company, previously said: “In three years, our bitcoin wallet base has grown from zero to more than three million. We’ve been able to drive that growth by providing a fast, global wallet service, which would not be possible without AWS.”
The Coinbase team chose Google for its security, open-source projects, and “robustness of their compute platform”, according to a statement from the exchange.
The news comes after a Coinbase documentary on Amazon Prime, which launched on Friday 7 October.
AMZN’s stock suffered a 2.9 per cent drop. It closed at $113.72 on the 10 October and opened today at $113.62. It then fell to a low of $110.33, according to Capital.com’s trading platform.
The Google partnership details
With a focus on Web 3.0, there were a number of different angles announced as part of this “long-term, strategic partnership”.
Coinbase’s commerce platform will enable Google Cloud to start allowing clients to pay for their services with “select cryptocurrencies”. Coinbase Commerce currently supports 10 different cryptocurrencies, including bitcoin, ethereum, and dogecoin. Google will first make this option available to those in the Web 3.0 industry.
Meanwhile, Coinbase will be able to utilise Google’s infrastructure to “build advanced exchange and data services”. It is hoping to leverage Google’s network to efficiently process blockchain data and give customers improved crypto insights.
Coinbase’s stock saw a large spike after the announcement. After closing at $66.92 the previous day, COIN jumped to a high of $72.92 on 11 October.
It has since corrected slightly and was hovering around the $68 mark, at the time of writing.
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