But one venture capitalist is really, really happy with his decision to put money in Coinbase: Garry Tan, managing partner with Initialized Capital, invested in the company back in 2012 when it was founded.
Tan told CNN Business that his firm's first investment — about $300,000 at the time — is now worth more than $2 billion. That's a more than 6,000% return.
Tan met Coinbase CEO Brian Armstrong back when Armstrong was still working for Airbnb (ABNB) — another startup that has enjoyed recent success on Wall Street — and was intrigued by his idea to create Coinbase.
"Brian's very remarkable," Tan said. "It feels like he was walking the right path the whole time and that the rest of the world finally came and joined him."
It's been "surreal" for Tan to see how much the value of his firm's Coinbase investment has risen in just a few years, but he's optimistic that this is just the beginning.
"This is still very early," Tan said. "The crypto world needs Coinbase."