Coinbase has acquired Spindl, an on-chain ad network. The acquisition fits Coinbase’s mould as it expands Web3 projects to web3 communities — particularly through its Ethereum Layer-2 blockchain, Base — with which the crypto exchange seeks to aid web3 developers. The terms of the deal weren’t disclosed, but the goal is quite clear: enabling developers to amplify their projects and gain more visibility across the on-chain ecosystem.
Base Blockchain’s Surging Popularity
Since its launch in August 2023, thousands of developers across over 190 countries have already started using the Layer-2 network. The creator of Base, Jesse Pollak, made the acquisition official via X, formerly known as Twitter. He stated that Base had acquired Stratos and did this to add marketing opportunities to Web3 builders so they could further grow their reach. Pollak points out the organic “flywheel” effect of supporting developers: successful on-chain apps attract users, which in turn incentivizes more developers to build, further accelerating the adoption of Web3 technologies.
Spindl’s Role and Expertise
Spindl, founded in 2022 by Antonio Garcia-Martinez, is positioned as the “first truly on-chain advertising network.” Martinez, who was an early member of Facebook’s ads team, has brought his expertise in audience and keyword targeting to Spindl. The platform allows developers to track user acquisition sources and understand customer behavior, from initial clicks to on-chain actions like NFT purchases or token staking.
Coinbase will utilize Spindl’s “Flywheel” protocol to provide a holistic advertising solution for developers in marketing Web3 projects and will reward developers based on engagement created within the Base ecosystem. Spindl will be a product team at Base but will still work with projects across multiple chains and platforms to ensure broader support for Web3 campaigns.
Strategic Implications for the Web3 Ecosystem
By integrating Spindl’s marketing tools into Base, Coinbase is not only assisting developers to get more visibility for their Web3 projects but is also bolstering the overall ecosystem. Being able to track, understand, and act on user behavior in a seamless way across Web3 platforms is one of the necessary steps toward on-chain application adoption.
This acquisition is another milestone in Coinbase’s efforts to further establish itself in the Web3 space and support the growth of decentralized applications. As adoption of Web3 increases, the ability to drive user engagement through targeted marketing will be key to the success of projects built on Layer-2 networks like Base.