$65 million raised by a startup to facilitate crypto trading
The start of 2018 has been a bit up and down when it comes to cryptocurrencies. Whilst December 2017 saw the value of various altcoins reach stratospheric new heights. By mid-January, all markets had lost a considerable amount of value. Despite this kick in the teeth, this did not do much to deter startups or investors. For example, one such crypto startup, Paxos has recently raised $65 million through various venture capital investors, proving that interest in the market is not slowing down.
Established as a big name
In its relatively short lifespan, Paxos has managed to establish itself as a pretty big name. The company specialises in bringing Bitcoin and other currencies into the mainstream, due in part to the fact they have obtained a trust company charter in the state of New York. This part of the states is not known as a particularly crypto-friendly place due to its BitLicense implementation, making Paxos’ achievement all the more significant.
The company started out as a Bitcoin exchange but since then, many things have changed. The main objective of its current business model, the company is looking to enter the world of crypto by exploring new trading options.
Significant interest from VC firms
This latest venture has attracted significant attention from VC firms and their recent round of fundraising was thanks to the help of RRE Ventures and Liberty City Ventures, amongst others. With this new funding, the company is now able to expand its operations and further develop its crypto exchange operations.
Whilst 2018 may not have so far been the year of Bitcoin, the overall outlook for its performance remain positive. Both consumers and enthusiasts are confident that things will change before the end of the year and the success of their recent funding round seems to support this. Afterall, cryptocurrency trading is still attractive, despite the fact it is still extremely volatile with big losses and gains occurring in equal measure.
This new financial injection means that the pressure is on for Paxos and enhancing and developing their position in the crypto industry will be a bit of a challenge. With regulations being introduced on a global scale, companies will be under pressure to adhere to a whole new set of rules. Whether this will be a hindrance to Paxos, or a benefit, is yet to be seen.