Kraken also mentioned the company’s plans to support technologies such as AI, machine and deep learning, and cybersecurity.
Reports have revealed that Kraken, one of the biggest US-based cryptocurrency exchanges, is on the lookout to multiply the valuation of the company to over 10 billion dollars.
As per a reliable source, Kraken’s plans for a funding round could see the company surge to an approximate value of over 20 billion dollars as demands grow high. Bloomberg published a report citing many unknown sources that give detailed information about Kraken’s new fundraiser plans. According to the sources, Kraken discusses major investors who can get the company to their expected valuation. So far, Fidelity, Tribe Capital, and General Atlantic are the top investors known to discuss the fundraiser with Kraken.
Kraken’s fundraiser story came amidst the expected Coinbase‘s direct listing, as secondary trade in privately-held shares recently carried Coinbase’s market value to soar above 100 billion dollars. According to the crypto market data aggregator, Coinbase made more than 3.8 billion dollars in volume over the last 24 hours. Whiles Kraken saw a volume of 2 billion dollars at the same time.
In 2019 Kraken raised 13.5 million dollars from over 2000 partakers at a value of 4 billion dollars. The company at that time utilized the investment platform Bnk to the Future to make the funding round. The crypto exchange company recently announced the launch of a venture fund to invest in crypto and fintech startups in their early stages. Kraken explicitly sought startup companies in fintech, crypto protocols and decentralized finance in the quist to invest between 250,000 dollars and 3 million dollars.
Kraken, in the announcement, also mentioned the company’s plans to support technologies such as AI, machine and deep learning, and cybersecurity. Though Kraken is critical of its soaring valuation, users of the exchange got infuriated by the exchange’s platform’s recent flash-crash. The unfortunate crashes restricted users to the exchange, causing leverage trades to liquidate as the entire crypto market experienced a sharp retrace.
Many traders on the exchange reacted to the crash, threatening to take on the crypto exchange in organized legal action. Other trades of the crypto exchange also found the inability to access the exchange so frustrating and, in effect, called on the company to compensate for their loss.
Kraken has, however, declared that they would not refund losses or roll back trades to any user regardless of the many talks to refund affected users.
Experienced Writer with a demonstrated history of working in the financial services and the technology industry.