Interesting funding alert- A cryptocurrency startup announced a funding of USD 12.5 million
Cryptocurrency has been covering many pages of the newspapers. It has become a trending topic! It has become the new topic of conversation nowadays!
Let us talk about cryptocurrency. First of all, we should explain what cryptocurrency is. Cryptocurrency also called crypto is defined as a collection of binary data which is designed to function as the medium of exchange. Cryptocurrency is a fiat currency, which means it is neither backed by nor is convertible into commodities. There is no physical existence of a cryptocurrency like paper money and there is no central authority that issues a cryptocurrency. The first decentralized cryptocurrency is Bitcoin, which was issued in the year 2009. After the release of Bitcoin, many other cryptocurrencies have also been issued.
According to The Financial Action Task Force, cryptocurrency-related services are defined as virtual asset service providers. Now coming to the market of cryptocurrency, the global cryptocurrency market is expected to reach a growth of CAGR of 30.32% by the year 2030. In the year 2020, the market value of the cryptocurrency market of the world was USD 842.36 million and it is predicted that it will reach USD 3474.31 million by the year 2030.
Now coming to the cryptocurrency market of India, the market is growing and is expected to reach USD 241 million by the year 2030. The cryptocurrency domain till then will also be a huge source of employment and will be able to provide jobs to around 877000 people. The cryptocurrency industry in India has grown by 39% in the last five years and has reached USD 74.2 million in the year 2021. The investments made by the retail investors in the crypto-assets have reached the value of USD 6.6 billion and are expected to increase to USD 15.6 billion by the year 2030.
This industry has more than 230 Indian startups working and almost USD 270 million has been invested in these startups till the year 2021. Around 1.8% of the adult population of our country has been making investments in cryptocurrency till the year 2021. This percentage is actually a growth of 2.2 times in a year. Around 3.9% of the world population of the country is the owner of the cryptocurrency and its related assets and Bitcoin is the fifth largest currency by market capitalization.
Let us talk about the funding of a cryptocurrency startup that has taken place recently and has been much covered in the news.
Announcement of funding of a cryptocurrency startup
The startup, Stader Labs has raised funds worth USD 12.5 million, which is equivalent to INR 92 crore, as announced on January 21, 2022. This round of funding that has taken place was the result of strategic private sale and was led by Three Arrows Capital.
The other participants of this round of funding were Blockchain.com, Accomplice, Digital Asset Capital Management (DACM), GoldenTree Asset Management, Accel, Amber, 4RC, and Figment. Some angel investors were also a part of this round of funding. The angel investors included the co-founder of FalconX, Prabhakar Reddy, and Matt Cantieri, who is from Anchor Protocol.
The startup plans to use the funds raised in the cross-chain expansion. The startup also plans to use a portion of the funds raised in the hiring of new talent and even in building the developer ecosystem. The value of the startup after this round of funding has come up to USD 450 million.
Before this round of funding, the startup had raised USD 4 million in October 2021. That round of funding was the seed round of funding and the investors in that round of funding were Pantera, Coinbase Ventures, Jump Capital, True Ventures, Hypersphere, Proof, Ledger Prime, Huobi Ventures, Solidity Ventures, and Double Peak. The value of the startup post that round of funding was USD 50 million.
About the cryptocurrency startup that has announced its funding
The startup, Stader Labs was founded in April 2020 by Gajjala, Dheeraj Borra, and Sidhartha Doddipalli and has its headquarters in Bengaluru. The startup is engaged in offering the most convenient and safest way to maximize the returns on the staking. The startup is focused on building financial protocols that are decentralized and applications that make sure there is efficient stake management on public blockchain networks.
The startup currently uses the blockchains of Terra. It has plans to build native smart contracts for putting stakes on many blockchains, like Solana, Ethereum, Polygon, and many others. The startup has the aim to cover five or six more blockchains in the period of next year. The startup also wants to build an ecosystem that will help it grow and develop solutions like redirection with rewards, liquid staking, gaming, launchpads, and many more.
The partners of the startup are Pantera, Coinbase Ventures, Jump Capital, Ledger Prime, Double Peak, Proof, Solidity Ventures, Huobi Ventures, and True Ventures.
About Three Arrows Capital
Three Arrows Capital is a hedge fund that was established in the year 2012 and was founded by Su Zhu and Kyle Davies and has its headquarters in Singapore. The hedge fund is engaged in providing superior risk-adjusted returns.
The startup is serving the needs of the present times. It is catering to the present investment demands. The startup is doing great and we wish the startup a piece of good luck and a bright and successful future ahead.
Edited and published by Ashlyn