The cryptocurrency industry has had a rough start in 2018. After hitting all-time highs in early January, all markets have lost a lot of value. Despite this negative market pressure, startups are still of great interest. Paxos, a blockchain and cryptocurrency startup, recently raised $65m from various VC investors. The interest in cryptocurrency firms is not slowing down, by the look of things.
The Success of Paxos
In the world of cryptocurrency, Paxos has become a relatively big name. The company specializes in bringing Bitcoin and other currencies to the mainstream. This is mainly made possible thanks to the firm obtaining a trust company charter in New York state. That particular region of the US is not too cryptocurrency-friendly, mainly because of its BitLicense implementation.
Considering how the company initially started out as a Bitcoin exchange, a lot of things have changed. Providing services using blockchain is their main objective under the current business model. Even so, the company is looking to enter the cryptocurrency industry once again. To do so, Paxos team members have dedicated a lot of time and resources into exploring new trading options.
It seems this latest venture has attracted the attention of VC firms. Paxos recently closed a $65m funding with the help of RRE Ventures and Liberty City Ventures, among others. With this new funding, the company will expand its operation and further develop its cryptocurrency exchange operations. More competition in the cryptocurrency trading ecosystem can only be a good thing.
VCs Remain Charmed by Cryptocurrency
Even though 2018 hasn’t been the year of Bitcoin, the overall expectations remain positive. Consumers and enthusiasts are confident things will turn around for this industry later this year. This new funding round by Paxos seemingly confirms interesting things could be on the horizon.
The past few years have seen many VCs invest in Bitcoin companies. It appears that trend has also come to a halt in recent months, albeit this latest development shows the interest is still there. Cryptocurrency trading still remains attractive, albeit the increased volatility an cause gains and losses in equal fashion these days.
With this new funding, Paxos will have to live up the expectations. Enhancing the company’s position in the cryptocurrency industry will be challenging. With regulatory measures being introduced all over the world, companies will have to adhere to a new set of rules. Whether or not that will hinder Paxos’ chances of success, remains to be determined.