Digital Asset Exchange ShapeShift Raises $10.4 Million in Series A
Digital currency exchange ShapeShift, based in Switzerland, raised $10.4 million in capital from U.S. and international venture capital investors to fund its future expansion. The firm, owned by libertarian and former bitcoin gambling site SatoshiDice administrator Erik Voorhees, allows cryptocurrency users to instantly exchange digital currencies like bitcoin for other altcoins without needing to open an account nor the need for fiat currencies like US dollar, euro or Chinese yuan.
According to the digital currency exchange, the company has grown on average of 48 percent monthly since it launched just three years ago.
The Series A funding, led by Berlin’s Earlybird, also included investors like Lakestar, Access Venture Partners, Pantera Capital, and Blockchain Capital.
ShapeShift already had backing by FundersClub and Digital Currency Group. Erik Voorhees, who has been very successful in Bitcoin, also devoted funds.
The funds will mostly go towards further expansion, the company said. Considerable money might go towards security, as the company did once suffer a hack perpetrated by an inside source, according to an internal investigation.
“When we started ShapeShift, a future world of natively digital assets was very theoretical,” Voorhees said in a statement of the Series A funding. “Yet this world is quickly arriving; one in which millions of forms of digital value, from access keys to tokenized derivative contracts to video game items, will trade between people and machines all over the world, every second of every day.”
More than 40 digital currencies and assets – like bitcoin, ethereum, dash, litecoin, Augur and Monero – are traded on the ShapeShift platform. These assets may be traded for another.
“ShapeShift’s team built a compelling crypto exchange engine which can be easily integrated into third-party products,” said Christian Nagel, partner at Earlybird.
The investment into ShapeShift could signal a second wave of venture capital investment into the digital asset space. (big bank and multinational tech companies investing in blockchain, aside) While the first wave saw VC’s focus on Bitcoin, this second wave, it might be argued, will see a movement into the digital asset space – that is, ‘altcoins’, as cryptocurrency enthusiasts call them for shorthand.
Photo: Erik Voorhees