Cryptocurrency startup MoonPay reaches a valuation of US$3.4 billion in a new round of financing

MoonPay CEO and co-founder Ivan Soto-Wright speaks at the 2021 Bitcoin Conference in Miami, Florida.

Eva Marie Uzcateji | Bloomberg | Getty Images

Cryptocurrency startups raise funds Record funding This year.

So, it’s no surprise that some of the major players in the field-from the Winklevoss twin virtual currency exchange Gemini to the Ethereum co-founder Joseph Lubin’s blockchain startup ConsenSys-announced Large-scale new financing transactions In the last week.

MoonPay is a relatively new person who is pushing the crypto craze in venture capital to new heights. The three-year-old fintech company said on Monday that it raised $555 million in its first round of financing. The investment led by Tiger Global and Coatue valued the company at $3.4 billion.

The Miami-based MoonPay software was established in 2018, allowing users to buy and sell cryptocurrencies using traditional payment methods such as credit cards, bank transfers or mobile wallets. Apple Pay and Google Paid.

It also sells its technology to other businesses, including crypto sites Bitcoin.com and Irreplaceable tokens (NFT) OpenSea, a model CEO Ivan Soto-Wright called it “encryption as a service.”

Soto-Wright stated that the company’s goal is to make cryptocurrencies available to the public, just like video conferencing tools. Skyrocket Make it easier to make calls via the Internet.

“For blockchain and cryptocurrency, I think we are still in the dial-up era,” he told CNBC in an interview.

“Ultimately, we will reach a place where the value of moving any amount anywhere in the world is frictionless, and the cost will be as close to zero as possible.”

‘PayPal encryption’

With price Bitcoin And other cryptocurrencies have recently hit record highs, and venture capital in startups that power the market is booming.Investors are looking for the next Coin Bank After the cryptocurrency exchange giant Blockbuster listing In April.

MoonPay’s promotion to investors is that it provides a “gateway” for digital assets. Currently, this includes Bitcoin, ether And other digital tokens, such as NFT. But Soto-Wright’s vision is to expand the platform to cover everything from digital fashion to tokenized stocks.

“People call us similar to Paypal, But for encryption,” he said.

Soto-Wright said the company has strong controls and inspections to deal with money laundering issues.The regulator has become More and more vigilant Regarding illegal activities in the market.

MoonPay stated that it has been profitable since the launch of its platform in 2019. After the transaction volume has soared 35 times from 2020, the company’s annual revenue this year is expected to reach 150 million US dollars. Its services are now used by more than 7 million customers.

Despite this, the company still faces fierce competition, especially from financial technology pioneers such as PayPal. Launched its own encryption function last year.

Soto-Wright said he is not worried about competition. He described PayPal as a “walled garden” in which users cannot control their assets. He said: “We believe that the future of cryptocurrency is about customers owning their private keys,” passwords that allow people to access their funds.

IPO ambitions

Soto-Wright stated that MoonPay is prepared for a potential downturn in the crypto market, adding that the company is “agnostic” to the assets it supports.

“Just as telecommunications is disrupted by Voice over IP (Internet Protocol), we believe that financial services and all these different applications will be disrupted by the blockchain over time,” he said.

“As the market tries to discover which assets and which blockchains will eventually be adopted, there will obviously be volatility.”

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