Crypto startup MoonPay valued at $3.4 billion as bitcoin mania soars. This year, cryptocurrency start-ups have raised record amounts of money.
Thus, it comes as no surprise that some significant participants in the space. Ranging from Gemini, the virtual currency exchange founded by the Winklevoss twins. To ConsenSys, the blockchain start-up founded by Ethereum co-founder Joseph Lubin. Have announced massive new funding deals in the last week.
MoonPay, a relative newbie to the cryptocurrency space. Is pushing the crypto craze in venture capital to new heights. In its first-ever financing round, the three-year-old fintech company. Raised $555 million, according to the company’s announcement Monday. The transaction, which was led by Tiger Global and Coatue, places a $3.4 billion value on the company.
MoonPay, a Miami-based company founded in 2018, provides software that allows users to buy. And trade cryptocurrencies using traditional payment methods such as credit cards. Bank transfers, and mobile wallets such as Apple Pay and Google Pay.
This includes cryptocurrency website Bitcoin.com and non-fungible token (NFT) marketplace OpenSea. A business model that CEO Ivan Soto-Wright refers to as “crypto as a service.” The company also sells its technology to other firms. Such as Bitcoin.com and NFT marketplace OpenSea.
As explained by Soto-Wright, the company’s goal is to make cryptocurrency more available. To the general public in the same way that video-conferencing technologies such as Zoom. Have made it easier to make phone conversations over the internet.
As he explained in an interview with CNBC, “I believe we are still in the dial-up days. When it comes to the blockchain and cryptocurrencies right now.”
‘PayPal for crypto’
With bitcoin and other crypto startup MoonPay hitting record highs recently. Venture capital investment in market-leading start-ups is rising. Investors are hunting for the next Coinbase after its successful April offering.
MoonPay touts itself as a “gateway” to digital assets. For present, that includes bitcoin, ether, and NFTs. It will eventually incorporate digital fashion, tokenized stocks, and other services.
“We’re like PayPal for crypto,” he remarked.
Soto-Wright said the corporation has excellent anti-money laundering systems. Regulators are concerned of market manipulation.
MoonPay says it has been profitable since its 2019 launch. The firm’s sales is expected. To surpass $150 million this year, growing 35-fold from 2020. More than 7 million people now use its service.
It confronts fierce competition, including finance leaders like PayPal. Which launched its own crypto capabilities last year.
Soto-Wright is unconcerned about competition. He called PayPal a “walled garden”. That called PayPal a “walled garden”. “We believe the future of crypto is customers owning their private keys,” he stated.
MoonPay wants to use the funds received to develop new products and expand. Soto-Wright claims the firm already plans to go public. “We hope to go public one day,” he stated.
However, cryptocurrency is extremely volatile, affecting even the most well-known participants. Quarterly sales of Coinbase fell short due to fewer monthly users.
Bitcoin peaked at about $69,000 earlier this month, but has since fallen roughly 17%. Ether, however, is down 13% from its peak.
MoonPay is “agnostic” about the assets it supports, according to Soto-Wright.
“In the same way that voice over IP (internet protocol) destroyed telecoms. We believe blockchain will disrupt financial services and all these diverse applications,” he said.
“There will be volatility as the market tries to figure out what assets and blockchains will be adopted.”