Amber Group said that it has raised $100 M in its Series B funding round with a $1B valuation.
China Renaissance led the Series B funding round. But other crypto venture funds, such as DCM Ventures, Tiger Global Management, Tiger Brokers, and Gobi Partners, also participated.
Hong-Kong-Based Cryptocurrency Trading Startup
Even though major cryptocurrencies are experiencing a major price drop, more and more investors are considering bitcoin an investable asset. Some mainstream venture capital firms are now investing in crypto.
On Monday, Amber Group, a cryptocurrency trading startup, raised $100 million in its Series B funding round. The company raised only $28 million in its Series A funding. With that in mind, the recent valuation is 10 times the first valuation in 2019.
During the first round, Amber Group counted Coinbase Ventures as one of its investors. But the Series B financing involved some high-profile VC firms.
In May, another crypto asset manager in Hong Kong has managed to procure $40 million in funding from big-name investors, such as Tiger Global.
Amber Group is made of young investment bankers. The startup used machine learning algorithms for quantitative trading at first. However, it altered its approach to crypto in 2017 when the group saw an increase in virtual currency trading volumes.
Currently, the startup serves individual and institutional investors. The platform offers high-frequency trading, algorithmic trading, borrowing and lending, and many other products.
Expanding global Operations
Amber Group said that the latest funds will be used to help the platform expand globally and meet the demand of its clients and provide solutions for crypto investors and companies.
The startup accounts for “2 to 3% of total trading volumes in major spot.” It also continues to see growth. Its cumulative trading volumes doubled to over $500 billion from $250 billion.
In 2020, the startup launched its mobile app to widen its scope. Instead of focusing on institutional clients, it’s also serving retail consumers with the introduction of its mobile app.
Currently, it has gathered more than 100,000 registered users.
Since it started, the startup has been profitable. It has a yearly revenue of $500 million.
Is Crypto a Good Investment?
If you want to get filthy rich, it’s possible to achieve it by investing in cryptocurrency this year. However, you might still lose a lot of your money.
It means that crypto is both profitable and risky. Some experts consider it a good investment if you wish to be exposed to the demand for digital currency.
However, they still believe that the safer alternative is still buying stocks of companies that have exposure to cryptocurrency. Another safer form of crypto would be gold cryptocurrency, which is tied to the price of gold.
It’s not entirely safe to invest in it. However, there are signs that it’s here to stay.
Although it has inherent risks, cryptocurrency is growing stronger. Both professional and individual investors are getting the tools that they require to manage and protect their crypto assets.
Owning some cryptocurrency can help in increasing your portfolio’s diversification. Still, you need to conduct thorough research to know why such currency will be here for long.