Blockchain.com’s Roller Coaster Ride
Blockchain.com has had quite the adventure in the crypto realm. Recently, the exchange and wallet provider announced it closed a $110 million Series E financing round. That’s a chunk of change, but there’s a catch: this funding dramatically slashes its previous valuation by more than half, down to less than $14 billion from its 2022 high.
The Details Behind the Deal
On November 14, Blockchain.com revealed that the round was led by Kingsway Capital, a UK-based venture capital firm. Not wanting to miss out on the fun, Baillie Gifford, Lakestar, and Coinbase Ventures joined the party as well. This influx of capital comes at a time when the crypto market is experiencing a bit of a revival, despite the 2022 downturn.
The Magical $14 Billion Fall
Back in March 2022, Blockchain.com celebrated a huge victory with a valuation jump from $5.2 billion to $14 billion. Unfortunately, that joy was short-lived, as the crash of Do Kwon’s Terra ecosystem unleashed a cascade of misfortunes for crypto lenders, including the infamous hedge fund Three Arrows Capital (3AC). Talk about a classic roller coaster ride!
Investment Interest: A Sign of Hope?
The recent $110 million raise reflects an interesting trend: despite Blockchain.com’s valuation dip, there’s renewed enthusiasm for investing in crypto firms. This optimism seems to stem from a rebound in digital asset prices, coinciding with pending applications for spot Bitcoin exchange-traded fund products from big players like BlackRock and Fidelity.
The Crypto Landscape Today
As of now, Bitcoin (BTC) has risen a whopping 116% in the past year, while Ether (ETH) and Solana (SOL) have increased by 61% and an eye-popping 300%, respectively. Looks like all that excitement in crypto is hard to resist!
A Strong User Base Amid Challenges
Founded in 2011, Blockchain.com currently boasts 37 million verified users and 82 million wallets on its platform. With over $1 trillion in total transaction value, the firm is undeniably a major player in the cryptocurrency space, even as the market faces its fair share of ups and downs.
