Kraken
The veteran US-based cryptocurrency exchange Kraken is reportedly in talks to raise more than $5 billion and double its valuation to over $10 billion. Some of the giant names potentially participating in the latest funding round include Fidelity, General Atlantic, and Tribe Capital.
Based in San Francisco, California, Kraken is among the oldest cryptocurrency exchange with nearly ten years of experience. The company could be on its way to more than double its valuation, according to recent Bloomberg report.
Citing people familiar with the matter, the coverage reads that Kraken is currently in talks with prominent names such as Fidelity, Tribe Capital, and General Atlantic to secure the substantial amount.
If the exchange indeed proceeds with the funding now, this would be the first such round in almost two years. Back in 2019, Kraken employed the crypto-friendly investment platform Bank to the Future and raised more than $13 million at a $4 billion valuation. Interestingly, more than 2,000 parties participated in that round.
While Kraken reportedly dabbles with the idea of raising more money through a funding round, another giant US-based exchange, Coinbase, plans to go public through a direct listing.
Earlier this week, BTC and the rest of the crypto market plummeted in value by 20% or more. The primary cryptocurrency dropped from a high of $58,400 to a low of $44,000 and still struggles to recover.
Ethereum also went through a significant downfall as it nosedived from $2,050 to about $1,350. However, there was a flash crash on Kraken, which saw ETH’s price dumping to approximately $700 on the exchange alone.
Naturally, Ethereum investors utilizing the platform weren’t happy as such developments could cause substantial financial losses. Kraken’s CEO Jesse Powell recently gave an interview where he addressed the situation and said that the company will investigate it:
“There were some large dips on Kraken, which we think were probably exacerbated by the availability of margin trading on Kraken and the availability of some advanced order types like stop orders, which many other exchanges don’t have.
We are not really sure why, but we are in the process of investing this – why the volume was greater on Kraken or why there was more cell pressure on Kraken relative to its peers.”