According to the exchange, it was its most successful funding round by individual donors, with over 2,200 participants recorded. BF co-founder Simon Dixon said that this was part of its efforts to achieve a valuation over USD 4 billion to fund new acquisitions.
Its last acquisitions were US market data and trading company CryptoWatch, and London-based derivatives and futures trading platform Crypto Facilities, and it now boasts over USD 85 billion in annual trading volume (2018) from over 4 million customers across the world, making it one of the busiest exchanges of its kind.
Its ambitions are now to expand to provide additional financial services and products for the crypto sector, primarily through BF’s creation of a Special Purpose Vehicle for Kraken to receive illiquid investment in the form of investor equity. This pools all individuals to represent them as a single investor, bypassing SEC’s requirement that would otherwise have required they register under the 1934 Securities and Exchange Act as a public company.
Effectively, this means none of them is a shareholder in Kraken and will only see returns if the exchange lists through an IPO, or is bought over, or has its management bought out. BF spokespersons noted: “This is a high risk high returns platform – please understand this before investing.”
An investor email also stated::
“CryptoWatch Premium membership, the ability to leverage shares for margin collateral, priority service from our client support team, invitation to Kraken’s exclusive investor chat room, subscription to Kraken’s Daily Hash newsletter and OTC Daily report, bi-annual Kraken investor update, beta access to new Kraken products and features, limited edition Kraken swag, [and] 5% investment rebate in KFEE.”
Kraken originally looked for USD 10.2 million but market interest prompted them to increase that figure. Dixon did say that some 250 bank wires were pending and would take the total to USD 14 million.
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