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Kraken, the European fiat-to-crypto exchange, has sent out an exploratory email to key clients, suggesting the possibility of a private offering, according to Finance Magnates. Based on the amount of funding suggested, Kraken may be valued at up to $4 billion.
#Bitcoin-#exchange is preparing for a private placement of securities.
The company sent letters to the big boys customers which told about a new investment opportunity.
The current valuation of the company is estimated at $ 4 billion. pic.twitter.com/FK90iWYkUd
— CryptoWhale (@089kirill) December 12, 2018
Kraken has suggested a minimum investment of $100,000, targeting large-scale clients and accredited investors. The survey deadline is December 16, after which Kraken will provide further information to the respondents and make a decision based on the results. The company claims it does not need money but the current state of the crypto market offers opportunities for acquisitions, Finance Magnates said.
The exchange is an important hub in the crypto ecosystem, offering a fully legal way to exchange digital money into fiat. Miners use the exchange to cash out some of their block rewards. Kraken is also important for having a USDT/USD market, a trading feature that sheds light on the real sentiment around Tether. Additionally, Kraken has a significant Tether wallet holding more than 10.6 million USDT.
The Kraken private funding campaign may also accept funds from large-scale crypto owners, or whales. In a poor climate for initial coin offerings (ICOs), a wider token sale is less likely to raise money. So far, Kraken has relied on private funding, unlike newer exchanges that launched after an ICO.
Kraken also saw some growing pains during peak activity last December and went on to improve its website and trading engines to avoid service outages. The platform now sees daily volumes of $80.7 million, far behind the leading exchanges that easily clock $1 billion in 24 hours. However, Kraken is attractive for listing multiple altcoins.
The financing would come at an unfavorable time for the crypto market, with prices having fallen more than 80% across the board. However, exchanges remain relatively stable, while other startups and developer teams are cutting their spending and firing staff, as in the case of Steemit and ConsenSys.
In February, Kraken completed a financing round that raised $1.5 million, using the funds as working capital and testing new customer products.
Source: CRYPTOVEST (https://cryptovest.com/news/kraken-said-to-be-exploring-private-placement-at-4b-valuation/)