AngelList's ICO "Spin-off" CoinList Raises $9.2 Million In Series A Funding Round

  • Coinlist's Series A drew in $9.2 million
  • Coinlist is now using the money to start its Blockchain-based securities service
  • The company represents a way of solving regulatory nightmares for ICO's 

The amount of controversy surrounding initial coin offerings (ICOs) across the world has caused polarisation among the international community. It's this regulatory uncertainty that makes the success of AngelList's ICO 'spin-off', CoinList, even more exceptional.

During its time being incubated by Angellist, CoinList was successful in completing its series A funding round for $9.2 million. According to the company's owner, the fresh capital will go towards an additional crypto exchange. This one, aimed at the blockchain-based securities market.

The company's press release notes that CoinList's $9.2 million figure includes funds previously raised from venture capital firms, including Accomplice, the Digital Currency Group, Coinfund, and Electric Capital, among others.

What Is CoinList?

The problem that ICOs have is that their companies have to divide attention between their product, and maintaining compliance with shifting regulations. CoinList is positioning itself as a platform for companies and engineers. particularly those looking to develop a token for their business.

To ensure startups can focus on their projects, CoinList conducts anti-money laundering (AML) and know your customer (KYC) checks for them. In the past 12 months, the projects using ConList's platform reportedly raised over $435 million, with Filecoin's ICO standing out after raising nearly half of that amount by itself.

With the technology and means of managing over $850 million in assets, CoinList is providing a method of delegating responsibilities of maintaining regulation, financial management and compliance. The company acts to take the logistics of ICO crowdfunding out of the hands of companies that may feel inadequately equipped to deal with certain issues. 

The company's co-founder and CEO, Andy Bromberg, stated in a press release:

“Now more than ever, companies raising money through an ICO need a platform partner that knows the intricacies of execution and regulation. CoinList provides even more integrity to the startups that have already distinguished themselves, and comfort to the accredited investors that want to commit to [B]lockchain technology."

Andy Bromberg

While serving to prevent more fundraising efforts from companies falling into the Securities and Exchange Commission's (SEC) blacklist. CoinList, through its successful series A funding round, will be able to function as a platform for investors looking to safely buy tokens. 

Crypto Market-Maker Altonomy Receives $7 Million in Funding from Polychain Capital

Altonomy, a New York-based cryptoasset trading, advisory, and asset management company, has completed a $7 million fundraising round from Polychain Capital, a leading hedge fund and venture capital firm.

Co-founded by Ricky Li, a former Manager of Research and Product at the CME Group, Altonomy has also received funding from 7 Blocks.

Additional Capital Will Allow Altonomy to Have More Inventory

Commenting on how the additional capital could help Altonomy’s business operations, Li said: 

As a liquidity provider for altcoins, more funding will allow us to have more inventory, taking larger exposure and managing risk more effectively.

Li added that the extra funding would allow Altonomy’s trading desk to provide better services - as the platform would not need to “put constraints” on customers at settlement.

Funds May Be Used to “Source Liquidity for Customers”

Olaf Carlson-Wee, the Founder and CEO at Polychain Capital, remarked:

As a long-time user of Altonomy’s trading services, it was an easy decision for us to invest in their business when the opportunity became available.

Carlson-Wee, a former Product Manager and Head of Risk at Coinbase, also mentioned that the additional funding would help “source liquidity for customers, regardless of token type, order size, market cap, or whether the asset trades on centralized or decentralized exchanges.”

According to Coindesk, Li had suggested to investors in January 2019 that they “liquidate enough ETH so they would have at least two years of runway.” However, Li is now anticipating that cryptocurrency prices may continue to recover - after enduring a long bear market that lasted throughout 2018.

Altonomy Introduces Cloud Service for Crypto Mining

In addition to providing crypto trading and asset management services, Altonomy introduced a new product last year, called the AltMiner. According to Li, AltMiner’s cloud service allows Altonomy’s bigger investors to mine various cryptocurrencies.

Altonomy’s management claims that the AltMiner has a “superior return profile” with the “newest generation of miners, low electricity costs and a secure hosting site.”

During an interview with CryptoGlobe in May 2019, Lee explained how Altonomy’s crypto trading services were developed and their potential benefits.

One of Altonomy’s main services, called electronic execution, allows mining firms, investment companies and crypto exchanges to “enter and exit positions as an outsourced execution desk.”

As a high-frequency market-maker, Altonomy also provides liquidity for various tokens to several crypto spot and derivatives trading platforms.