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. 

BlockFi Updates Terms of Service for Its BTC and ETH Interest Accounts

On Tuesday (April 23), FinTech startup BlockFi announced new terms of service for its Bitcoin (BTC) and Ether (ETH) interest accounts, and said that it had made the BlockFi Interest Account (BIA) available in India.

BlockFi, which is based in New Jersey, United States, was founded in July 2017 by Zac Prince (CEO) and Flori Marquez (VP of Operations) and launched in August 2017. Among others, it is backed by ConsenSys Ventures, Fidelity subsidiary Deonshire Investors, Morgan Creek Digital, and Mike Novogratz's Galaxy Digital. 

In April 2018, BlockFi started offering USD loans collateralized by your cryptoassets (Bitcoin and Ether). Roughly six months later, it expanded the range of cryptoassets that it accepts as collateral to Litecoin and stablecoin Gemini dollar (GUSD).

Then on March 4, BlockFi launched the BlockFi Interest Account (BIA):

... users can securely store their Bitcoin or Ether at BlockFi and receive 6% annual interest, paid monthly in cryptocurrency. Interest earned in a BIA compounds monthly, delivering an industry-leading APY of 6.2%. The program has been in private beta since the beginning of 2019 and already holds over $10 million in assets from retail, corporate, and institutional crypto investors."

BlockFi said that this product offered the following advantages over competitors:

  • compound interest
  • institutional backing
  • interest paid monthly in crypto (i.e. in BTC if you have a Bitcoin interest account and in ETH if you have an Ether interest account)
  • no-notice withdrawals

We also found out via the FAQ section of the BlockFi website that although "there is no minimum or maximum deposit for the BlockFi Interest Account," only "deposits over 1 BTC or 25 ETH will accrue interest" and that "6% interest will only be earned on balances below 250 BTC or 7500 ETH."

Sadly, on March 20, some bad news was announced for holders of the BlockFi Interest Account with large balances (over 25 BTC or over 500 ETH). 

BlockFi said that since the launch of the BIA program, it had discovered that "approximately 75% of BIA clients have a balance of less than 5 BTC or 150 ETH," and that the "median account balance is $7,000 USD."

Furthermore, it had seen "unanticipated demand from businesses like crypto hedge funds and VC firms," and realized that these firms open large BlockFi interest accounts "as a way to bolster their returns." 

BlockFi added that "starting April 1st, only BIA balances of up to and including 25 BTC or 500 ETH (equivalent to roughly $100,000 and $70,000 respectively) will earn the 6.2% APY interest rate," while "balances over that limit will earn a tiered rate of 2% interest."

The second bit of bad news—this one affecting everyone not just BTC/ETH whales—was that from April 5, it will be "adding a flat withdrawal fee of 0.0025 BTC and 0.0015 ETH."  

In today's announcement, BlockFi had several interesting things to say:

  • As of April 2019, BlockFi is holding $53 million in crypto deposits for its clients in BIAs, and these funds are earning interest every day.
  • BlockFi is "retroactively" (as of April 1) reducing the minimum balance requirement for the Bitcoin BIA from 1 to 0.5 BTC. It hopes to reduce this minimum balance limit even further in the near future.
  • For Ether BIAs, from now on, only balances up to 250 ETH will earn the higher interest rate (i.e. 6.2% APY), whereas balances over this limit will earn only the lower interest rate (2% APY). BlockFi says that its "ability to pay interest to our clients is based on crypto market lending conditions," and since (1) it needs to "work with institutional counterparties to generate this yield" and (2) "demand for borrowing ETH has dropped" during the past month, its has no choice but to adjust "ETH tier rates" accordingly.
  • The BIA product is now available in India. This brings the total number of countries served by BlockFi to 65.


Featured Image Courtesy of BlockFi