In recent news, a cryptocurrency company by the name of Amber Group is now the latest one to join in on the trend of investing massive amounts of money into cryptocurrency-related projects and services. Amber Group is a cryptocurrency trading start-up based in Hong Kong.
The Series B round of funding had been spearheaded by China Renaissance, and assistance had been provided by numerous high-profile venture funds. These included the likes of Tiger Global Management, Tiger Brokers, Gobi Partners, Sky9 Capital, DCM Ventures, and Arena Holdings. Coinbase Ventures had been one of the initial investors during the Series A round back in 2019, one that managed to generate $28 million. Now, Amber Group has managed to obtain a $1 billion pre-money valuation.
Funds to be used for expansion purposes
Michael Wu, the CEO and co-founder of Amber Group, had stated that the aforementioned investment should be utilized for the purposes of expanding worldwide operations in a continued effort to satisfy client demand as well as develop new market solutions pertaining to the leading cryptocurrency companies and investors.
Moreover, the cryptocurrency start-up shall also be serving both retail and institutional investors. As such, the products provided include but are not limited to electronic market-making, borrowing and lending, OTC trading, derivatives, high-frequency trading, and algorithmic trading. Additionally, the mobile trading application that had initially been launched last year has also managed to gain more than 100K registered users. Annualized revenues of about $500 million were also linked to the firm.
The move by Amber Group comes around the time when the cryptocurrency market continues to experience a downtrend which has been continuing since this past weekend. Many cryptocurrencies have experienced significant losses as the overall market cap decreased by $230 billion (roughly about 14%), with more losses expected to come before long.
Bitcoin (BTC) along with Ethereum (ETH) has dropped considerably in price to $32,724 and $1,967 respectively as of now, which is indicative of a 4.3% and 6.5% dip for the two leading cryptocurrencies.
Still, venture capitalists often tend to adopt a more macro perspective, and as such, try to focus on the long term whilst simultaneously looking beyond any fluctuations for the short term. Substantial amounts of further funding are expected to be poured into the crypto industry and world of decentralized finance (DeFi) in the future, despite the recent losses experienced.