The current temperature of the cryptocurrency markets has left many wondering what’s going on. Bitcoin price has been declining consistently and is now hovering around $7,000 (compared to its all-time high of close to $20,000). Even with less than impressive market news circulating around, there are still some companies investing heavily in the future of blockchain and raising big money to do so. Let’s take a look at who they are and why they’re doing it.
This one will likely come as no surprise to many involved in the blockchain and cryptocurrency world as the company is on track to have the “biggest ICO ever,” but Telegram has been (and continues to) raising serious funding in the industry. After the most recent round of pre-sales and funding, the company has raised $850 million, putting the current total amount of funds raised to an estimated $1.7 billion.
Telegram’s initial goal for the most recent stage of funding was $600 million, the company managed to surpass their target. The high-value funding appears as a move of not only financial interest in company, but also as solidarity with the platform. Unlike many other large tech companies that have banned crypto-related advertising and ICOs—Telegram has remained a mainstay tool of the industry. Used by major outlets in the cryptosphere like CoinTelegraph and CoinCentral to spread news, the app usage and user base has experienced sizable growth in the crypto world. Additionally, development and marketing teams directly involved with an initial coin offering (ICO) often use the app for spreading relevant ICO information and announcements to investors and the public more broadly. The app recently hit 200 million active monthly users in March.
Like other companies running successful funding campaigns, Telegram is using the funds to continue development in the cryptocurrency and blockchain sphere. The end-goal is to finish development on the so-called “Telegram Open Network” or TON, which is set to be an entire network and platform to be in direct competition with the Ethereum platform.
A well-known name in the social investments area of the financial industry, eToro, has been raising a substantial amount of funding recently for blockchain development. In fact, eToro just closed a round of private funding aimed at expanding into emerging markets and blockchain development that brought in an additional $100 million. The firm, which has developed what it calls “social trading,” offers users the ability to track and emulate the trading strategies of other leading traders in the network, or have their own trading strategies emulated.
After this most recent round of funding, eToro’s funding has reached a total of $162 million dollars to go towards future development. The firm has been operating since 2007 and now has over 9 million users on the platform. This most recent funding increase is the result of an increased demand for expansion into the cryptocurrency markets.
Another firm still raising large funds in the blockchain sector despite recent market decline is Endor. The firm recently closed their token pre-sale after hitting the predetermined hard cap of $45 million. Endor raised a substantial amount of funds by utilizing a crowdfunding technique which continues to grow in popularity: initial coin offerings (ICOs). In the case of Endor, it was an “initial token offering,” as the tokens to be disbursed after the sale will be used on the company’s platform.
Endor is a financial technology firm that focuses on implementing predictive analytics in the strategies for investors and traders alike. Since its inception in 2014, Endor has been working to find business solutions through utilizing the analytical tools they’re developing and the successful funding is giving the team the opportunity to develop the platform and expand the network of contributors.