The world’s first ever Bitcoin exchange was established in 2009, ushering the age of digital exchange. Since those nascent years, trading platforms have cropped up to facilitate the extremely volatile currency. In market speak, volatility equals profitability. And wherever there’s money to be made you can bet everything you have that high network individuals will be there. The problem with bitcoin is that the market is too volatile, even for spend-happy institutional investors.
That’s where SFOX comes in to save the day. The company has just raised $22.7 million in a Series A funding. The round was led by Tribe Capital and Social Capital, with participation from Y Combinator, Khosla Ventures, DHVC, Blockchain Capital, Upside Partnership, SV Angel, DCG, Mark Britto, and Airbnb Co-Founder Nathan Blecharczyk.
— SFOX (@SFox) August 16, 2018
SFOX proposes that they shield traders by providing a path to liquidity through OTC desks and market makers. In short, SFOX makes sure that exchanges are backed by cold hard cash. The company also uses proprietary algorithms titled after zoo animals(a gorilla and a polar bear, if you’re curious) that prevent the market from imploding after a large trade.
“Liquidity represents one of the most significant barriers to institutional cryptocurrency adoption,” said Co-Founder and Partner at Tribe Capital, Arjun Sethi. “What has always excited us about SFOX and differentiates them from other players is that they provide access to a global integrated order book, sourced from exchanges, OTC desks, and market makers. This means institutions can trade from a single account and have the ability to buy and sell high volumes without impacting prices. This is exactly what institutional investors looking to embrace cryptocurrencies need today and in the future, as the ecosystem becomes more fragmented.”
To date, SFOX has overseen $9 billion USD in transactions. With the new infusion of cash, it plans to become the go-to platform for all crypto asset management needs. According to their press release, here’s how they plan to spend the $22.7 million.
– Adding additional cryptocurrency pairs and liquidity providers
– Adding trading support in new geographical regions
– Hiring across all departments
“We’ve seen high interest from our clients in expanding their exposure to crypto assets,” said Akbar Thobhani, co-founder of SFOX and CEO at Star Appz Inc. “Institutions need a full service asset management platform that meets the unique needs of cryptocurrency. This is not being fulfilled by traditional tools and current platforms. We’re in a great position to provide these rails. This investment will allow us to pursue this evolution.”