Cryptocurrency portfolio tracking platform CoinTracker raises $100 million in funding. The firm recently made this news to the public on 27th January. Investments derived by tech-tycoons and institutional investors have put the firm’s net worth to $1.3 billion.
Crypto-oriented businesses have been gaining significant traction even in the bear market. This shows that investors are patient enough to wait for the bullish trend and invest in cryptocurrency firms.
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Complex tax regulations imposed on cryptocurrencies have made it hard for many users to file taxes correctly. For this reason, CoinTracker is playing a vital role in the field. It tracks investors’ portfolios and enables them to see taxes, real-time market value, investment performance, and transaction details.
Expressing the motto behind the fundraising, CoinTracker stated that funds will be used to enlarge the company’s boundaries over different exchanges, crypto sectors, blockchains, and the expansion in personnel and customer support.
The funding round was led by American Venture Capital firm Accel Partners, with new and old investors such as Initialized Capital, Y Combinator Accuity, General Catalyst, and Seven Seven Six.
Valuation Of CoinTracker Reaches $1.3 Billion
Per the stats from June 2020, the global user-base of cryptocurrency has sharply increased to 221 million, who usually trade using various digital currency wallets and exchanges. As a result, many users created complexity for monitoring your portfolio and filing taxes. Jon Lerner, co-founder, and chief executive at CoinTracker, said;
“The biggest issue crypto holders face with tax compliance is that as soon as they transact with crypto beyond a single exchange, calculating taxes accurately becomes extremely difficult.”
Lerner further explained that tax compliance has been deficient in the starting. As Coinbase marked 5.9 billion users in 2015 and users paying taxes over their investment between 2013-2015 were hardly 1,000, per the report issued by Internal Revenue Source.
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CoinTracker is one of the best options for investors wanting to stay tax compliant instead of losing thousands, stated Sagar Sanghvi, board member of Cointracker and partner at Accel Ventures.
Similarly, Coinbase, one of the largest exchanges, recently partnered with CoinTracker to provide its customers with a tax assistant who will adequately account for taxes over capital gains and loss.
But, again, the IRS is the cause for the partnership, requiring US exchanges and other crypto companies to submit details.
Featured image from Bitcoin Magazine and charts from TradingView.com