ShapeShift Raises Another US$1.6m in Funding

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ShapeShift has proven to be one of the most popular services to be available in the virtual currency ecosystem today. Having the option to trade Bitcoin and over 40 other virtual currencies intermittently, without having to register for an account or complete a verification procedure, has attracted a lot of attention. Earlier today, news broke about ShapeShift raising US$1.6m in funding to further expand their service.

Also read: Shapeshift Incorporates Ethereum into Altcoin Exchange Platform

ShapeShift Clinches Funding From Roger Ver And Others

It is no secret that there is a lot of venture capitalist funds at play in the Bitcoin ecosystem. This year alone, more VC funds has been invested in Bitcoin projects compared to the amount invested during the entire year of 2014. ShapeShift is the latest company in a long list of companies to receive another round of funding, for a total of US$1.6m.

Back in July of this year, ShapeShift surpassed the US$2m threshold in transaction volume, which is quite an astonishing feat. What makes ShapeShift so attractive, compared to other virtual currency exchange platforms, is the fact that users do not need to sign up for an account. Additionally, ShapeShift refused to deal with fiat currency, whereas other exchanges are more than happy to do so.

But that is not, as all users visiting and using the ShapeShift website remain completely anonymous from one another. Even the ShapeShift team has no idea where these customers are coming from, nor are they interested in finding out. In the end, this platform is far more secure for all parties involved, and transactions are completed much faster.

Putting things into perspective, the ShapeShift platform allow over 1,300 different virtual currency exchange combinations, including popular coins such as Bitcoin, Litecoin, and Dogecoin. Not all of the supported virtual currencies are in high demand all the time, but the fact they are supported on ShapeShift means the company believes these coins hold some potential for the future.

Erik Voorhees, Founder and CEO of ShapeShift, stated the following:

“I launched this project to demonstrate that currency exchange could be handled completely differently than anything done before,” said Voorhees. “Cryptocurrencies allowed non-custodial exchange, without users having to sign up or create accounts. This is impossible with fiat currencies, and yet every Bitcoin exchange was modeled after fiat currency exchanges. ShapeShift, like SatoshiDICE before it, demonstrated how an old business could operate in a brand new way because of the properties of cryptocurrencies.”

Among the list of investors are Roger Ver, Bruce Fenton, Michael Terpin, Trevor Koverko and the Digital Currency Group.

What are your thoughts on this new round of funding for ShapeShift? Let us know in the comments below!

Source: TechCrunch

Images courtesy of TechCrunch, ShapeShift

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