Date
21 February 2020
Token offering platform CoinList has raised US$10 million with backing from Twitter and Square CEO Jack Dorsey. Photos: Bloomberg, CoinList
Token offering platform CoinList has raised US$10 million with backing from Twitter and Square CEO Jack Dorsey. Photos: Bloomberg, CoinList

Twitter CEO Jack Dorsey backs crypto startup CoinList

Twitter CEO Jack Dorsey, a longtime Bitcoin advocate, is one of several investors who have backed San Francisco-based cryptocurrency startup CoinList in a new funding round.

The US$10 million funding round was led by venture firm Polychain Capital, with the participation of some existing investors, according to the Wall Street Journal.

Dorsey, meanwhile, is said to have invested in the two-year-old venture for the first time.

With the fresh capital, CoinList plans to launch a cryptocurrency exchange and a cryptocurrency wallet, among other new service offerings.

Having operated on the market since 2017, CoinList provides a platform for digital asset companies, startups, and networks to run and manage their token sales in a more structured way, helping them navigate regulatory rules.

The company claims it follows strict KYC-AML guidelines and conducts only fully compliant token sales from wholly vetted blockchain projects.

Along with the meteoric rise in prices of cryptocurrencies between 2017 and 2018, token sales, also widely known as initial coin offerings (ICOs), have become a popular means for startups and blockchain-themed projects to raise capital.

Following an initial boom, the ICO market has experienced a significant downturn due to a cryptocurrency market crash and tightening regulatory controls worldwide over the new type of fundraising method.

CoinList claims it has supported over US$800 million worth of token offerings since August 2017. With the added capital, it is looking to enter the crypto trading industry with a new exchange platform CoinList Trade, along with a new cryptocurrency wallet.

In a statement to WSJ, Dorsey said: “Crypto needs a trustworthy platform for launching new projects. CoinList leads the industry in that role, and trading is a logical next step.”

Dorsey also serves as the CEO of payments company Square, which launched a separate cryptocurrency business unit, Square Crypto, building its product focusing on Bitcoin, earlier this year.

Square’s mobile payment service Cash App has been steadily earning more money as it allowed users to buy and sell Bitcoin since 2018.

Dorsey reportedly participated in a US$2.5 million seed funding round for Lightning Labs, a startup that focuses on building the Lightning Network technology, a scaling solution for Bitcoin to make it cheaper and faster to use for daily transactions. 

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