Australian crypto exchange Coinstash is running red hot amongst investors. Less than a week after opening its equity crowdfunding campaign, the Brisbane-based startup has raised over $2 million, smashing its minimum target of $700,000 and fast closing in on its $2.8 million maximum offer.
Its investors are piling in to be part of one of the first Australian crypto platforms to potentially offer users the ability to earn interest on, borrow and spend (via a “crypto” credit card) their cryptocurrencies. The founders of Coinstash describe its future innovative products as ‘putting people’s crypto to work”.
The company’s funding milestone has come whilst the crypto bull run extends yet another month; both Bitcoin and Etherum have broken all-time highs, astounding both their skeptics and advocates. But is speculating on price the only way you can make money or use your digital assets?
Coinstash co-founders Ting Wang and Mena Theodorou clearly think there is more opportunity than just price speculation.
According to the company’s offer document available for investors, the company has a clear vision on how it plans to broaden the possibilities for its customers.
“We are bringing three revolutionary products to the market – Earn, Borrow and Spend”, says Mena, Chief Technology Officer and co-founder. “They’re all subject to regulatory approval, but in a nutshell, Earn would let users earn a rate of return on their Bitcoin or other cryptocurrencies. Borrow will allow users to post their cryptocurrency holdings as collateral and borrow Australian Dollars or another cryptocurrency of their choice. And Spend will be a Coinstash credit card that allows users to spend their money anywhere in the world, using their cryptocurrency as a line of credit.”
The beauty of it all is, of course, that similar services already exist in the traditional banking world, for example when you go to a bank and apply for a savings account or a lender for a personal loan or a credit card. The actual practice of opening a deposit account, or in the case of borrowing funds putting up your “capital” as security, won’t be anything new to the average user. It’s just that with the Coinstash products, you’re dealing with your crypto assets, rather than the money stored in your bank or putting your real-world asset such as your house, car or credit history at risk.Mena Theodorou, CTO and Co-Founder of Coinstash
When asked if the company’s decision to raise capital during the current crypto bull market had helped to make the raise successful, Ting, the CEO and co-founder, says that there is a lot of planning and execution that are necessary for a successful campaign, regardless of the current market conditions. In fact, the idea to raise funds via equity crowdfunding started in early 2020, and planning began in the second half of that year.
“After the first crypto bull run of 2017, Mena and I realised straight away that there are problems that we can solve for Aussie crypto holders. Yes, there are companies who offer similar products like the ones we propose. Still, the difference between what we want to do and what already exists out there is that our products will be regulated according to local Australian laws, meaning that all our users will be afforded the protection provided under Australian regulatory regime,” explains Ting.
In good times such as now, no one really thinks about what happens if something goes wrong. However, if something does, in fact, go wrong, I think most people would agree that you’d rather your crypto platform be based in Australia and subject to our laws in case you need to turn to them for help, which would be more difficult if the platform is not based in Australia.Ting Wang, CEO and co-founder of Coinstash
Always consider the general CSF risk warning and offer document before investing.
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