CoinDesk reports that decentralized crypto exchange ShapeShift has raised £525,000 ($793,000) from Barry Silbert’s Digital Currency Group and Roger Ver.
The Swiss-based exchange has no user accounts, logins or order books. Users can swap between 25 different digital currencies and tokens, the exchange acting as a “vending machine” for the transfer. At any given time, the exchange indicates how much “liquidity” is available, which is replenished accordingly. There is no fiat involved in the operation. The exchange runs entirely on bitcoins and reportedly has no bank accounts.
The idea of the setup is to avoid playing custodian over client funds. Millions have been lost on bitcoin and altcoin exchanges due to hacking-related theft of coins under their care.
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Over the past six months, the exchange has reportedly experienced a monthly increase of 30% in traded volume.
With the news, Bitcoin entrepreneur Erik Voorhees has come forward as the exchange’s creator and operator. He previously worked under the alias Beorn Gonthier. He claimed that in the early days of the venture he wanted the focus to be on the exchange, not on him.
For a detailed list of recent investment and M&A activity in the crypto industry, please visit the DC Magnates Crypto Deal Table.