Asian crypto information platform CoinNess has secured undisclosed investment in its Series A funding, led by Chinese venture capital ShunWei Capital, with participation from QF Capital and FreesFund. The company said the latest funding round is calculated “in millions of dollars.”
CoinNess said the new investment will help it expand its operations, including its CNNS token that currently supports its user base worldwide. The platform offers its users and token holders access to exclusive investment information of the blockchain and cryptocurrency spheres, and also allows each client to become a contributor to the entire ecosystem.
One of the biggest trends in crypto space in 2019 is that many startups have opted to secure their new funds through the old-fashioned ways, including the venture capital.
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Why did they turn to VCs?
Crypto firms have turned to venture capitalists as the collapse in digital asset values over the past year has made new investments through ICOs, which were once plentiful, drying up for blockchain-related startups including the so-called crypto hedge funds. Retail investors who poured money into crypto assets in 2017, seeking to benefit from a sector-wide boom, are now trying to head for the exits — prompting funds to find other alternatives to stay the course.
In addition, matters for crypto funding worsened as ICOs activities have been under pressure globally as regulators crack down on many projects for conducting unregistered securities offerings.
Peter TAN, CEO of CoinNess, commented that “the new inflow of funding proves nothing but two. One, blockchain is no sharp break from traditional industries, where long-term investors champion promising start-ups. Secondly, CoinNess has adequately proven itself within the past year and will continue its triumph saga in the next five to ten years to be an industry-leading company in the blockchain/crypto sphere.”