Coinsetter Inc., a Bitcoin trading exchange, has filed with the Securities and Exchange Commission (SEC) to raise $1.5 million from venture capitalists as the demand for Bitcoin swells, according to a company statement.
Coinsetter’s Chief Executive Officer, Jaron Lukasiewicz, disclosed the financing plans in the company’s publication and explained that, “While the company only plans to raise $1 million, we wanted the option to bring in more and there are commitments on the majority of it. Coinsetter is dedicated to making Bitcoin safe and easy to use for all.”
Coinsetter is currently open only to friends and family, aggregating Bitcoin prices from multiple exchanges, and offering charting tools for market analysis, providing a de facto trading system. The company had already made headlines earlier this year in August, when Coinsetter was one of 22 digital currency companies subpoenaed by New York’s top banking regulator to determine whether new regulations should be adopted for governing the emerging industry.
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Bitcoin Demand Swells Despite Setbacks, Hidden Risks?
The demand for Bitcoin has waxed and waned as of late across global markets leading to widespread fluctuations in the price. As recently as earlier this week in India, the Reserve Bank of India issued a warning on the risks of trading in digital currencies, subsequently causing the country’s biggest Bitcoin exchange to halt its trade of the currency.
However, despite numerous setbacks, venture investors have been actively seeking out Bitcoin-related companies amid a massive surge in the value of the currency. Indeed, there appears to be no lack of investors willing to back the digital currency. Earlier this month, Coinbase Inc., a provider of online Bitcoin accounts, raised $25 million in funding led by Andreessen Horowitz, while Gliph Inc. and BitPay Inc. have reeled in financing from other investors as well.
Bitcoins were introduced in 2008 and have reached a high of over $1,000 earlier this year, after it was traded for only $12 a year ago. The value of Bitcoin is presently trading at around $738.42. The virtual currency isn’t controlled or regulated by any government or central bank and exists as software that can be used to pay for everything from candy to consulting services online. Skeptics point to the risks involved, which include the propensity for money laundering and the potentially sinister uses of such a covertly monitored currency, among them the ability to finance terrorism.