Altcoin News: Kraken Exchange Raised $13.5 Million from 2,263 Investors

June 25, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Kraken cryptocurrency exchange has completed Crowdfunding and raised $13.5 million through the investment platform Bnk To The Future (BF), writes CoinDesk.

A total of 2,263 investors took part in this round. Its main purpose was to further promote the company’s capitalization above $4 billion, said BF co-founder Simon Dixon.

As part of the collection of funding for Kraken, a special legal structure was created that allowed the company to receive investments indirectly. Then these funds were consolidated into a single investor’s capital, which helped to circumvent the registration law requirement. This technique allows Kraken to bypass the SEC requirement that forces it to register as a public company under the 1934 Securities and Exchange Act.

Investors, for their part, did not become shareholders of Kraken and will be able to make a profit only if Kraken enters an IPO or if there is another organization that wants to outbid their share.

“This is a high risk high returns platform — please understand this before investing,” wrote BF representatives in a chatroom dedicated to the equity grab.

Though speculative, Kraken noted that this was also a preferred share class with a liquidation preference, which minimizes some risk.

Initially, Kraken planned to attract $10.2 million but expanded the campaign framework amid increased demand. However, the second goal at $15.45 million it wasn't achieved. About 250 bank transfers are still awaiting processing, after which the total amount of attracted financing is expected to reach $14 million.

Author: Marko Vidrih