Privacy-centric bitcoin wallet Wasabi, launched by zkSNACKs Ltd. in 2018, just lift the first equity investment of Cypherpunk Holdings, a publicly traded Canadian company.
Cypherpunk Holdings CEO Dominic Frisby said the company invested $ 337 500 in exchange for a 4.5 percent stake, valuing startup at $ 7.5 million purse.
“It’s remarkable for a technology company, at the beginning of its evolution, has revenues that Wasabi own,” says Frisby. “It’s the only form of crypto wallet which has a revenue model.”
Although the team did not respond to requests for comment zkSNACKs, co-founder Adam said earlier Fiscor CoinDesk mixer transaction costs the company earned 14 bitcoin in July 2019 alone (about $ 112,000 at current prices). It seems Wasabi purse CoinJoins mixture processed at least 5373 in July, August and early September. If the trend continues for 12 months, it will put more than $ 1 million.
In addition to this latest round outside Cypherpunk ownership, which includes about 2,000 monero and 180 bitcoin, Frisby said, in addition to the equity in the privacy of a rival project Samourai Wallets (worth $ 6.6 million, based on the investment of $ 100,000 Cypherpunk on equity of 1.5 per cent) and blockchain the Chia startup, founded by Bram Cohen cypherpunk legend.
“The two purses, and privacy-enabling services, has a very impressive network effect in that the more participants there are, the more personally each of the participants,” said Moe Adham Cypherpunk CIO. “Wasabi is well positioned to capture much market … not just for personal use but also for the company.”
Frisby said the fund initially focused on providing privacy coins exposure, but found little traction among assets such as zcash and quickly spun to projects that improve privacy for bitcoin network.
“We wanted to make two or three privacy-tech investment more, seeing things like VPN, messaging systems, type of thing,” he said, adding the company is looking to deploy a large chunk of the $ 1.4 million in the possession of a fiat by mid-2020.
In a press release, CEO Balint zkSNACKs Harmat says this new shareholders as a strategic partner to help “create a Bitcoin worth it.”
All things considered, this round proves open source products can go from a volunteer project ignited paid contributor by donating and obtain bitcoin, all the way to the VC-backed startup in about two years, pioneering the bitcoin-centric business model.
“You can not underestimate the effect of bitcoin network,” says Frisby.
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