Cryptocurrency exchange Kraken is looking to raise capital through a new fundraising round which could see the firm valued at over $10 bln.
According to an initial report from Bloomberg, sources from Kraken have revealed that the exchange is in talks with a number of investment firms including the likes of Fidelity, Tribe Capital, and General Atlantic. The same sources suggested that the company’s valuation could spike from its current value of around $4bln to over $10bln.
The positive news takes some attention away from a flash crash that affected Kraken users in the middle of February leading to calls for remedial action from the exchange.
In 2019 Kraken raised around $13mln from around 2200 investors through online investment platform BnkToTheFuture. Kraken is currently ranked as the fifth biggest cryptocurrency spot exchange according to Coinmarketcap, with its current 24 hour trading volume sitting at over $2.1bln.
Positive news after flash crash debacle
As The Daily Chain reported last week, a couple of Kraken price pairs deviated from their wider market values, with the price of ETH crashing by more than $400 from $1,940, while ADA and BTC also saw price dips that didn’t match the market.
Traders on Kraken went as far as trying to instigate a class action lawsuit against the exchange for the localized market crash. Kraken later indicated that it would not take any action to reverse trades, citing the importance placed on the integrity of the matching process and finality of trading.
The exchange also maintained that it’s investigation of the massive price fluctuations of the trading pairs mentioned above proved that it’s trading engine had processed orders correctly.
“Our market prices are not set by Kraken, but rather by our clients who are the buyers and sellers. Nonetheless, because client satisfaction is one of our top priorities, we are reviewing specific cases and determining how to help clients on an individual basis,” a statement from Kraken read.