A group of former Morgan Stanley traders managed to turn their cryptocurrency startup into a unicorn, bringing Wall Street strategies to the new world. Amber Group, founded in 2018, raised $ 100 million from various investors including DCM Ventures and Tiger Global Management, with a valuation at $ 1 billion, which is tenfold its value in just 18 months. The Series B fundraiser also includes China Renaissance Group, Tiger Brokers, Gobi Partners and existing lenders such as Coinbase Global Inc. and Pantera Capital, Hong Kong-based Amber said.
The startup has been profitable since its first day of operation and now has a net margin of more than 60%, CFO Kullander said. This is largely thanks to its market-neutral strategy, which is to trade on the volatility rather than the highs or lows of Bitcoin.
What Amber Group does
Amber trades coins such as Bitcoin and Ether using both the client’s money and her own capital. The startup manages approximately $ 1.5 billion in trading capital, and expects revenue to increase tenfold to $ 500 million this year. Five of Amber’s founders – Michael Wu, Tiantian Kullander, Wayne Huo, Tony He and Luke Li – worked together on Morgan Stanley’s Hong Kong fixed income trading plan. The sixth, Thomas Zhu, is a former Bloomberg developer. (fonte: finanzaonline.com)
Dogecoin, unlike most other currencies, was actually created as an alternative to traditional currency. According to its creators, “the Dogecoin community wanted to have a cheaper and safer way to buy goods online.” Unlike most alternative currencies, it has not gone through an exchange process, meaning it can be easily traded without using real money. Dogecoin, therefore, was created with the idea of being a cheap and reliable source of money. Dogecoin is basically an exchange rate between two currencies. It uses a hybrid system called a “proof of work” or “minting” process in which a certain amount of coins are produced out of thin air. Dogecoin’s market capitalization is currently valued at nearly $ 8.5 million.