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We’ve seen the rise and fall of Bitcoin(BTC)trade many times in the last couple of years, but BTC’s recent resurgence has propelled the origination of a startup that might make a difference in the crypto world.
With the hope of capitalizing on the recent rise of the Bitcoin price, the co-founder of the mining giant Bitmain, Wu Jihan, has organized a group to develop “Matrixport,” a financial services startup for cryptocurrencies. According to its CEO Ge Yuesheng, Matrixport will function as a one-stop-shop for not just safekeeping of digital assets but also for crypto lending and over-the-counter trading.
The startup has already spun off from Bitmain back in January 2019 but was only launched on the 8th of July. The spin-off was initiated by this year’s troubles of Bitmain, one the largest manufacturer of cryptocurrency mining rigs in the world.
Ge also mentioned that, alongside Bitmain and a couple of other global venture capitalist firms, Wu sis a major shareholder of Matrixport. Both individuals first came across each other back in 2012 when Ge was just an undergraduate, interning for a private equity fund managed by Wu, a founding member of Bitmain with a stake of up to 4% in the firm.
Introducing the Crypto Startup Matrixport
Matrixport has its headquarter located in Singapore, with a team made up of up to 100 people, a lot of whom used to work for Bitmain before they were let go. According to Ge, more information about the funding of the crypto startup will be released at some later point.
Being also a Bitmain shareholder, Ge mentioned in an interview that the origin of Matrixport has close ties with Bitmain. However, since both companies work in different sectors, rather than being competitors, they have become partners. Even with talks from Ge about Matrixport being connected to Bitmain, a representative from Bitmain did not make mention of anything about Wu’s or the company’s partnership with Matrixport.
Matrixport to Raise Interest in Bitcoin
One of the major aims of creating Matrixport is to compete with companies like Genesis Global Trading Inc. and BitGo Inc. This need for a competition is because many crypto companies are steadily moving to build easier and more efficient financial services for both cryptocurrency investors and traders. With Bitcoin’s price tripling so far in 2019, Matrixport is one of the companies hoping to increase mass interest in Bitcoin.
Furthermore, according to Ge, Matrixport will primarily focus on the needs of crypto miners in China using its manpower’s expertise and connections at Bitmain. Also, being incorporated in jurisdictions that cover areas outside China’s mainland, Matrixport evades the ban placed on crypto-trading by the Chinese government.
Since the introduction of Bitcoin about a decade ago, there have been a lot of crypto startups springing up, and Matrixport is just one of the latests. Though Wu has stepped down from his position at Bitmain, he still gets to make profits when the company goes public. And, according to various crypto news reports, the cryptocurrency mining giant Bitmain is looking at getting about $300 to $500 million from selling shares in the U.S in the second half of 2019.
So, let’s just watch how Matrixport fairs with the number of startups already in the industry, and how and if it will cooperate with Bitmain.