According to a recent press release, after closing its most recent funding round, the Japanese cryptocurrency trading platform Liquid is now valued at over $1 billion.
The first series C funding round which was led by venture capital firm IDG Capital follows a previous round that secured the company $20 million from various partners. According to Bloomberg, the latest round helped raise a further $50 million from mining chip manufacturer Bitmain as well as IDG Capital. The 2017 sale of its native cryptocurrency for $100 million also helped add to Liquid’s overall valuation.
Bitcoin CFD Launch
Liquid, which started life in 2014 as a subsidiary of fintech firm Quoine, also recently announced it will be offering Bitcoin contracts-for-difference (CFD’s). Dubbed Liquid Infinity, the new service will give traders the chance to hedge bets against Bitcoin’s price movements against the U.S. dollar and Japanese Yen. It further offers 100x leverage on positions, a controversial feature that has often been restricted via regulations in other countries.
The addition of 100x leverage means traders can maximize their risk/reward ratio but is an extremely risky feature to use for unseasoned investors. However, Liquid says it offers several management tools such as stop-loss orders and indicators to reduce its customer’s exposure to risk.
“Infinity will enable traders to amplify their risk-to-reward ratios with the existing risk management tools we have in place for our margin product, such as stop-loss orders and other advanced charting indicators,” claims Liquid Chief Product Officer Mario Gomez Lozada.
Liquid’s $1 billion valuation gives the fully licensed and regulated exchange ‘unicorn’ status – a term created due to the extreme rarity of private startup reaching such a high valuation. It joins other famous tech startup unicorns such as Uber, Airbnb, Coinbase and Stripe.
The news comes at an exciting time for the cryptocurrency, with the market adding over $40 billion in value over the past two days. Many analysts predict the impressive rally indicates the end of a year-long bear market that wiped 80 percent off the price of most assets.