In a remarkable stride for the crypto industry, Cube.Exchange, a hybrid crypto trading platform, has secured $12 million in its recent Series A funding round, elevating its valuation to an impressive $100 million. This funding was spearheaded by 6th Man Ventures, with notable participation from GSR Markets, Foundation Capital, ParaFi Digital, Susquehanna Private Equity Investments, Everstake Capital, and others.
From Seed to Series A in Three Months
Cube.Exchange’s journey to this substantial valuation has been rapid. The startup raised $9 million in seed funding just over three months ago. According to Cube CEO Bartosz Lipinski, the company wasn’t actively seeking more funds but responded to significant interest from investors. The entire Series A funding round was closed in under a month after Cube launched its early access mode last November.
Unique Approach to Crypto Trading
Cube.Exchange stands out with its unique approach to crypto trading, designed to shield traders from founder risk, a concern that has plagued the industry following centralized crypto venue collapses. The platform employs a hybrid model, combining off-chain order matching and on-chain settlement.
This innovative approach allows users to retain ownership of their assets without transferring them to an exchange custodial account for trading. Cube’s use of multi-party computation vaults ensures individual wallets for native settlement, holding assets directly on blockchains. This not only provides on-chain visibility for users but also eliminates the need for wrapped assets.
Supported Networks and Reward System
Currently in early access mode, Cube.Exchange settles natively to Bitcoin, Ethereum, Dogecoin, and Solana, with plans to support more Layer 1 networks. The platform rewards users with points that can be redeemed for various rewards, fostering engagement and participation. Cube has recently distributed rewards in tokens like Bonk and GECKO, with plans to continue partnering with listed tokens for rewards pools.
Expansion and Regulatory Compliance
With the fresh injection of funds, Cube.Exchange plans a significant expansion of its 25-member team across various functions. The startup also aims to obtain licenses in additional jurisdictions. Presently, Cube holds a virtual asset service provider license in Poland and a money services business license in Canada. It is already compliant with all requirements for spot trading operations in Australia.
Mike Dudas, founder and managing partner of 6th Man Ventures, who led the Series A round, has joined Cube’s board as part of the investment.
Industry Impact
Cube.Exchange’s rapid rise and innovative approach signal a positive development for the crypto industry. As the platform prepares for a public launch in the coming months, its commitment to user ownership and engagement sets a promising tone.
Conclusion
Cube.Exchange‘s success in raising $12 million in Series A funding not only underscores investor confidence but also positions the startup as a notable player in the evolving landscape of cryptocurrency trading.
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FAQs
Q1.What sets Cube.Exchange apart from other crypto trading platforms?
Cube.Exchange employs a unique hybrid model, combining off-chain order matching and on-chain settlement. This approach allows users to retain ownership of their assets without relying on exchange custodial accounts.
Q2.How does Cube.Exchange reward its users?
Cube.Exchange rewards users with points that can be redeemed for various rewards. Recent programs distributed tokens like Bonk and GECKO, with ongoing plans to partner with listed tokens for additional reward pools.
