CoinJar Secures A$500,000 Seed Round Led by Australian VC Firm Blackbird Ventures

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CoinJar Secures A$500,000 Seed Round Led by Australian VC Firm Blackbird Ventures
CoinJar Secures A$500,000 Seed Round Led by Australian VC Firm Blackbird Ventures

CoinJar Secures A$500,000 Seed Round Led by Australian VC Firm Blackbird Ventures

CoinJar, a startup company based in Australia has announced that it will receive “Australia’s first major Bitcoin investment.” The news came when the company signed a deal with local venture capital firm Blackbird Ventures to the tune of A$500,000 i.e. US$455,000. Founded in February 2013 by local entrepreneurs Asher Tan and Ryan Zhou, CoinJar is making great inroads in the Bitcoin economy.

According to the company sources say the money will come from a group of individual investors with years of technology and startup experience. Some angel investors that participated in the round include entrepreneurs like Torsten Hoffman, RetailMeNot founders Guy King and Bevan Clark, game developer Rob Murray, and technology investor Chris Hitchen.

CoinJar provides complete security as it is encrypted with SSL and has Two-Factor Authentication; however, up to now this company is provides its services in Australia and not elsewhere. Currently, it charges a two percent flat fee for buying and 1.1 percent for selling and comes with the ‘CoinJar Fair Rate’, which according to it is a proprietary exchange rate purportedly reflecting the true price of Bitcoin.

CoinJar Fair Rate

A company source says that ‘CoinJar Fair Rate’ enables it to offer Bitcoin at prices and fees lower than that of other Australian exchanges such as SpendBitcoins, Omnicoins, and Buy Bitcoin Australia. In fact, ‘CoinJar Fair Rate’ has become extremely popular among customers that within six months’ time it has done over $1.82 million in trades.

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Currently, CoinJar’s wallet can be used by iPhone users and comes with some unique features. Moreover, as it is a ‘managed wallet’, customers don’t need the downloading of the Blockchain, a public ledger containing a record of all Bitcoin transactions in history, to work. The new development in the company will help it expand its operations and reach.

In a statement CoinJar CEO Tan said that Bitcoin is maturing into something real businesses can and should use every day to ease transaction hassles and fees. Now that Bitcoin is scaling new heights every passing day, the company feels that any investment to boost its operation is welcome.

According to CoinJar CEO it is only a matter of time until business and consumers take full advantage of Bitcoin as a solution to digital payments. He also opines that Bitcoin is moving past a purely speculative play. It is only a matter of time until business and consumers take full advantage of Bitcoin as a solution to digital payments.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com