Crypto startup Gemini valued at over $ 7 billion after latest fundraiser

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Representations of Ripple, bitcoin, etherum, and Litecoin virtual currencies can be seen on a PC motherboard in this illustrative image, February 14, 2018. REUTERS / Dado Ruvic

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Nov. 18 (Reuters) – Gemini announced on Thursday that it had raised $ 400 million in a fundraiser led by hedge fund Morgan Creek Digital that valued the startup at $ 7.1 billion, becoming the latest crypto company to have raised funds at a high valuation in recent months.

Led by Cameron and Tyler Winklevoss, Gemini was launched in 2015 as a platform for buying, selling, storing and earning cryptocurrencies, including bitcoin and ether, and DeFi tokens ( decentralized finance).

DeFi platforms allow users to conduct financial transactions, typically in cryptocurrencies, while bypassing traditional gatekeepers of finance such as banks and exchanges.

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The Winklevoss twins are best known for their feud with Meta Platforms (FB.O), formerly Facebook Inc, founder Mark Zuckerberg over whether he stole the idea for the social networking site from them.

The former Olympic rowers have finally settled their legal dispute, which was dramatized in the 2010 film “The Social Network”.

Gemini, which has said it will use the funds to expand its geographic footprint and expand its offerings, also operates a non-fungible token or NFT Marketplace for digital art and collectibles that has 375 unique artist collaborations.

Other investors who participated in the round include venture capitalists 10T, ParaFi, Newflow Partners, Marcy Venture Partners and the Commonwealth Bank of Australia.

Crypto companies have seen their valuations rise in recent months as their perceived value has increased with the price of bitcoin and other major cryptocurrencies.

Blockchain tech firm ConsenSys raised $ 200 million on Wednesday, at a valuation of $ 3.2 billion, from investors such as HSBC (HSBA.L) and US hedge fund Third Point.

Crypto firm FTX Trading also achieved a skyrocketing valuation of $ 25 billion after its fundraising last month.

However, bitcoin, the most popular cryptocurrency, has seen wild price swings in recent months, falling below $ 60,000 last week, after hitting a record high of $ 69,000 on November 10.

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Reporting by Manya Saini and Niket Nishant in Bangalore; Editing by Vinay Dwivedi

Our Standards: Thomson Reuters Trust Principles.

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