ShapeShift.io, a well-known currency converter in the bitcoin industry, has recently closed an investment round of US$1.6 million led by Barry Silbert’s Digital Currency Group, businesses participation included leading exchange Bitfinex, Bitcoin Capital, Mardal Investments, and top industry angels such as Bruce Fenton, Trevor Koverko, Roger Ver, and Michael Terpin.
ShapeShift has been described as a “next-generation digital currency exchange,” reporting over 100 times growth in volume since opening its doors in summer 2014. The company was able to process US$2 million worth of volume in the month of July while working to improve their API service which they’re hoping will allow other services to exchange cryptocurrency seamlessly.
Interestingly, the company founder Erik Voorhees, has a strict “no fiat” policy. The competitive advantage of such a policy is unclear, but it seems as though compliance in the legal department for not touching fiat currency would save tens of thousands in costs. Holding true to this standard, all marketing, salary, and server expenses are paid in bitcoin as well.
ShapeShift maintains user privacy as the website has “no user accounts, no signups, and no registration process whatsoever.”
“ShapeShift is how digital asset exchange should work,” reads the Shapeshift website. “From start to finish, users can convert in seconds, with no account required. No emails or passwords. No lengthy signup process. No accounts. No friction. ShapeShift's goal is to be the fastest, safest, and most convenient way to trade digital assets.”
With its focus on retaining user privacy, including opting not to comply with New York State’s BitLicense, ShapeShift remains at the forefront of the principles of their core customer demographic – frictionless, private cryptocurrency exchange. This latest funding round is a signal of confidence form investors and a reason to keep an eye on this rising star in the bitcoin industry.