Bitcoin Exchange Bitflyer Secures US$1.6 Million.
Bitflyer, the bitcoin exchange developed to replace the hole left behind by Mt.Gox, has recently announce a successful seed funding round of US$1.6 million. The new Japan-based Bitcoin exhange has some ambitious goals, with its main objective to capture the market position formerly occupied by the now defunct Mt.Gox exhange, previously the largest bitcoin exchange to exist.
Initially founded during 2010, as of 2013 Mt.Gox was handling a total of 70 percent of all bitcoin transaction. During December 2013, Bitcoin soared up to a record number of $1,151. Three month afterwards, Bitcoins worth became half of it, when over $480 million were stolen from Tokyo-based Mt Gox, bankrupting it and resulting in its shutdown, with liquidation beginning during April 2014.
The founder of this new venture, Yuzo Kano, is a former derivatives and convertible bonds trader with Goldman Sachs. He resigned from his position with Goldman Sachs back during December 2013. His interest in Bitflyer came to happen due to the the benefits he perceives in Bitcoin markets, as well as an interest in how complex system functions.
The advantages to using Bitflyer seem to be from its Kano intention to operate as a counterparty for buyers and sellers, explaining that it will allow Bitflyer to streamline how transaction are finalized and eleminate complexity from price-setting mechanisms. This is also fashioned to make it much more easier for consumer to purchase bitcoin, but also increase the risks that BitFlyer tackles. With views of the collapse of Mt.Gox as “one less competitor”, Kano feels that the fall of the former Bitcoing exchange has “left many Japanese with a very negative impression of Bitcoin”
Bitflyer is not alone on this capitalization on the growth of the Japanese market, Earlier during July, China-based Bitcoin ATM manufacturer, BitOcean teamed up with New York-based exchange technology provider Atlas ATS, with plans to launch an exchange that targets Asia. The two firm jointly bid for the assets of Mt.Gox, with plans to start a bitcoin platform in Japan by August.