Estonian cryptocurrency exchange Coinmetro said today that it raised 7 million euros, or about $7 million, in a strategic funding round that valued the startup at $180 million.
Founded in 2018, Coinmetro operates a full-service crypto exchange with an intuitive user interface with a license to operate in the European Union and also the United States, Canada and Australia. The company plans to use the funding to expand its operations in the U.S., United Kingdom and Europe.
This funding is part of a forerunner to a Series A round that the company said is planned to take place at the beginning of 2023. It came from three angel investors and more than 100 existing stakeholders. To date, Coinmetro has raised a total of $18 million to date.
“After a peculiar year for cryptocurrencies, as indeed for most currencies, we are expecting further volatility ahead, but there is growth to be had for those that understand the market dynamics and can see where the next phase of crypto’s evolution will come from,” said Coinmetro Chief Executive Kevin Murcko.
As a cryptocurrency exchange startup, Coinmetro is building new features into a depressed crypto market dubbed “crypto winter” by industry analysts. Cryptocurrency markets, especially bitcoin, the largest currency by market cap, fell more than 65% from its all-time high in Nov. 2021 of $69,000 to about $20,000. The same crash happened to the rest of the crypto market broadly with Ethereum, Litecoin, Polygon and other cryptocurrencies, which saw similar drops.
“We have no shortage of ideas and are looking forward to making them real for our growing community over the months and years to come,” added Murcko. “This latest funding round gives us the financial clout to do just that. It’s a testament to our vision that we have succeeded in doing so during a bear market.”
According to the company, its attention to customer-first features and an intuitive interface has driven a 300% growth rate in the U.S. since its seed funding round last year, though it didn’t provide further specifics.
As Coinmetro works to grow into Europe and the U.S., it will compete with large exchanges in the same regions such as eToro, Coinbase, Crypto.com and Binance, which is the largest exchange by trading volume.
Aside from expanding operations, Coinmetro intends to use the funds to add new services such as passive-income products to help customers combat high inflation and interest rates. This will be in addition to the exchange’s current offerings of normal exchange operations such as low fees, margin trading and copying the trades of professional traders.