Shenzhen-based cryptocurrency data startup BitKan has raised $10 million in a Series B funding round.
Leading the round is a Chinese financing firm called Zhongyunhui Capital, with IDG Capital and bitcoin mining giant Bitmain also contributing funds, the company announced Wednesday. Bitmain is an existing investor in BitKan, having invested $1.6 million in the startup in 2016.
BitKan said it will use the new funds to expand its business and build a platform dubbed “K site” within its existing application, which is expected to go into open beta on April 20. The company is also planning to open offices in Hong Kong, Singapore and Tokyo as part of its expansion plans.
The new service is envisioned as a paid platform that shares user-generated content, with users paying to access this material with the startup’s planned KAN token.
BitKan touted the new platform as a push for higher quality content, such as investment strategies for the Chinese cryptocurrency market, as a response to an environment that the startup said is fueled by “fake ICO whitepapers and scams.”
“Free content can only attract page views, but putting up a paywall can improve content quality considerably,” CEO Yu Fang explained.
Founded in 2012, the firm originally started as a platform for over-the-counter (OTC) trading that also provided cryptocurrency price and mining data, as well as wallet services.
The funding marks the firm’s latest effort to look for new revenue following the closure of its OTC platform after the Chinese government’s clampdown on initial coin offerings and domestic trading services last year.
Miniature via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.