San Francisco-based cryptocurrency exchange Kraken raised over $13 million in financing using an online investment platform Bnk To The Future. 

The funding was raised by over 2263 participants and surpassed its proposed target of $10.2 million purportedly due to popular demand. The fundraising campaign by Kraken is by far one of the most successful funding rounds conducted by individual contributors on Bnk To The Future,  with over four million clients spread across nearly 200 countries. 

BF used the method of ‘illiquid investments’ and created a Special Purpose Vehicle for Kraken to receive equity indirectly from more than 2200 investors. This technique allowed Kraken to bypass the SEC requirements under the 1934 Securities and Exchange Act.

Starting with almost 300 investors, Kraken raised over $6 million in the first day of the campaign. Kraken has compound annual growth rate of 387% because of its description as the only regulated spot and futures cryptocurrency exchange with over $85 billion in trading volume in 2018.

“Kraken is already leading in terms of delivery of must-have trader services and tools, and our product road-map is packed with new features aimed at growing our revenues and increasing market share,” a company representative stated.

Kraken is recently making continuous progress in the area of security and spreading globally. In March 2019, the exchange announced two-factor authentication (2FA), mandatory for all its exchange users. This step is part of the broader set of changes taking place in the exchange.

Earlier this year the Kraken acquired U.K’s futures provider ‘Crypto Facilities’ which led to a significantly heightened interest in its products and services in the market. Crypto Facilities which is fully regulated by the U.K.’s Financial Conduct Authority provides Kraken a stronger grip in the European market. The company supports trading in 24 crypto assets and 74 trading pairs. According to CoinMarketCap, Kraken is currently the 33rd-largest crypto exchange going by trading volume. Furthermore, Kraken earns margin of up to 5% on transactions and up to 50% on Futures trading. 

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