A new cryptocurrency startup has surged, already attracting $25 million from institutional capital in a ‘Seed A’ fundraising round. Tether led the round as a tier 2 investor and sided with three other venture capitalists (VCs) supporting the project.
On February 5, Oobit (OBT) did its Seed A funding round that raised $25 million, according to data from CryptoRank. It was the largest cryptocurrency fundraising in February, which drew attention to the event.
Notably, Tether appeared as the tier 2 investor for this round. Followed by tier 4 CMCC Global, tier 5 468 Capital, and the angel investor Anatoly Yanovenko. Together, they are the four Series-A investors deploying $25 million to Oobit.
What is Oobit, and how to get exposure to the crypto startup?
Smaller investors who want exposure to the startup can do that through its token OBT. The digital asset runs on Ethereum (ETH) and the BNB Chain (BNB), considered a utility token for the centralized service.
However, holding OBT gives no ownership or shareholding rights to Oobit, as would happen with a decentralized project or stocks. The token is simply an internal currency that will perform specific functions in the platform, like cashback rewards.
Interestingly, Oobit earned the attention of these institutional investors as a crypto startup focused on payments. With Oobit, people can use the top 10 cryptocurrencies for payments in places that accept Visa and Mastercard.
Users deposit these cryptocurrencies to the startup custody, allowing for frictionless ‘Tap & Pay.’ The team promises an experience similar to the Apple Pay feature by Apple Inc. (NASDAQ: AAPL).
Additionally, Oobit immediately converts the cryptocurrency to fiat in its own centralized exchange rate, delivering the merchant’s local currency to their bank account.
Paolo Ardoino, CEO of Tether, commented on the company’s investment:
“Tether’s strategic investment in Oobit underscores our unwavering dedication to welcoming new users into the cryptocurrency ecosystem. Our support is founded on a mutual vision to drive the widespread adoption of cryptocurrencies on a global scale. Oobit, in our perspective, stands as a catalyst, breaking down barriers and facilitating frictionless transactions for crypto holders worldwide.”
– Paolo Ardoino
In closing, cryptocurrency users must understand the risks of trusting the custody of their assets to a third party. Using this crypto startup service is no different than using a bank or other payment processors, although the startup nature of Oobit could bring higher risks.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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