Investors Inject $110 Million Into Blockchain.com
Blockchain.com, a leading cryptocurrency enterprise, has made headlines with its recent accomplishment of securing $110 million in a Series E financing round. The funding was spearheaded by Kingsway, with significant participation from prominent investors such as Coinbase Ventures, Lakestar, Lightspeed Venture Partners, and Baillie Gifford. This substantial investment further solidifies Blockchain.com's position in the digital assets market.
Post-Valuation Falls Short of Expectations
While this funding round is undoubtedly a success for Blockchain.com, it is worth noting that the company's post-valuation falls significantly short of the $14 billion estimate from 2022. According to Bloomberg's Olga Kharif, a person familiar with the matter revealed that the post-valuation remains at less than half of its previous estimate. This discrepancy suggests that the company will need to focus on strategies to regain its previous market value.
A History of Strong Investor Backing
Blockchain.com has garnered support from a total of 32 investors, amounting to an impressive $600 million in total funding. Over the years, the company has made strategic acquisitions, including notable names such as Zeroblock, rtbtc.com, Aix, sesocio.com, and Altonomy. These acquisitions have allowed Blockchain.com to expand its offerings and strengthen its position in the cryptocurrency industry.
Active Investments in Crypto Projects
In addition to its acquisitions, Blockchain.com has actively invested in various crypto projects, demonstrating its commitment to the growth and development of the industry. The company has supported initiatives such as Zetachain, Arbitrum, Messari, and Gnosis, showcasing its dedication to innovation and staying at the forefront of the digital assets landscape.
Expansion into New Markets and Partnerships
Blockchain.com has been actively expanding its reach by entering new markets and forming strategic partnerships. In 2022, the company secured a payment license in Singapore, enabling it to tap into the thriving cryptocurrency market in the region. Additionally, Blockchain.com inked a multi-year partnership with the Dallas Cowboys and their star quarterback, Dak Prescott, further increasing its brand visibility and credibility.
Continued Innovation with the Introduction of XRP
This week, Blockchain.com made another significant move by introducing XRP into its digital wallet. This addition expands the range of cryptocurrencies available to users and further solidifies Blockchain.com as a comprehensive and user-friendly platform for managing digital assets.
In conclusion, Blockchain.com's successful Series E funding round is a testament to its position as a key player in the cryptocurrency industry. Despite falling short of its previous valuation, the company's strong investor backing, strategic acquisitions, active investments in crypto projects, expansion into new markets, and ongoing innovation all contribute to its continued growth and success.
Frequently Asked Questions
How Does Gold Perform as an Investment?
Supply and demand determine the gold price. Interest rates also have an impact on the price of gold.
Due to their limited supply, gold prices fluctuate. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
Can I keep a Gold ETF in a Roth IRA
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
An IRA traditional allows both employees and employers to contribute. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
An Individual Retirement Annuity (IRA) is also available. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions made to IRAs are not taxable.
Is physical gold allowed in an IRA.
Gold is money. Not just paper currency. It's an asset that people have used for thousands of years as a store of value, a way to keep wealth safe from inflation and economic uncertainty. Investors use gold today as part of their diversified portfolio, because it tends to perform better in times of financial turmoil.
Many Americans now invest in precious metals. While owning gold doesn't guarantee you'll make money investing in gold, there are several reasons why it may make sense to consider adding gold to your retirement portfolio.
One reason is that gold historically performs better than other assets during financial panics. The S&P 500 dropped 21 percent in the same time period, while gold prices rose by nearly 100 percent between August 2011-early 2013. During these turbulent market times, gold was among few assets that outperformed the stocks.
Another advantage of investing in gold is that it's one of the few assets with virtually zero counterparty risk. Your stock portfolio can fall, but you will still own your shares. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Finally, gold offers liquidity. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. You can buy gold in small amounts because it is so liquid. This allows for you to benefit from the short-term fluctuations of the gold market.
What are some of the advantages and disadvantages to a gold IRA
An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. There are some disadvantages to this investment.
For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
Another disadvantage is that you must pay fees to manage your IRA. Most banks charge 0.5% to 2.0% per annum. Other providers charge monthly management fees ranging from $10 to $50.
If you prefer to keep your money outside a bank, you'll need to purchase insurance. Most insurers require you to own a minimum amount of gold before making a claim. You might be required to buy insurance that covers losses up to $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. Some providers restrict the amount you can own in gold. Some providers allow you to choose your weight.
It's also important to decide whether or not to buy gold futures contracts. The price of physical gold is higher than that of gold futures. Futures contracts provide flexibility for purchasing gold. Futures contracts allow you to create a contract with a specified expiration date.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. However, it does cover damage caused by natural disasters. You might consider purchasing additional coverage if your area is at high risk.
You should also consider the cost of storage for your gold. Storage costs are not covered by insurance. In addition, most banks charge around $25-$40 per month for safekeeping.
You must first contact a qualified custodian before you open a gold IRA. A custodian keeps track of your investments and ensures that you comply with federal regulations. Custodians are not allowed to sell your assets. They must instead keep them for as long as you ask.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. It is also important to specify how much money you will invest each month.
After filling in the forms, please send them to the provider. After reviewing your application, the company will send you a confirmation mail.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. A financial planner can help you decide the type of IRA that is right for your needs. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
Who holds the gold in a gold IRA?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
You must have gold at least $10,000 and it must be stored for at the least five years in order to take advantage of this tax-free status.
Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going to use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
You should consult a financial planner or accountant to see what options are available to you.
Is buying gold a good way to save money for retirement?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
Physical bullion is the most popular method of investing in gold. You can also invest in gold in other ways. You should research all options thoroughly before making a decision on which option you prefer.
If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. If you need cash flow from an investment, purchasing gold stocks is a good choice.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.
Statistics
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
External Links
forbes.com
bbb.org
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
finance.yahoo.com
How To
The growing trend of gold IRAs
Investors are increasingly turning to gold IRAs as a way to diversify and protect their portfolios from inflation.
The gold IRA allows investors to purchase physical gold bars and bullion. It can be used for tax-free growth and provides an alternative investment option for those concerned about stocks and bonds.
An investor can use a gold IRA to manage their assets and not worry about market volatility. The gold IRA can be used to protect against inflation or other potential problems.
Investors also have the benefit of physical gold, which has unique properties such durability, portability and divisibility.
Additional benefits of the gold IRA include the ability to quickly pass ownership to heirs. Additionally, the IRS does not consider gold a money or a commodity.
This is why the gold IRA has become increasingly popular with investors looking to provide financial security during times of financial uncertainty.
—————————————————————————————————————————————————————————————–
By: Jamie Redman
Title: Blockchain.com Secures $110 Million in Series E Funding Round
Sourced From: news.bitcoin.com/blockchain-com-raises-110-million-in-series-e-round-led-by-kingsway/
Published Date: Thu, 16 Nov 2023 12:30:24 +0000
Leave a Reply