American cryptocurrency exchange Coinbase has invested $ 6 million in a new cryptocurrency exchange in Indonesia called Pintu. The company announced on Tuesday that it has completed a series of funding rounds led by large global crypto investors. Among them are such monsters as:
– Intudo Ventures;
– Pantera Capital.
Of the smaller investors, the following stand out:
– Castle Island Ventures;
– Blockchain Ventures;
– Alameda Ventures.
Coinbase has become a leader in the cryptocurrency trading platform’s round of funding.
So, along with the stock market, cryptocurrency is also gaining momentum among retail investors in Indonesia.
What is Pintu and how is it different from other crypto exchanges?
Pintu was founded in 2020 by Jeth Soetoyo and is aimed at novice cryptocurrency users. This sets it apart from major Indonesian crypto exchanges such as Indodax and Tokocrypto, as Pintu focused on attracting primarily cryptocurrency users for the first time. The company noted that the new funding will go towards promotion and marketing, recruiting (staffing) and software development to attract more newcomers to the industry.
Licensed cryptoasset broker
Indonesia’s Commodity Futures Trading Regulatory Agency (also known as Bappepti) began regulating Bitcoins and other cryptoassets as commodities two years ago, paving the way for licensed brokers like Pintu. For example, Pintu registered by Bappebti and the Ministry of Communications and Informatics as a licensed cryptoasset broker to make it easier for novice investors to buy Bitcoin, Ethereum and other cryptocurrencies. And accordingly, today Pintu is the largest licensed cryptocurrency player in Indonesia.
The surge in investment interest during the COVID-19 pandemic, especially among millennials looking for alternatives to keeping their money in low-yielding savings accounts, has sparked interest in investment apps like Ajaib, Bibit and Pluang, which have recently raised funding.
Many novice investors also pay attention to cryptocurrencies. According to Pintu’s internal estimates, Indonesia processed $ 10 billion worth of cryptoasset transactions last year, mostly through retail investors.
The Pintu director noted that the majority of Indonesian retail traders see crypto as an alternative to traditional investment assets. And most of the investors are in the 20-35 age range, that is, they are young people. And therefore, for the most part, investing and trading is something completely new and incomprehensible.
Hence, Pintu sees it as its goal to help Indonesian citizens understand the concept of investment / trade. And at the same time, translate savings into digital and other asset classes. The company believes that this will make the people richer in the long term.
Simple and straightforward trading platform
Pintu COO Andrew Adjiputro also noted that there is a large base of underserved newbie investors who require a simple and intuitive trading platform where they work from start to finish and are also trained in the fundamentals of investing / trading beyond crypto, he believes that Pintu is just such a platform.