Amber, a cryptocurrency startup founded in Hong Kong by former Morgan Stanley traders, raised $ 100 million in its latest round of funding, which saw its value grow tenfold, breaking the $ 1 billion threshold.
Thus, a group of former Morgan Stanley traders in Hong Kong turned their cryptocurrency company Amber Group into a “unicorn”. “Unicorns” are startups whose capitalization exceeded $ 1 billion in a short period.
The stage B investment round was attended by DCM Ventures, Tiger Global Management, China Renaissance Group and others. The investment round is headed by China Renaissance.
The company also received direct funding from Pantera Capital, Coinbase Ventures and Blockchain.com.
The proceeds will be used to expand operations and develop new solutions.
Amber Group what is it?
Amber Group was founded in 2018 by traders at Morgan Stanley in Hong Kong, who worked together. Michael Wu, Tiantian Kullander, Wayne Huo, Tony He and Luke Li. The sixth co-founder was the developer Thomas Zhu, who worked on the study of machine learning for trading. In 2015, when all the founders of the company were 20 years old, they launched a project on algorithmic trading in Chinese stocks and index futures. But then completely switched to cryptocurrency. After switching to cryptocurrency trading, the firm has become profitable. Its net margin is over 60%, thanks in large part to its market-neutral strategy based on volatile trading, rather than on the ups and downs of bitcoin. In the first quarter, the company earned about $ 60 million on this. And about the same in April alone, as its number of users increased.
Amber now has a team of 300 people, including from Tencent Holding and Goldman Sachs Group.
What a startup does?
Amber Group startup is one of the young companies developing financial services. From OTC trading to derivatives and structured products – for professional crypto traders and investors. The startup serves both institutional and individual investors. At the same time, the company’s register includes 500 institutional clients.
Amber trades currencies such as Bitcoin and Ethereum, attracting both client funds and equity capital. The startup manages about $ 1.5 billion in trading capital and expects its revenues to grow 10x this year.
In the third quarter of 2020, Amber Group launched a mobile application, which downloaded over 100,000 users.
The product line includes algorithmic trading, market maker services, high-frequency trading, OTC trading, borrowing and lending, and financial derivatives.
Four years after its foundation, the volume of funds under the management of a crypto-financial firm exceeded $ 1 billion, and the volume of transactions concluded – $ 500 billion. At the beginning of the year, the latter figure was half that.
One of Amber’s clients, Kyle Louis, partner at DCM ventures, is confident that “even if the cryptocurrency declines, they will stay with it for a long time”.