Home News Crypto tax calculator CoinTracker valued at $1.3B following $100M raise

Crypto tax calculator CoinTracker valued at $1.3B following $100M raise

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Portfolio and tax calculator for cryptocurrencies CoinTracker has been designated as a “unicorn” after earning $100 million in Series A funding. Proving that investors are willing to put large quantities of money into crypto-related businesses.

General Catalyst, Initialized Capital, Y Combinator Continuity, 776 Ventures, Coinbase Ventures. As well as Intuit Ventures, and Kraken Ventures were among the investors in the Series A investment round. Which was led by California-based venture capital firm Accel. Hughes Johnson, former COO of Stripe, Gokul Rajaram, a Coinbase board member, and Jeremy Liew, an early investor in Affirm and Snapchat, were among the individual investors in the round.

CoinTracker’s overall valuation increased to $1.3 billion as a result of the capital raising, making it the latest crypto unicorn. Unicorns are companies with a market capitalization of at least $1 billion in the startup industry.

Growing need for complex tax reporting solutions

The funds will be in use by CoinTracker to address the growing need for complex tax reporting solutions in the crypto business, according to the company. It will also increase its human resources and expand its exchange, chain, and wallet coverage. According to the company, it has over 500,000 users. And tracks over $20 billion in cryptocurrency assets across 25 blockchains and 300 exchanges. Since April 2020, when it first reached 100,000 members, its user base has risen fivefold.

When asked what the biggest problems are for crypto investors in terms of tax compliance, CoinTracker co-founder and CEO Jon Lerner said that keeping track of transactions across various exchanges makes it difficult to calculate taxes effectively. He explained, “Complexity is exploding”.

“Calculating that capital gain or loss can be challenging. Especially when it could have come from a variety of sources and been transferred across exchanges and wallets over time. To make matters worse, bitcoin is gradually being used across more exchanges. Decentralised tools, and chains, as well as for use cases such as store of value, DeFi, NFTs, payments, and more. The complexity of the world is increasing at a breakneck pace.”

Crypto was once again in the crosshairs of the IRS and government officials

CoinTracker’s platform made available to Coinbase users in January 2021. Just as the Internal Revenue Service (IRS) was pressuring the exchange to take a tougher stance on tax evasion. Users may easily report the purchase and sale of thousands of cryptocurrencies using CoinTracker’s platform.

With the passage of the Infrastructure Investment and Jobs Act in November 2021, crypto was once again in the crosshairs of the IRS and government officials. Due to changes in how authorities define brokers and other reporting obligations, the new law estimated to generate $28 billion in tax revenue from the cryptocurrency business over the next ten years.

Lerner claimed that “most of the top tier technology investors have understood that the cryptocurrency business is here to stay. Given its immense potential and upside,” referring to venture capital’s continued interest in the crypto area. Despite the current market downturn. Because they focus on companies with good fundamentals, these investors do not let volatility affect their investing selections.

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