Crypto Matrixport Company Looking For New Funding, Competitive Babel Finance Endangered By Bangkrut?

The crypto lending company Matrixport is seeking funding. (Photo; Doc. Matrixport)

JAKARTA - A crypto lending company, Matrixport Technologies is reportedly seeking new funding after the bankruptcy of the FTX crypto exchange. Matrixport is Asia's largest crypto lending company with an injection of US$100 million with a valuation of US$1.5 billion.

Until now, the company is rumored to have got half of the total amount of funding that Matrixport expects as mentioned above. Even so, the crypto lending platform is still struggling to raise the remaining 50 million US dollars from investors.

So far major investor Matrixport is still unknown amid the funding round this quarter. The company, Ros Gan as the head of the Matrixport Public Relations, confirmed the plan to raise the funds.

"Matrixport is regularly engaged with key stakeholders as part of its normal business, including investors who want to participate and enable our vision of providing digital asset financial services," Gan was quoted as saying by Coinpeaker.

The decision to raise funds that Matrixport emerged after the bankruptcy of FTX. FTX bankruptcy has had a domino effect on other related crypto industries. This condition prompted a number of crypto exchange companies to announce their crypto reserve funds to the public as Binance did some time ago via Proof-of-Reserve. This is a step to increase the transparency of trading companies to consumers.

Even so, Matrixport revealed that it was not in danger of going bankrupt. However, a number of of his clients are reported to have suffered losses through exposure to FTX-related products on the crypto lending platform.

On the other hand, the crypto lending platform claims to be overseeing crypto trading worth $5 billion per month. Matrixport claims to own a number of crypto assets worth billions under the company's management.

In Asia, Matrixport must compete with crypto lending platforms Babel Finance and Amber Group. Babel Finance itself is one of the crypto companies affected by the collapse of Terra LUNA last May. Now Babel is undergoing restructuring. Meanwhile, Amber Group has received support from the venture capital giant from Singapore, Temasek Holdings.

For additional information, Matrixport was founded by Chinese billionaire Wu Jihan, in 2019. Wu was also one of the founders of Bitcoin mining company Bitmain in 2013. He managed to turn the two companies into unicorns in as many years.

Matrixport itself managed to get funding from a number of venture capital companies including IDG Capital, Dragonfly Capital, and DST Global, as well as Tiger Global. Currently, the man born in 1986 also owns his own Bitcoin mining company, Bitdeer Technologies Holding Co.