Both Tribe Capital, as well as Fidelity have reportedly been having several conversations with Kraken as of late, according to a report provided by Bloomberg. The goal of these talks seems to be for a round of fundraising, which could potentially help the company raise its value to over $10 billion.
Kraken’s value increases as funding continue
Kraken is one of the biggest crypto exchange platforms in the United States, and its plans of raising its value to well over $10 billion have not gone unnoticed in the world of digital trading. It aims to accomplish this monumental task through the use of a fundraising round, and if it is successful, the company’s valuation could be doubled to $20 billion in the near future, although this would also largely be dependent on demand.
This should come as no surprise, though, as Kraken has previously utilized Bnk (an investment platform friendly towards cryptocurrency) to the Future and other platforms which are crypto-friendly in order to raise nearly $14 million back in 2019. They accomplished this through the help of over two thousand participants, and at the time, managed to procure a valuation of $4 billion.
However, their recent success has seen Kraken processing almost $2 billion in terms of volume since only yesterday.
The threat of legal action still looms
It is worth pointing out that the report of the recent raise had arrived less than seven days following threats levied by numerous users regarding legal action. This legal action was in reference to the violent flash crash which occurred this past Monday, during which Ethereum had set a price of $700 on the trading platform, whereas many of their rivals had their respective prices well over $1,300. This pricing catastrophe resulted in the cascading of liquidations on Kraken, much to the dismay of many. This was also when Kraken broke a new record in terms of daily volume, as they were able to host worth of well over $4 billion in spot trades in the last 24 hours. Ultimately, regardless of controversies and demands for refunds by the margin traders who were adversely affected, Kraken has nevertheless stated that no refunds will be given at this point in time.