OpenNode Secures $1.25 Million In Seed Money

OpenNode is a bitcoin payments platform that allows businesses accept bitcoin payments. It raised $1.25 million from Tim Draper, an American investor.

OpenNode, a bitcoin payments platform, has just secured a seed investment round of $1.25 million.

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Seed Round of OpenNode

The round was financed by venture capitalist Tim Draper & Draper Associates. Tim Draper, an American investor and founder of Draper Associates, is known for being bullish on bitcoin. He had led a $4.2 million funding round in blockchain data network Factom and a $760,000 round in payroll startup Bitwage.

In a Medium post, OpenNode explains that the funds might accomplish to expand its team, “build our network, and ultimately, push for hyperbitcoinization.” Some portion of the investment will also go towards legal services to guarantee OpenNode’s compliance with regulations.

João Almeida, co-founder, and CTO of OpenNode say that the startup aims to be the leading Bitcoin payments platform.

OpenNode Seed Money

Growth of OpenNode

“By 2019, we plan to be the leading bitcoin payments platform. Also, more importantly, we aim to push microtransactions onto gaming/streaming/content platform and create payment models never before possible,” he said.

The growth of OpenNode has been steady and healthy. Along with the seed round, it announced a redesign of its lightning-enabled bitcoin payment processor that will offer a better experience to users. And despite the plunging prices in the market.

Almeida believes the constant development of infrastructure from protocol developers would see the company grow even further. OpenNode started in April 2018 as a payment processor that aids bitcoin payments for individuals and businesses.

It supports bitcoin protocol implementations like SegWit and the Lightning Network, thereby offering an immediate settlement of transactions with low fees. Some of the companies that have integrated into the network are SparkSwap, BTCPayServer, and CoinGate.

Blockchain Startups

Blockchain Startups

Additionally, there have been more venture funds coming into the blockchain ecosystem. Blockchain research group Diar reports earlier this year that blockchain and crypto startups raise about $3.9 billion through VC investments in the first three quarters of 2018 – that’s up 280 percent in comparison to the whole of 2017.

Also, there’s an increase in VC deals. The average size of crypto blockchain investments increases by over $1 million in 2018. This might cause by the failure of most Initial Coin Offerings. The Diar report says “the majority of tokens drops in price by more than 90 percent from their all-time highs.”

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Akeredolu Feranmi

Akeredolu is a guest author at coinpedia. He explores and writes about crypto coins, the latest updates, and more.

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