Coinbase and Two US Giants Invest in Hong Kong Crypto Startup

In recent years, we have seen a lot of buzz for the Crypto market in Asia. Reportedly, 80% of the total Crypto trading is done from Asia. As a result, investors are aiming to plunge into the Asian market for profit-making.

Top US Crypto investors, Pantera Capital, Polychain, Paradigm, Coinbase, and Fenbushi Capital made a piece of great news when they decided to jump to an opportunity to invest in Hong Kong Crypto trading company, Amber. Investors have made a big announcement that they would pour $28 million into Amber.

In 2015, 4 Morgan Stanley traders and 1 Bloomberg engineer decided to start an Artificial Intelligence startup to trade Chinese Stocks and securities. They name the company as Amber AI. 

In Summer 2017, they decided to divert their attention to Crypto trading when they found a huge arbitrage opportunity. Although their total profit was in single-digit million dollars, Amber made gains of 100% to 200% between October 2017 to December 2017. 

Surprisingly, in 2018, when BTC rate fell from $7800 to $3800 (Approximate figures), Amber made a huge profit of $50 million with 40% return rates. They eventually decided to stop their focus on Artificial Intelligence and removed that AI from their venture name.

Over the past few months, since Amber switched its total attention to Crypto trading, the firm has been offering services like providing loans, electronic market trading, financial management, OTC trading, etc. to all the institutional investors. 

As per one report, Amber generated revenue between $10 million to $20 million in 2019. Tiantian Kullander, the CFO of the Crypto startup, aims to double the revenue generation in 2020.

Amber with 105-employees in Hong Kong creates a lot of opportunities. Firstly, they are sitting native to the top Crypto giants namely the Binance of Singapore, Huobi of Beijing, Bitmex of Hong Kong. 

Secondly, unlike the US government, the Hong Kong government does not count Cryptocurrency as a security asset. As a result, Amber’s clients are can trade more than 700 coins on up to 30 Crypto exchanges as compared to 30 digital assets in the US.

For now, as per Kullander, the Coronavirus has created a downside in Asia. As a result, Amber’s current employees are working from home. Coordination and visiting clients have considerably reduced. 

Reportedly, this has not reduced the revenue of the startup. Kullander commented on the situation. He said,

“The beauty of Crypto trading is its 24*7 availability. You can sit at home and run your investment regime.”

Arjun Balaji, an investment partner at Paradigm, said that they were quite positive about investing in Amber. As per him, Amber has a good potential to earn good profits in the coming months. A world-class team combined with a sophisticated approach made them become a partner with the Hong Kong Crypto startup.

 

Tabassum Naiz: Tabassum is an enthusiastic author, web geek, writer & digital marketer, with experience writing for tech, digital, and cryptocurrency blogs.