Global cryptocurrency and financial platform AscendEX recently completed a $ 50 million Series B fundraising campaign backed by some of the largest blockchain investment funds, putting the company on the right track to bridge the gap between centralized finance and the emerging DeFi world. In an exclusive interview with Cointelegraph, Shane Molidor, Head of Business Development at AscendEX, and Wes Kaplan, Director of Marketing and Platform Operations, spoke about the company’s growing value proposition beyond the cryptocurrency exchange business and highlighted the role of institutional investors in fuel. innovation in the industry.
Venture capital builds strategic partnerships
Series B from AscendEX is led by Polychain Capital and Hack VC with additional contributions from Jump Capital and Alameda Research and several other companies. Shane Molidor said that such influential names have provided “a strategic supply of capital and brain power” for AscendEX. In addition to providing funding that will be used to accelerate global time-to-market and further product innovation, the venture capital round was aimed at strengthening strategic alliances with some of the largest blockchain investors.
As Cointelegraph recently reported, venture capital firms have poured $ 17 billion into cryptocurrency and blockchain-focused startups this year alone, according to PitchDeck. Alameda Research, Polychain Capital and Jump Capital have been behind some of the biggest gains.
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Go beyond the stock exchange business
While AscendEX has taken a solid position in the cryptocurrency exchange area, with an average daily trading volume of over $ 200 million, Molidor stated that the company “has accepted non-market value propositions”, which means that it is not limited to core businesses. – company functions. the most centralized stock exchanges. The team highlighted the AscendEX Earn product, which allows users to deposit, return, borrow and raise funds for over 70 assets.
According to Molidor, the platform offers two value propositions: one for the end user who has several opportunities to earn cryptocurrency on various assets, and the other for projects that want to access the huge AscendEX user base of millions.
DeFi vs CeFi is not what it seems
Molidor also argued about the failure to treat competition between decentralized exchanges, or DEXs, and centralized exchanges as a zero-sum game. Ultimately, DEX and centralized exchanges will be seen as complementary platforms rather than bitter opponents. While DEXs are more popular with cryptocurrencies and those who are philosophical about Bitcoin (BTC) principles, experienced investment managers and high-frequency traders still prefer centralized platforms because they offer more powerful trading technologies.
Institutions “Looking behind the hood”
Cryptocurrency monitors have been talking about institutional market participation for some time now, but it was not until last year that AscendEX began to notice meaningful adoption from this group. “What the institutions are looking for is hidden under the hood,” Molidor said, referring to higher-level infrastructures such as order matching, secure custody operations and the ability to earn on various assets.
One of the tools that has become particularly popular with asset managers is the ability to buy a specific cryptocurrency and use the cryptocurrency as collateral to trade perpetual futures.
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The institutional use of cryptocurrencies is certainly on the rise. Bloomberg’s senior commodity strategist believes that cryptocurrency risk-free business leaders are left behind because traditional distribution strategies provide lower returns. In a new report released on Wednesday, Mike McGlone said that “leaders need to spot big trends before the masses” and that professional non-cryptocurrencies are likely to give in to their peers.