Bittrex Leads $1.5 Million Funding for Crypto Exchange VALR

Global cryptocurrency exchange Bittrex led the $1.5 million seed funding round for the South African crypto trading platform VALR, as per a February 28 Coindesk report.

According to Coindesk, the trading platform will list as many as 50 digital coins and is scheduled to start its operation on March 1.

So far, cryptocurrency exchanges could not make a proper impact on the African markets and Bittrex CEO Bill Shihara believes that the South African market has “tremendous untapped potential.”

Speaking to Coindesk, Farzam Ehsani, co-founder and CEO of VALR, said: “Companies are not allowed to go and buy [large amounts of] crypto from offshore markets. This makes it very difficult for crypto exchanges in South Africa to access Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term from international markets. [South Africans] want their hands on a store of value that doesn’t depreciate the way the rand has.”

Ehsani also said that 1,500 users, dominated by South Africans, already registered in the wait list of the exchange and also started to activate accounts in a closed beta.

Bittrex will also be involved in the South African exchange’s operations as it will supply the new platform with global liquidity and competitive prices for crypto-to-crypto trading. Ehsani also revealed that the exchange is working to add fiat-to-crypto trading support on the platform.

African Crypto Space

Unlike the rest of the world, cryptocurrency penetration in Africa is very low, mainly because of the sub-par infrastructure and unstable economy.

The lack of supply also led to a premium pricing of Bitcoin and other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term across the continent.

However, digital coins are gaining a lot of popularity among the population. According to the Global Digital Report 2019, 10.7 percent of mobile users in South Africa own cryptocurrencies.

The government of the country is also trying to regulate the sector as in January this year, a jointly published paper by several South African institutions mandated registration for the crypto exchanges operating in the country.

“The VALR team has the potential to change the cryptocurrency landscape in South Africa and globally,” Michael Jordaan, a VALR investor from Montegray Capital, told the publication.