Cryptocurrency investment management startup CoinTracker has raised $ 1.5 million in seed funding from some heavyweight investors, the firm announced on Tuesday.
Backed by seed accelerator Y Combinator, an early investor that was founded by Reddit co-founder Alexis Ohanian.
Protocol Labs founder and FileCoin creator Juan Benet and Gmail creator Paul Buchheit also notably took part in the round.
CoinTracker co-founder Chandan Lodha told CoinDesk that the company's core premise is to "make crypto more accessible, easier to use and simpler for a mainstream audience."
"I think I can not help you," "He told CoinDesk.
Order out of chaos
In the interview, Lodha said that the company was born out of his and co-founder Jon Lerner's frustration with tracking their crypto investments. The former Google employees initially tried to use a spreadsheet to keep track of their investments.
"That works for the first 10 trades or when you have a very simple transaction history," he said, "but over time, you start doing more trades or start having more exchanges or more coins – it gets very out of control. "
The team then added API integration and Google apps scripts, which Lodha described as "really heavyweight hack-y solution".
This "pain point" prompted Lodha and Lerner to develop a front-end simpler for the product, which eventually evolved into "a simple dashboard for a unified interface of all your crypto assets."
We have been working in the past few years, but we have been able to start working at one time, we are synchronizing the different exchanges and wallets that people have. So they just connect them once, and then pull it into all of their transaction histories backactively and going forward, and then they could see how their [investment] performance was going without having to do anything. "
Most recently, CoinTracker introduced a tax feature to further simply the crypto investors' experience. IRS Form 8949, "the new tool", said: "Lodha said.
"It saves people a lot of hassle," he added.
Lodha and Lerner do not know how to stop cropping space that are currently inaccessible.
"Lodha said" We started by dealing with tracking and making it super easy, but hopefully over time we can do that to other areas as well.
Full-stack developers. The co-founders plan to use their full funding.
"There are obviously many areas of crypto that are very confusing and complicated," Lodha said. "I really do not like that."
Businessmen and coins image via Shutterstock