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TechCrunch Founder Revealed Inside Story of Deribit‘s Latest Financing Round

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TechCrunch Founder Revealed Inside Drama Behind Deribit
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  • Recently, the founder of TechCrunch, Michael Arrington shared a series of Tweets. That portrayed the fact behind Deribit’s latest round of financing.
  • According to the founder, the Holland-based exchange Deribit is an unregulated derivatives exchange.
  • Further, he stated Deribit demanded a new round of financing to fund founders and early investors at the end of 2019.

Recently, the founder of TechCrunch, Michael Arrington shared a series of Tweets that portrayed the fact behind the latest round of financing for Deribit. However, Arrington pointing out his tweet of last week, detailed about the inside story of the leading bitcoin derivative crypto exchange Deribit.

Per Techcrunch founder, Deribit is an unregulated derivatives exchange

According to the founder, the Holland-based exchange Deribit is an unregulated derivatives exchange. However, the exchange shifted to Panama due to some legal matters. But, still operates in Holland with a great profit.

Further, he stated Deribit demanded a new round of financing. To fund founders and early investors at the end of 2019 with a valuation of $ 280 million. A Singapore-based financial advisory firm Spartan Group suggested Deribit to Arrow Capital and QCP Capital. That negotiate a warrant for about 10% of the company at that price.

Now, the new shareholders, Arrow Capital and QCP Capital planned to sell these shares at an estimate of $700 million. However, Spartan moved out as it was against its market reputation. Ultimately, the QCP capital and Three Arrows Capital decreased the valuation to $350M or $375M. Further, it sold Deribit’s equity to third parties.

As per Arrington, It is Pure Capitalism

Besides this, the new buyer now learns that he has paid a higher premium and expresses his fury. The Spartan Group responded to this issue the Group has only offered consulting services for recent strategic financing. Along with this, it has only recommended Deribit to Three Arrows Capital and QCP Capital.

Arrington finally concluded that it is pure capitalism, functional to the shareholders of an unregulated financial entity. With a serious information deficit.

Furthermore, the CEO of Three Arrows Capital, SU Zhu, notified that each person associated in the business is happy.

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