Coinchange Secures $10M Funding to Expand API Yield Service

• Digital Asset Platform Coinchange Secures $10M in Series B Funding
• Targeting Businesses with the Earn API Service
• Advantages of On-chain Asset Management
• The Risks Involved in Centralized Platforms
• Related: Genesis Files Lawsuit against Gemini over 'Preferential Transfers' amounting to $689M

Digital Asset Platform Coinchange Secures $10M in Series B Funding

Renowned digital asset platform, Coinchange has successfully raised $10 million in Series B funding to expand its API-based yield service for key cryptocurrencies including Bitcoin$42,260 -0.64% (BTC), Ether (ETH), and major stablecoins. Leading the funding round were G1.VC, Spirit Blockchain, Good News Ventures, K2.CA, and Atoia Ventures, with active participation from Mintfox, as revealed in a Wednesday email announcement.

Targeting Businesses with the Earn API Service

Located in Toronto, Coinchange is primarily aiming at companies, more specifically crypto exchanges, that desire to provide trading and yield to their customers. This is made possible through their Earn API service, which implements yield-farming strategies in decentralized finance (DeFi) markets. An API, standing for Application Programming Interface, enables one computer to request and fetch information from another.

Advantages of On-chain Asset Management

The assets of Coinchange are managed on-chain, eliminating the need for centralized intermediaries for lending or custody. This setup significantly reduces the risk of counterparty to customers, according to the company.

The Risks Involved in Centralized Platforms

The inherent risks in centralized platforms were brought into sharp focus when FTX$3.28 -5.38% collapsed in November of the previous year, causing a ripple effect to other centralized platforms exposed to the now bankrupt exchange. Over $1 billion of 232,000 users of crypto exchange Gemini's Earn service was frozen by lender Genesis, Gemini's partner in the program. Genesis declared bankruptcy in January 2023, having been owed over $226 million by FTX.

Related: Genesis Files Lawsuit against Gemini over 'Preferential Transfers' amounting to $689M

Edited by Jonathan Stoker