CoinTracker gets seed funding of $1.5 million
CoinTracker, the cryptocurrency investment managing start-up gets a seed funding of $1.5 million from some high volume investors.
The list of investors at the funding round includes Y Combinator, an early Coinbase investor, Co-founder of Reddit – Alexis Ohanian, File Coin Creator & Protocol Lab founder – Juan Benet, and creator of Gmail – Paul Buchheit.
According to Chandan Lodha, the co-founder of CoinTracker, the idea that is attracting investor towards CoinTracker amongst other folks is that they are making things easy and accessible for the people in this confusing and complicated space of cryptocurrency.
He further added that the main mission of CoinTracker is to make cryptocurrency reach more accessible and easier for the crypto enthusiasts and mass audience.
During the interview with Lodha, it was revealed that the CoinTracker is originated from the frustration and difficulty faced by Lodha and another co-founder while tracking the cryptocurrency investment. Some of the ex-Google employees were deployed to track the cryptocurrency investment by maintaining a spreadsheet manually but, that also failed to track more than 10 cryptocurrency transactions. Till this number, to maintain the transaction history is easy but beyond that, the task becomes more complex as it involves a number of different coins and exchanges.
To resolve this complex problem of tracing back, the team added Google applications scripts and API (Application Programming Interface) integration. Lodha named the solution as “heavyweight hacky solution”.
The most daunting task was to build a simpler front-end software which has been evolved as a dashboard that works as a single unified interface for all cryptocurrency assets.
To begin with the process, instead of manual entries of every crypto transaction, the CoinTracker co-founders synchronized the different wallets and exchanges that people were using, to connect them once on the dashboard. Then it would come into their history of transaction retroactively and move forward so that the users can see how their investment performance is going without doing anything.
Lodha and his co-founder of CoinTracker, Jon Lerner, have recently issued a tax feature to further simplify the process and giving a different experience to crypto users. This new tool resolves all the distinct trades and transactions they had and files the IRS form 8949. This makes the situations, hassle-free for the people.
The founder Lodha said that there is a lot of room to make things easy and simpler in the space full of confusion and complexity, in the cryptocurrency world. He further said that they will use the seed funding in order to accomplish goal even if it helps them taking little steps towards the same. First of all, they will expand their team by onboarding more number of full stack developers.
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