Bitfinex invests in lightning network bitcoin exchange which is a trading platform built on top of the Lightning network that closed a pre-seed funding round according to the latest reports that we have in our bitcoin news.
LN markets, the trading platform, closed pre-seed funding round for an undisclosed sum and despite Bitfinex, Arcane Crypto and Fulgur Ventures participated. LN markets are the first BTC derivatives exchange that is built on top of the Lightning Network which raised pre-seed funding round to give the project away forward into collaboration with Bitfinex.
LN markets leverage the Lightning Network which is the scalability on top of Bitcoin, which enables low-cost transactions. LN markets minimize the need for relying on the exchanges as a custodian. The platform, therefore, avoids costly and slow on-chain transactions which is a huge concern in the digital asset space. It can potentially limit the traders’ abilities to respond to margin calls on exchanges. Bitfinex invests in the exchange because it sees it as an offering with enhanced trading experience. Paolo Ardoino, the CTO of Bitfinex said:
“This is one of our first public investments and underlines our support for the Lightning Network. When we look at a project such as LN Markets, we see a direct application of the technologies that we love. It is therefore important for us to provide funding and to participate in such an innovative venture.”
Arcane Crypto, the developers and investors of projects that are focusing on Bitcoin, and Fulgur Ventures which is also an investor in early-stage startups, have both participated in the seed round. The co-founder at LN markets said:
“We are very happy with the group of investors as they have a deep understanding of the space and can add massive value to our company. With their investment and backing we will be able to accelerate our development and offer new trading experiences to our users. Bitcoin is both a financial asset and a very powerful financial infrastructure and we intend to develop both aspects of it.”
LN markets were developed ITO which is a bitcoin-based startup that was founded in 2019 by Victor Afanssieff, Romain Rouphael, and Jean Jarry. Despite the small trade limit, set a 0.01 bitcoin per trader, the users of the LN markets platform executed more than 25,000 trades gathering $10 million in volume. CEO Of Arcane Capital Torbjorn bull Jensen said:
“Having used LN Markets since launch and been in conversations with the team for a while, I am very comfortable that this is something that can get really big. Bitcoin is ideal as a collateral asset, and by leveraging lightning payments, LN Markets position themselves at the cutting edge of the new financial system evolving around bitcoin.”
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