Chinese cryptocurrency wallet imToken just got a big shot in the arm. The company has received $10 million in funding, all of which has come from venture capital firm IDG Capital. For imToken this investment will give it the much needed financial muscle to expand into new markets and develop new products, while for IDG it has added yet another great crypto company to its portfolio.
imToken prides itself in being the largest Ethereum wallet in the world. Currently it claims to have support for more than 30,000 tokens, more than 4 million monthly active users and $35 million in pass-through transactions last year. That is when its market is limited to China only. Now with funds raised from IDG company plans to expand in Asia and United States as well, which can make it an even more established player in the crypto space. The company said in its press release announcing the investment that it will use the funds raised to hire more technical staff and develop new products.
Company’s CEO Ben He also spoke to Coindesk over the topic and said:
“Currently company has fewer than 40 employees and will primarily expand its team in Singapore, alongside building new presences in other Asian and African countries including Japan, South Korea, Vietnam and Nigeria.”
In addition to that Ben also told Coindesk that imToken plans to launch a new security-related product by the end of June. However, he didn’t divulge any other details about that project.
Coming to IDG Capital, the firm has recently emerged as a major Venture Capital player in cryptocurrency space with investments in some of the biggest crypto startups. For example, they had participated in $75 million round of Coinbase and $50 million round of Circle. On the subject of their imToken investment IDG said in a press statement:
“imToken has developed its product into one of the top crypto asset wallets in the world with such a sound reputation. We believe it will become a significant infrastructure for the tokenization manifesto, benefitting both the crypto economy and blockchain technology. We’re excited to back imToken.”
The challenges ahead
However, despite having the financial resources it won’t be an easy job for imToken to expand in US and other major crypto markets as it will face competition from even stronger and well established players. In US it has to battle with MyEtherWallet, Ledger Nano and Coinbase. Not only all these players have far more financial resources but also they’ve a grip on market from quite long time. Perhaps that’s why imToken plans to expand in Southeast Asia first (according to info shared by company CEO with Techcrunch). However, even in Southeast Asia it will be interesting to see how successful it remains. Let’s wait and watch!