Hybrid Crypto Exchange Cube Secures $12 Million at $100 Million Valuation

The hybrid crypto trading platform Cube.Exchange, operating in a limited access mode, has raised $12 million in a Series A funding round, reports The Block.

According to the publication’s source, the startup’s valuation has reached $100 million.

The round was led by 6th Man Ventures. Among the investors are GSR Markets, ParaFi Digital, Susquehanna Private Equity Investments, and Everstake Capital.

The capital raising structure included shares in the form of token warrants, similar to the $9 million seed funding stage, confirmed Cube CEO Bartosz Lipinski.

He stated that the team was not actively seeking funds but responded to “significant interest” from investors in the project.

“We closed the entire round in less than a month,” Lipinski said.

Since late November, the platform has opened early access to a limited number of users. Cube positions itself as an exchange that prevents client losses in the event of collapses similar to FTX.

The exchange employs a hybrid mechanism with off-chain order matching and on-chain settlements. This allows traders to participate in trading on the platform without transferring assets to a deposit account.

Cube’s storage, based on multiparty computation and with separate non-custodial wallets, provides users with full control over their funds. They can verify the presence of assets without a third-party audit.

The exchange supports trading in Bitcoin, Ethereum, Dogecoin, and Solana. In the future, the platform will expand its offering of L1 blockchains, assured Lipinski.

Earlier in 2023, venture investments in the crypto industry amounted to $10.7 billion, a 68% decrease from the previous year ($33.3 billion).