Bitstamp, one of the world’s oldest crypto exchanges, is reportedly aiming to scale up its operations. This news arrives as Bitstamp moves forward with their ambitious global expansion plans. With fundraising campaigned that started back in June, the firm is utilizing Michael Novogratz’s Galaxy Digital Holdings as advisers for the process.
The raised capital is earmarked for operations such as launching derivatives trading in Europe next year, alongside expanding into several of their existing Asian markets. Plans also include scaling services in the United Kingdom. Jean-Baptiste Graftieaux, Bitstamp’s global chief executive officer, emphasized that they’re raising money not for a sale, but to expand their services to retail and institutional crypto clients.
Ripple, a major blockchain firm, acquired a minority stake in Bitstamp earlier this year. This demonstrates that Bitstamp’s efforts to scale its business align with the company’s global expansion plans aired back in 2018. Today, the exchange remains among the world’s largest, boasting around $127 million in trading volume in a recent 24-hour period.
However, caution also seems prudent. In the face of rapid growth and expansion, companies may find themselves straying from their original intentions. Bitstamp’s co-founder, Nejc Kodrič, previously asserted that they were not interested in selling or seeking investment. This raises eyebrows when juxtaposed with Kodrič’s decision to sell the majority of his Bitstamp stock, while retaining 10% and the role of CEO.
Another point meriting skepticism is the question of goodwill and trust. Bitstamp failed to respond to Cointelegraph’s request for comment in a timely manner, an aspect which might raise questions about the company’s public engagement.
Finally, the complex landscape of crypto regulation looms over the expansion. Bitstamp might have its sights on global growth, but it must navigate the intricate legalities of international markets. Whether the cryptocurrency exchange can successfully perform its ambitious expansion hangs in the balance. This uncertainty serves as a timely reminder to investors to maintain a reasonable level of skepticism, even amidst the excitement that accompanies such significant moves in the dynamic cryptocurrency space.
Source: Cointelegraph
