Bitcoin Startup Hedgy Seeks Second Life as Blockchain Firm

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4 April 2016

Hedgy is no longer in the bitcoin derivatives business, according to CEO Matt Slater.

In a new interview, Slater said that Hedgy has pivoted away from its original positioning as a bitcoin derivatives and smart contracts startup, aiming to recast itself as a blockchain applications development platform similar to Chain or Gem.

Hedgy raised $1.2m last April from a list of notable VCs including Draper Fisher Jurvetson partner Tim Draper, Salesforce CEO Marc Benioff, and Sand Hill Ventures.

At the time, the startup had sought bitcoin miners and merchants to use its tools, enabling them to lock in the price of bitcoin and shield holdings from volatility.

However, Slater said that demand for the product proved weaker than expected, and as such, the startup set its sights on new markets.

Slater told CoinDesk:

“We found that there’s a lot more interest there and a lot less interest in the bitcoin product. For us, we see bigger opportunities in building general purpose blockchain applications.”

Slater declined to name the company’s clients, but said the startup is now ‘blockchain agnostic’, offering services for bitcoin, Ethereum and the still in-development Hyperledger blockchain project.

Hedgy, Slater said, has been increasingly looking into Ethereum due to what he called the “inertia behind the platform as well as its technical advantages.

“The demand is there, at least the developer mindshare is in Ethereum,” he said.

Slater said further announcements on the future of the startup would be forthcoming.

Casual/formal image via Shutterstock