Tangible Cryptography has announced the completion of a $600,000 seed round investment funded completely in bitcoin.
The company will use the funds to launch BitSimple, a new bitcoin sales portal that aims to set itself apart from traditional bitcoin exchanges.
Tangible Cryptography is not the first company to pull off a successful seed round in bitcoin. Last November Korean startup Coinplug did the same, raising $200,000 in the currency (alongside $200,000 in fiat).
BitSimple is described as a simple, fast and secure alternative to large bitcoin exchanges. It will allow users to buy and sell bitcoins directly from any digital wallet, which helps boost security. Traditional exchanges are centralized, and as such, are big targets for hackers and cyber criminals.
The security platform includes dedicated servers, a 100% offline wallet, paper backups, encrypted storage and smartcard secured access. In addition, there is no need to share sensitive information with strangers online, as BitSimple is a direct broker. The direct approach is also supposed to speed up the process, allowing transfers within hours rather than days.
Security concerns
Cyber attacks and security breaches have already put a number of exchanges out of business. A recent report found that nearly one half of all bitcoin exchanges were destroyed by hackers or internal theft. More often than not, users of such exchanges see their accounts wiped out overnight. With Bitsimple’s approach, this is not an issue.
Lead developer Gerald Davis pointed out that BitSimple is not a wallet and does not contain the balances of customers who choose to use it. He explained:
“Users are free to secure their virtual currency as they see fit. With BitSimple, instant liquidity is still just a transaction away.”
This essentially means that every individual users is free to choose how to store their bitcoins. In doing so, BitSimple virtually outsources risk, leaving it up to users to select secure wallets. Davis added that the long-term goal is to expand BitSimple’s presence and deliver unmatched customer service.
It is interesting to note that Bitsimple is operated by North American Cryptographics, which is a subsidiary of Tangible Cryptography, but more importantly it is a FinCEN registered service.
Disclaimer: This article should not be viewed as an endorsement of BitSimple. Please do your own research before considering investing any funds in this service.