New Startup To Provide Possibility Of Making Money On PoS Algorithm
The Staked blockchain startup attracted $4.5 million of initial investment, catching the interest of industry leaders with a new trend. As the company representatives stated on the blog, it is developing a service that will allow investors to earn money on the Proof-of-Stake algorithm.
The American company Pantera Capital became the chief investor of the round. Moreover, its partner Paul Veradittakit will become a member of the board of directors at Staked. He hinted that Pantera Capital already has stakes in the new service but refused to specify in which cryptocurrencies.
The Winklevoss brothers, the Coinbase venture capital division, and several other US investment firms also showed interest in the project.
The concept of the Staked project is based on the work of the PoS protocol, in which the right to mine a block and the reward amount depends on the stake of the miner. The startup suggests investors to keep a share on blockchain — a certain amount of cryptocurrency, from which they can make a profit after the blocks are found.
So far, users can earn with the help of six cryptocurrencies, namely Tezos, Dash, EOS, Decred, and two less popular Livepeer and Factom. The project is going to spend part of $4.5 million received to expand this list — another 20 assets will become available for cold staking in 2019.
According to the Staked experts, the annual profit from a stake can reach 100%, that is, the initial capital will double. As Tim Ogilvy, the head of the project, stressed, Staked will allow institutional investors to have additional passive income in cryptocurrency.
Earlier, Polychain Capital raised $175 million to create a venture capital fund.