Over 2,000 Investors Back Kraken Crypto Exchange's $13 Million Crowdfunding

Regulated spot and futures crypto exchange Kraken has completed a $13.5 million round of financing on Bnk To The Future, an online investment platform.

One of the busiest exchanges with more than $85 billion in trade volume in 2018 - from 4 million clients spread across nearly 200 countries - Kraken envisions itself expanding into and providing additional financial services and products for the crypto industry.

BF created a Special Purpose Vehicle for Kraken to receive equity indirectly from more than 2,200 investors - in what is known as an illiquid investment.

This technique allows Kraken to bypass the SEC requirement that force it register as a public company under the 1934 Securities and Exchange Act.

These investors are therefore not shareholders of Kraken, and will only realize a return if Kraken floats its shares through an IPO, is purchased through another organization, or if the exchange undergoes a Management Buy-Out.

"CryptoWatch Premium membership, the ability to leverage shares for margin collateral, priority service from our client support team, invitation to Kraken's exclusive investor chat room, subscription to Kraken's Daily Hash newsletter and OTC Daily report, bi-annual Kraken investor update, beta access to new Kraken products and features, limited edition Kraken swag, [and] 5% investment rebate in KFEE.".

"Your $1k investment bought you about 48 future shares. If Kraken is really worth $4bn in the end you own 0,00002380808% of this pie. And that's about the sum that you invested. But as you are in the"preferred share class" you get your investment back even if Kraken sells only for $112 million.

In the investment deck, Kraken noted that it is a high growth company, with a higher compound annual growth rate than traditional firms.

Kraken earns margins of up to 5 percent on transactions, and up to 50 percent on futures trading, according to the company.

BF charges a 5 percent fee - paid up front in the share price - and can expect another 5 percent when investors cash out, a 5 percent charge on any future dividends, and a 2.5 percent fee to sell their stock on Kraken's secondary market.