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Rare Bits raises money to target Cryptocurrency enthusiasts

Rare Bits, which is a startup firm, has set itself an ambitious target for the growth of cryptocurrency market. The company wants to be identified as a site for beginners or enthusiasts of the digital currency. In a nutshell, it wants to be ‘the go-to site’ for those looking at the virtual currencies for either buying or selling the digital coins. The startup also concluded $6 million fund-raising exercise of a dollar series A round.

Platform Launched

Investors who have invested in the startups included Spark Capital, Twitch CEO, Emmett Shear, and founder and former CEO, Justin Kan, and First Round Capital, CNBC reported. Rare Bits has launched its platform in February last enabling its users to either buy or sell any digital assets denominated in cryptocurrency. Users can search for different virtual assets on the platform. The company claims that it will be much like eBay in respect of the blockchain set. Interestingly, it came on the back of CryptoKitties success, which was a game in which users buy and sell digital kittens through contracts based in ethereum.

In short, the company will perform the task of a matchmaker for buyers and sellers and still make money through a cut of a developer’s revenue in case the specific individual establishes a viable market. During the first of its operation, the startup firm indicated that it processed over $100,000 in transactions. Despite this, the company is focused on crypto-based products than wallets of any cryptocurrency exchange.

That meant that the company is not selling any actual digital currencies and much like buying an item from eBay site where users could surf over half a million digital items’ catalog. It will also provide current offers and seek to know which one to be purchased. The co-founder of the startup, Amit Mahajan, established the firm with two alumni of Zynga that grounded them in managing big virtual economies. Currently, the focus is on consumers who are familiar with cryptocurrencies and comfortable in using them.

In an interview to CNBC, Mahajan said that it could be a daunting task for newcomers as the cryptocurrencies market is growing and the number of people experimenting the sector is also increasing. He said that he has nothing to do with Ethereum. He pointed out that he was not aware of anything and that he has never thought about buying ethereum.

Expanding To Other Services

Mahajan said that “In the final version of our product, we may not even mention the fact that we’re using Ethereum or using the blockchain. In an ideal world, you come to the site, you buy something you want, you exchange it, trade it [or] use it, but you don’t care or even need to know that the underlying technology is crypto-based.”

Rare Bits also has plans to expand its platform to other services such as the real estate or music licensing or software. The startup firm is also working with Fan Bits helping social media influences and content producers to market memorabilia directly to fans. The company is clear that it wants to bring users who have never used crypto before and help them buy digital coins.

About the author

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Prateek Kulhari

Prateek is a business editor who writes about various topics such as technology, health and finance. At Pressly, he works along with the colourful folks that build a nation through tech startups. He is also a professional football player and video games enthusiast.