The Chinese startup created one of the first digital currency wallet apps for the Ethereum (ETH)blockchain. The firm has been planning on scaling up this year to achieve a global market although 70 percent of its clientele comes from China. The ImToken app currently has around 4 million users but the firm hopes to reach the 10 million mark before the end of 2018. Half of that figure is expected to come from outside its home country.
Singapore’s critical role in the cryptocurrency market
imToken CEO Ben He stated that having the new headquarters in Singapore will allow the company to reach out and expand its services to more countries. He also revealed that they chose Singapore because the country has been welcoming to Bitcoin. The country has become a safe haven for Chinese startups in the blockchain and cryptocurrency industry especially after Beijing turned aggressive after ICOs and cryptocurrencies in 2017.
Cryptocurrency mining giantBitmainalso launched its regional headquarters in Singapore a few months ago while the Huobi cryptocurrency exchange also has its operations in Singapore. ImToken has always been eager to be on top of trends and it claims that this characteristic has allowed it to gain cryptocurrency assets worth more than $35 billion over the past 12 months. This means it is now roughly the same size as a medium-sized Chinese commercial bank.
The IDG Capital funding
ImToken has revealed its plans for Singapore just days after it announced that it managed to raise roughly $10 million through a Series A funding from IDG Capital. The latter also participated in raising $75 million for Coinbasethrough a Series C funding round and a $50 million funding round for Circle.
The new funding round for ImToken makes it the latest entry into IDG Capital’s investment portfolio. The Chinese Ethereum wallet startup plans to invest the money towards the development of new features for the ImToken wallet including the addition of support for other blockchains including that of Bitcoin (BTC) and Eos (EOS).
The raised capital will also be used to study Singapore regulations and also facilitate the launch of ImToken 2.0 in new international markets. The expansion will initially focus on the South East Asia market before expanding into other Asian markets. Ben HE also pointed out that the company has to do its due diligence especially because of the rapidly changing regulations as well as strictness from governments.ImToken also plans to double down on African countries where it has already developed a user base. It also plans to expand its services in the U.S at around the same time as its international expansion.
The number of new startups focusing on cryptocurrency wallets have also been on the rise, meaning ImToken should expect heavy competition. It is therefore important for the startup to make sure that it takes measures aimed at keeping the competition at bay and helping it to stay ahead.