CoinTracker, a cryptocurrency portfolio tracking application, has raised $100 million in investment. On January 27th, the company announced this to the public for the first time. The firm’s net value has been estimated to be $1.3 billion as a result of investments made by IT tycoons and institutional investors.
Even during the downward market, crypto-related firms have gained tremendous traction. This demonstrates that investors are patient enough to wait for a bullish trend before investing in bitcoin companies.
Complex tax restrictions imposed on cryptocurrencies have made it difficult for many users to file taxes properly. As a result, CoinTracker is playing an important role in the field. It monitors investors’ portfolios and provides them with information such as taxes, real-time market value, investment performance, and transaction details.
CoinTracker indicated that the cash would be used to expand the company’s boundaries across numerous exchanges, crypto sectors, blockchains, and the expansion of people and customer support.
Accel Partners led the funding round, which included new and returning investors such as Initialized Capital, Y Combinator Accuity, General Catalyst, and Seven Seven Six.
According to June 2020 statistics, the global cryptocurrency user base has risen to 221 million people, who typically trade various digital currency wallets and exchanges. As a result, many users added complexity to portfolio management and tax reporting. CoinTracker’s co-founder and CEO, Jon Lerner, stated:
“The biggest issue crypto holders face with tax compliance is that as soon as they transact with crypto beyond a single exchange, calculating taxes accurately becomes extremely difficult.”
Lerner went on to say that tax compliance was lacking in the beginning. According to a report published by Internal Revenue Source, Coinbase had 5.9 billion users in 2015, with only 1,000 paying taxes on their investments between 2013 and 2015.
According to Sagar Sanghvi, board member of Cointracker and partner at Accel Ventures, CoinTracker is one of the finest solutions for investors who wish to stay tax compliant rather than lose thousands of dollars.
Similarly, Coinbase, one of the largest exchanges, recently teamed with CoinTracker to give its customers a tax helper to properly account for capital gains and losses.
However, the IRS is the driving force behind the collaboration, compelling US exchanges and other crypto companies to submit information.
