The cryptocurrency space’s growth terrain has continued to birth several innovations and technologies in the Blockchain space. However, most of these innovations and initiatives will not be actualized without adequate capital. Many crypto firms and affiliate services have resorted to funding and several capital platforms to get adequate funding for their business. Fortunately for Eco, a new blockchain startup offering regular commercial banks’ services by rewarding depositors with crypto, they are now the beneficiary of new funding worth $26 million led by Andreessen Horowitz.
The funding had footprints of many other names like Coinbase and Pantera
Eco, a new blockchain project which is currently attracting interest from many in the cryptocurrency space, is the new kid on the block in terms of funding. The new funding, which was led by 16z crypto, had also attracted at least 90 more investors. Apart from Andreessen Horowitz’s firm, Coinbase and Pantera were also significant contributors to the funding, as Eco’s gross total funding is now over $35 million. The backing which the Eco project has received is also worthy to note, as one of its founder- Andy Bromberg, is also a co-founder of CoinList.
Speaking to the press about the project’s ambition, Andy made it known that about 150,000 customers are currently awaiting the juicy returns pegged with the project. Andy also confirmed that the project is set to reward users who save on it with interest on daily transactions, aside from the 5% annual interest every year. Many popular commercial banks that offer the same service as Eco to fiat currency holders do not reward their customers up to 5% annually. Hence, Eco’s 5% annual yield is commendable. The harsh Economic condition of 2020 had forced many renowned banks and saving platforms to crash savings interest rates to as low as 0.5% annually, making Eco’s saving plan a masterpiece.
Eco set to rival BlockFi
While Eco’s new offering is remarkable, BlockFi’s offering is juicer than that of the new project. Despite both savings platforms’ uninsured nature, BlockFi’s 8.6% annual interest thwarts Eco’s 5% annual yield. It is also worthy to note that, while BlockFi’s rate is better, Eco is set to offer several mouth-watering juicy reward packages. If investors are also so keen to make rewards on their crypto, there are also many high-risk savings platforms on DeFi that currently offer up to 100% returns on savings. According to Andy, Eco’s revenue generation plan is centered around lending depositors funds to other blockchain companies, making interest from it.
The general belief that the project founders are business experts, an example of which includes Ryan Breslow, a co-founder of Bolt, and even Andy Bromberg, who understand the crypto business very well, is why investors trust the project to succeed. The project has also been criticized by a few analysts who believe that its reward offering is too good to be trusted and not sustainable in the world economy’s current circumstance. However, that will not deter many investors from the project, as they believe that Eco’s vision and mission statement will positively impact the fortunes of the cryptocurrency market.