Seattle company that helps teens to learn about and invest in cryptocurrency raises $2.7M

Date:

Stack is a Seattle-based start-up creating a platform to allow teenagers to make investments in, and to learn about cryptocurrency it has acquired $2.7 million to expand its production of content.

The money comes via Madrona Venture Group, The Venture Collective and Santa Clara Ventures, among other sources.

Stack was initially conceived of as an Washington-based finance incubator and closed the $550,000 seed round in the same time period from On Deck and Santa Clara Ventures in January. In March, it was awarded a the $100,000 prize from Madrona Venture Lab Web3 venture contest named Launchable.

Read more Indika AI places bets on artificial data to conquer problems with real-world data

Stack is set to launch iOS and Android applications, with the current waiting list of 5,000 users. The company hopes to distinguish its offerings from other cryptocurrency trading apps by developing an educational platform along with its investment infrastructure. This will comprise an array of content that is crypto-related designed to draw teens away from other platforms such as TikTok or YouTube.

The topic of financial education is an increasing popular topic in Gen Z users. A study revealed that by the end of September 2021″FinTok” on TikTok had more than 500 million views “FinTok” on TikTok had more than 500 million users, as did other hashtags such as “cryptocurrency” and “investing” were viewed by over 2 billion, and 3.7 billion views in the respective months.

“There was this zeitgeist and excitement behind crypto,” Stack CEO and co-founder Will Rush told Economic pitch . “People were going to hack their way into it.”

The de facto resource for crypto-related content , and having to compete for views is an uphill battle, according to Rush who was previously working in teen banking at Copper as well as a Venture Fellow at Fuse. Rush is as well as co-founder and director of the product Angela Mascarenas, who was a leader in J.P. Morgan Chase where she was responsible for teen banking and Chief Technology Officer Natalie Young, who was the founder of several companies and was an engineer in software at T-Mobile.

Stack earns its revenue through a subscription that costs $3 per month. But, users can make up the difference by watching the content available on the platform. It rewards users with crypto in exchange to watch video content, Rush said.

“Stack’s business model is thoughtfully designed around education instead of trading incentives,” Madrona wrote in blog posts. “Unlike the over-18 exchanges, Stack is monetizing with subscriptions and not on a per-trade basis. Users also receive bite-sized content delivered daily through the app. They also earn cryptocurrency as a reward to take a look.”

Madrona has been betting heavily on startups that are Web3 related. On Wednesday, the company announced that it would be among the investors that have invested $13.5 millions in Spice AI. This announcement comes at a time where the market overall has been experiencing declining interest, and a flood of negative news.

Luna is a good example. It suffered a loss of 40 billion in a flash crash in May. Novi Meta’s pilot digital wallet project, shut down in September, and the crypto-dealer Voyager Digital filed for bankruptcy in July. The rates for Bitcoin and Ethereum have dropped more than 50% in the past year.

However, Rush stated that he’s not concerned. He predicted that the market is likely to recover once regulation and centralization is implemented, and once that occurs, Stack will be well placed to profit from an upcoming bull market. He compared it to Robinhood which had its first traction following the financial crisis, and was able to reap a profit during the market’s bull run last year.

Rush claimed that his former boss, Copper, together alongside Step and GreenLight are likely to be the biggest competitions for Stack. Rush added to the news that Robinhood as well as Charles Schwab are also launching educational offerings for teens. Stack is, he added, will ultimately stand out through its sole focus on products that are crypto-related.

“Obviously it’s a unique product in a unique arena to operate in,” the CEO stated. “Ultimately, I think it’s what’s going to be our strength and what’s going to carry the day.”

Read more Cosmic Byte caters to the requirements of every Indian gamer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

ERP Modules: Types and Characteristics

Multiple options might be discovered while examining business management...

Agritech start-up Otipy is appointing Rohit Sood as its chief executive officer

Rohit Sood has been selected to be the chief...

Nykaa Q2: Profits up 333% year-over-year to the sum of Rs 5.2 crore Revenue up 39%

The second quarter in the fiscal year currently in...

Decentro is a fintech company has received $4.7M in the Series A round of capital

Funded by Y Combinator, a banking and payments API...