A new kind of bitcoin trading platform is making its way to the front of the crypto line. Developed by brothers David and Ed Sapper, the platform – known as Block Bid – works as a way of allowing people to utilize crypto the way they would cash on PayPal.
Block Bid – The PayPal of Crypto?
David, the company’s co-founder and chief operating officer, stated in an interview:
It’s engrained in our heads that no matter what website we go to, no matter what we buy, if it’s a PayPal checkout bot on the website, we automatically assume that, you know, PayPal has our back. We really wanted to create that middle ground for the users where we could say, ‘We are licensed, we are regulated, we are insured,’ and provide that trading with confidence.
The company is unique in that it protects users who are victimized or who lose their funds. It is rare for cryptocurrency platforms to offer insurance like this in that thefts and malicious activity occurs so often that people are often at great risk of losing all their money.
With so many prominent examples of theft in the past (i.e. Mt. Gox, Coincheck, etc.) many insurance companies aren’t willing to provide coverage for cryptocurrency funds given their volatility and just how vulnerable exchanges and trading platforms tend to be.
However, Block Bid is registered with the government of Australia for financial transactions. Thus, underwriters stationed in the United Kingdom work to ensure that customers who incur losses always get their money back. Not only is this good for the customers, but more maneuvers like this could bring further legitimacy to the industry.
Both Ed and David felt it was important to understand every aspect of their new company. Thus, they worked hard to build the platform themselves. David states:
To build a platform that allowed us to transact faster and quicker than any other platform out there, while at the same time maintaining functionality and security, to also a backup system that we got insurance for, was paramount from day one because otherwise, we’re just another kid on the block that’s just coming out with the cool thing that’s going to get a little bit of money.
The company has raised nearly $2 million over the past two years. Block Bid garnered more than $1 million through a series funding round in late 2017 but has since garnered more through “friends and family.” Specific numbers in this department have not been disclosed.
Getting Things Off the Ground
The company later got further support through Australia’s R&D tax offset, which allowed the company transition into a product development phase and establish a legitimate accounting record system. Sapper explains:
It provides a really good backbone when you go to investors, [as] they need to see the approved R&D.