CoinList raises a $10 million round backed by Twitter and Square CEO Jack Dorsey

CoinList raised $10 million in a new round as the token sale platform looks to launch a new crypto exchange, dubbed CoinList Trade, and wallet. Polychain Capital led the round, but the notable participant was Twitter and Square CEO Jack Dorsey. Dorsey is a prominent Bitcoin advocate, as evidenced by his dedication to its development through the Square Crypto initiative, and backed CoinList because “[c]rypto needs a trustworthy platform for launching new projects.”

Why it matters:

• Initial coin offerings (ICOs) and initial exchange offerings (IEOs) are down considerably from their respective peaks in terms of volume and funds raised. CoinList sales appear to defy this trend, as its recent token offerings like Algorand’s ($ALGO) Dutch auction in June 2019 ($60 million) and Nervos Network’s $CKB sale that closed last week (over $69 million) exceeded expectations. CoinList’s success suggests there is a lingering demand for token offerings, but investors prefer to back projects that are first vetted by a trusted third-party.
• Jack Dorsey’s investment marks his first public foray into cryptocurrency beyond Bitcoin. Dorsey’s previous comments suggest his only current interest is in Bitcoin. But CoinList’s platform supports the sales of various unproven cryptocurrencies, and CoinList Trade will rely on listing a multitude of tokens ($ETH and ALGO to start with more to come) to fuel future growth. While it is not a direct investment into an alternate coin, Dosey’s initiatives (through Cash App and Square Crypto) could change down the road if he continues to diversify his crypto-related investments.