Bitcoin Marketplace Buttercoin Folds Despite $2.1 Million Investment

Bitcoin Marketplace Buttercoin Folds Despite $2.1 Million Investment

Comment added from Buttercoin founder and CEO Cedric Dahl. UPDATE (6th April 14:03 BST): Comment added from Garrick Hileman, an economic historian at the London School of Economics. US bitcoin marketplace Buttercoin is shutting its doors, despite launching with $2.1m in investor backing just four months ago. In a farewell post to customers today, the Buttercoin team announced the service will go offline this Friday (April 10th) at 11pm PST. Stressing that it was "100% secure and solvent", the Palo Alto-based platform blamed a lack of VC interest for its closure, stating: "With the dip in....


Related News

Wedbush Securities Funds Buttercoin in First Bitcoin Investment

Noted investment services provider and research firm Wedbush Securities has announced its first investment in the bitcoin ecosystem, contributing an undisclosed sum to newly launched US bitcoin marketplace Buttercoin. One of the more vocal research institutions on the subject of bitcoin globally, Wedbush has long been bullish on digital currency while largely refraining from issuing any direct financial support to the ecosystem. Buttercoin CEO Cedric Dahl framed the funding as proof that institutional players on Wall Street are increasingly interested in supporting the bitcoin ecosystem,....

Inside Buttercoin's Drive to Shape the US Bitcoin Marketplace

The way the community thinks about the bitcoin network is wrong, at least in the eyes of Buttercoin CEO Cedric Dahl. Maybe he won't say it exactly, but it's there, in the words he uses to describe the US-based "bitcoin marketplace" he heads, and the words he doesn't. At face value, Buttercoin's market approach may seem simple - it's a place where you can buy and sell bitcoin. But to Dahl, it's a subtle but sizable change in the way we think about financial services enabled by both bitcoin and the Internet. Take, for example, the business he most often cites in conversation, Amazon Web....

Buttercoin Promises To Launch *Very* Soon... But Where And What?

Buttercoin has just emailed everyone that signed up for their early access list! That's right, they made a PR campaign out of their launch. If you are interesting in pushing me further up the queue to get more information on Buttercoin to the masses faster, please follow this link and register for early access. Who Is Buttercoin? Buttercoin was founded by Cedric Dahl and Bennet Hoffman, formerly of CoinHarvest, back in 2013 and received roughly $1.6 million in funding from various sources including Google Ventures and Y Combinator. Dahl and Hoffman are targeting the International....

Why did the Bitcoin Startup Buttercoin Fail?

The recent developments with Buttercoin, a Bitcoin trading platform last week caught everyone by surprise. The company backed by heavyweights like Google Ventures, Y Combinator, Rothenberg Ventures etc. was forced to shut down its operations due to what they claim to be lack of funding. Bennett Hoffman and Cedric Dahl founded the Palo Alto, California based company in 2013. The company attracted a lot of attention and funding to rise through the ranks of Bitcoin based startups. Buttercoin later went on to become the first Bitcoin business to raise investment form a prominent Wall Street....

Buttercoin CEO Reveals 'Tactical Mistake' that Led to Company Closure

One week after his startup's abrupt closure, Buttercoin CEO Cedric Dahl says the wider community should be careful to learn from his experience at the helm of the US bitcoin marketplace. Despite accruing an impressive list of investors, including Google Ventures, Centralway Ventures and Y Combinator, Dahl suggested that it was Buttercoin's affiliation with larger investment firms that ultimately left it less able to adapt in a changing bitcoin ecosystem. He told CoinDesk: "The big lesson is that you cannot rely on venture. You have to make a product that is self sustaining." Founded in....