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

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....


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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....

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 Bitcoin Trading Platform Launches Early Access

A new start-up based in Palo Alto, California is hoping to make a splash in bitcoin trading. They're Buttercoin, and this venture capitalist-backed service has just launched early access to their platform. The soft launch of Buttercoin comes just hours following Mt. Gox's filing for bankruptcy protection, signaling that better things are on the horizon for traders. Buttercoin has reportedly received on the order of $1 million from investors, among which include Kevin Rose of Google Ventures (also, co-founder of Digg) - who teased the early access program today on Twitter. As of this....

Buttercoin Announces Permanent Shutdown on April 10th

Buttercoin, an American start-up that provides digital currency exchange services, has announced that it will be closing its operations on April 10, 2015. According to the company, it is shutting down due to a lack of interest in Bitcoin among venture capital firms. Interestingly, the reason cited has surprised many Bitcoin observers, as lately there has been a lot of seed funding by venture capitalists in several Bitcoin startups. Just four months ago, Buttercoin was backed by Y Combinator and Google Ventures and was quite optimistic about the services it announced over the /r/BitcoinMarkets:

Buttercoin Bids to Take US Business From Global Bitcoin Exchanges

Buttercoin officially launched today, bringing what it calls a "reliable, domestic bitcoin marketplace" to the US, one it believes provides the first advanced foundational service to the ecosystem's largest, and perhaps most complex market. Boasting Centralway Ventures, Google Ventures, Reddit co-founder Alexis Ohanian, Rothenberg Ventures and Y Combinator among its investors, Buttercoin claims to allow US bitcoin businesses to sell bitcoins and receive payout in just one business day. At launch, Buttercoin also lists impressive names from the US bitcoin ecosystem as clients, including....

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At first, I only saw the negative headlines about Bitcoin and thought it was some sort of unserious speculation bubble. Then I read up on it and understood that it has the potential to change the world. And when I realized I could order pizza and pay in Bitcoin, then I was all for it!

Mathias Sundin, Deputy mayor of Norrköping in Eastern Sweden, a member of Swedish Parliament