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Contxto – Latin America continues to warm up to cryptocurrencies. Earlier this year Mexican Bitso expanded to Argentina, Peruvian Banexcoin plans its launch into Mexico, Venezuela, and Argentina.
More recently, crypto-startup Xcapit closed an investment for US$450,000 with angel investors and an unnamed fund from Canada.
The Argentine startup will use the equity capital for tech development as well as to scale throughout the region.
Xcapit closes in on crypto-enthusiasm
Fintech Xcapit among the lucky startups that have benefitted from the Covid-19 pandemic.
“This year we’re growing at a rate of 40 percent per month in customers and funds,” says José Trajtenberg, co-Founder and CEO at Xcapit. It reportedly has US$750,000 in assets under management.
The startup attributes its recent growth to the financial circumstances in Argentina including rising inflation rates and a budding interest in other currencies, including cryptos.
Xcapit’s algorithm “Brainy,” observes cryptocurrency markets and then invests accordingly. Thus automating the decision-making process.
Meanwhile, the startup only charges a commission when the user makes an earning, rather than for every transaction the bot handles.
It’s worth noting that users don’t deposit their funds directly into an account owned by Xcapit. Rather its products work as APIs that connect to Binance, one of the largest cryptocurrency exchanges in the world.
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Argentina and the cryptocurrency craze
Inflation is pushing some Argentines into embracing dollars… or cryptos.
Rightly so, as users lose purchasing power, Bitcoin, Ethereum, and friends all of a sudden become uber attractive. And this behavior is manifested not only among the crypto-enthusiasts who’ve always been keen on digital assets.
Investors are also diversifying their portfolios to invest not only in bonds and stock but partaking in cryptos as well.
This is something that Xcapit also noted with its user base.
While the Argentine government continues to waver as to its official position regarding digital assets, the general population is becoming more and more engrossed with cryptos.
Related articles: Tech and startups from Argentina!
-ML
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