Crypto tax calculator CoinTracker valued at $1.3B following $100M raise

Cryptocurrency portfolio tracker and taxation calculator CoinTracker has attained “unicorn” presumption aft raising $100 cardinal successful Series A financing, demonstrating erstwhile again that investors are allocating immense sums of superior toward crypto-focused companies. 

The Series A concern circular was led by California-based task superior steadfast Accel, with further information from General Catalyst, Initialized Capital, Y Combinator Continuity, 776 Ventures, Coinbase Ventures, Intuit Ventures and Kraken Ventures. Individual investors who participated successful the circular included erstwhile Stripe COO Hughes Johnson, Coinbase committee subordinate Gokul Rajaram and Jeremy Liew, an aboriginal capitalist successful Affirm and Snapchat.

With the superior raise, CoinTracker’s full valuation grew to $1.3 billion, making it the latest unicorn to beryllium crowned successful the crypto industry. In the startup world, unicorns are companies that person attained a valuation of astatine slightest $1 billion.

CoinTracker said it volition usage the funds to conscionable the increasing request for analyzable taxation reporting tools wrong the crypto industry. It volition besides grow its quality resources and broaden its sum of exchanges, chains and wallets. The institution says it has implicit 500,000 users and tracks implicit $20 cardinal worthy of crypto assets crossed 25 blockchains and implicit 300 exchanges. Its idiosyncratic number has grown fivefold since April 2020 erstwhile it first amassed 100,000 users.

The caller US infrastructure measure has been signed by President Biden. The measure imposed restrictions connected businesses handling cryptocurrencies and mandated integer plus transactions worthy much than $10,000 shall beryllium reported to the IRS. https://t.co/gxdeK2LVJa

— Cointelegraph (@Cointelegraph) November 16, 2021

When asked astir the biggest issues crypto holders look with respect to taxation compliance, CoinTracker co-founder and CEO Jon Lerner told Cointelegraph that keeping way of transactions crossed aggregate exchanges leads to challenges calculating taxes accurately. “Complexity is exploding,” helium said, explaining: 

“Calculating that superior summation oregon nonaccomplishment tin beryllium difficult, particularly considering it could person been acquired from a assortment of places and transferred crossed exchanges and wallets implicit time. To marque matters worse, users are progressively utilizing cryptocurrency crossed much exchanges, decentralized tools, and chains, arsenic good arsenic usage cases similar store of value, DeFi, NFTs, payments, and more. Complexity is exploding.”

As Cointelegraph reported, CoinTracker’s level became disposable to users of Coinbase, 1 of the world’s starring integer plus exchanges, successful January 2021, which was close astir the clip that the Internal Revenue Service (IRS) was calling connected the speech to instrumentality a stronger presumption connected taxation evasion. CoinTracker’s level enables users to study the transaction and merchantability of thousands of cryptocurrencies successful a much accessible way.

Crypto was erstwhile again successful the crosshairs of the IRS and national regulators with the passing of the Infrastructure Investment and Jobs Act successful November 2021. The caller instrumentality is expected to make $28 cardinal successful taxation revenue from the crypto manufacture implicit the adjacent 10 years owed to changes successful however regulators classify brokers, arsenic good arsenic different reporting requirements.

Related: Crypto heavyweights backmost inflation-resistant savings protocol

Regarding task capital’s continued involvement successful the crypto abstraction amid the recent marketplace downtrend, Lerner said that “most of the apical tier exertion investors person recognized that the cryptocurrency manufacture is present to stay, fixed its tremendous imaginable and upside.” These investors don’t fto volatility interaction their concern decisions due to the fact that they absorption connected companies with beardown fundamentals.