MobileCoin Raises $66 Million in Series B Funding

MobileCoin Secures $66 Million in Series B Funding

MobileCoin, a cryptocurrency venture with Moxie Marlinspike – the creator of the Signal encrypted messaging application – as a key early technical advisor, has successfully completed a $66 million Series B funding round. A diverse group of investors participated, including Alameda Research, Berggruen Holdings, BlockTower Capital, Coinbase Ventures, TIME Ventures (led by Marc Benioff), and Vy Capital. Existing investors, General Catalyst and Future Ventures, also contributed to this financing.

Funding Details and Company Valuation

This entirely equity-based round elevates the total funding for the San Francisco-based company to $107 million. This figure incorporates a prior $30 million investment spearheaded by Binance Labs in 2018. According to founder and CEO Joshua Goldbard, the latest funding round establishes the company’s valuation at $1.066 billion.

Focus on Privacy-Protecting Payments

As previously reported, MobileCoin is dedicated to facilitating privacy-focused payments through rapid transactions conducted directly on mobile devices. Notably, the Signal platform integrated MobileCoin as a payment option last month, initially available to users in the United Kingdom. This integration allows for enhanced privacy when making purchases.

Synergy with Signal

Marlinspike explained to Wired that MobileCoin, being a privacy coin designed to safeguard user identities and transaction details on the blockchain, is a natural complement to Signal’s privacy-centric approach. He articulated a vision where the secure communication experience offered by Signal extends to financial transactions within the platform.

Expanding User Base

MobileCoin is also utilized by users of Mixin Messenger, a China-based, open-source private messenger built on the Signal Protocol. This allows individuals to send cryptocurrencies directly to their phone contacts.

Trading and Exchange Availability

The MobileCoin digital currency began trading in December on the FTX cryptocurrency exchange, founded by Sam Bankman-Fried, who also leads Alameda Research. Currently, the cryptocurrency can also be bought and sold on Bitfinex, BigOne, and HotBit – exchanges operating outside of the United States.

Potential for U.S. Exchange Listings

Goldbard indicated that there are no inherent obstacles preventing U.S. exchanges from listing the coin. However, listing decisions are at the discretion of each exchange. He acknowledged that the timing of such listings is unpredictable and emphasized the company’s relative newness as its primary current challenge.

Coin Ownership by Management and Advisors

Regarding potential sales of company coins by management, Goldbard confirmed that management has not sold any coins. When questioned about Marlinspike’s holdings, he stated he could not comment on his personal transactions. Marlinspike previously informed Wired that he and Signal did not own any MobileCoins at that time. Further inquiries to Signal regarding Marlinspike’s current or past ownership of MobileCoins or shares in MobileCoin remain unanswered.

Security Considerations

While MobileCoin aims to enhance security, it is not entirely immune to risks. Potential vulnerabilities include losing access to cryptocurrency if a phone is left unlocked or if the phone’s radio or operating system (like iOS) is compromised.

Environmental Benefits

MobileCoin offers an environmental advantage over cryptocurrencies like Bitcoin, which rely on “proof of work” and consume substantial amounts of electricity. Goldbard highlights this as a key differentiator.

Federated Byzantine Agreement

Instead of “proof of work,” MobileCoin employs a “federated byzantine agreement.” This mechanism involves validators – individuals responsible for storing data, processing transactions, and adding blocks to the blockchain – establishing trust relationships with each other. Consensus is achieved when sufficient overlapping circles of trust are identified. This approach requires fewer resources and less energy while maintaining decentralization.

Company Growth and Recent Events

MobileCoin currently employs 40 individuals and is actively expanding its team. The company recently experienced a tragic loss with the unexpected passing of its head of engineering, Toby Segaran, formerly of Google and Reddit. Simultaneously, David Ackerman joined the company last month as its first head of compliance.