The crypto world is buzzing with new positive activities. On one hand, cryptos have been gaining
of late with Ethereum (ETH) up almost 40% in one week, and on the other, new deals are underway.
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The latest such deal has been struck between a crypto market participant,
Meow, and a prominent investment firm, Tiger Global. This comes amid some
negative movements, including crypto companies like Voyager and Celsius filing for bankruptcy,
and the deal might instil some new confidence in enthusiasts.
Let us explore more.
What is Meow and Tiger Global’s deal?
Meow, a firm that focuses on yields for corporate treasuries,
has released a statement about raising US$22 million in Series A. This funding round was
led by Tiger Global, with others like the FTX exchange and QED investors in participation.
In the statement, Meow has stated its objective of using the funds for
developing its stablecoin-focused product. The company’s CEO, Brandon Arvanaghi,
has talked about the potential of stablecoins, crypto tokens pegged to assets
like a fiat currency or gold, in “revolutionising” the world.
What is Meow?
Meow is a new company, founded only last year, with the primary focus
on corporate treasuries. It claims to devise “high-yield” strategies, with up to 4% yield,
for corporate treasuries. How Meow achieves the goal while also assuring the corporate treasurer
about the financial prudence and sustainability of the strategy will become clearer with time.
Meow’s founder has talked about stablecoins on multiple occasions. Stablecoins have “stable”
prices, which move with the price of the asset they are pegged to. For example,
Tether has a price of US$1, thanks to its peg with the US dollar. However, even stablecoins
can be risky, and this year’s TerraUSD crash was the biggest such blow to stablecoin enthusiasts.
Meow might focus on stablecoin in its new products,
which is also indicated in the blog released after Series A funding.
Is Meow safe?
Meow is a very new market participant. It asserts a “100% track record” and “full compliance”
with regulations in the US. Cryptocurrencies are not properly regulated in the US, which
makes it a little complex to decipher Meow’s claim.
The company also states that all funds are stored with “industry-leading” lenders and custodians.
But ever since crypto-focused companies like Celsius, which promised
high yields, have experienced liquidity concerns, investors are more cautious.
After a steep fall in prices, cryptos have rebounded of late, which can, for now, keep
negative sentiments like the “cryptos are based on greater fool theory” remark of Bill Gates at bay.
Bottom line
What is making news right now is the US$22-million funding round of Meow. By all measures,
this is not a very high-ticket deal in the crypto world where new tokens can start their journeys
easily with million-dollar market caps. Meow’s corporate treasury-focused services, however,
make it a little different than other crypto companies.
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