Stripe is considered to the darling of the Silicon Valley. The digital payment firm ‘Stripe’ has reached the astonishing valuation of 22.5 Billion dollars soon after Tiger Global Management invested 100 Million dollars in Stripe once again.
Obviously, the investment by the Tiger Global Management proved to be giving a thirteen percent upward push to the firm’s valuation. Initially, the valuation of the firm was 20 Billion dollars. Back in 2018, the digital firm got another funding from Tiger Global of about 245 Million Dollars. As per the reports obtained from CNBC, one of the Stripe spokesperson said the following in an email-
“Stripe is rapidly scaling internationally, as well as extending our platform into issuing, global fraud prevention, and physical stores with Stripe Terminal. […]The follow-on funding gives us more leverage in these strategic areas.”
Stripe is no more supporting Bitcoin-
Yes, Stripe has ditched the functionality of the world’s largest cryptocurrency- Bitcoin BTC. Stripe removed the support for the Bitcoin back in 2018. There were two reasons behind this drastic move. First one was the slow transaction confirmation times and secondly; Stripe blames the high fees for the major dip in the number of merchants who accept Bitcoin payment.
On the other hand, back in 2014, the digital firm Stripe became the first ever major payment processor to ‘add support from Bitcoin’, as per CCN. Stripe decided to break away from the cryptocurrency in January last year when relatively the cryptocurrency was still at its all-time high. The ex-product manager of the digital firm- Tom Karlo said-
“Over the past year or two, as block size limits have been reached, Bitcoin has evolved to become better-suited to being an asset than being a means of exchange. Given the overall success that the Bitcoin community has achieved, it’s hard to quibble with the decisions that have been made along the way. (And we’re certainly happy to see any novel, ambitious project do so well.)”
Following the product manager’s comments, after a few months, the COO of Stripe- Claire Hughes Johnson said the following-
“The killer app for Bitcoin out there today is ransomware. […] I do think we’ve reached that jump the shark moment where you just say ‘da-da-da blockchain.”
Just after ditching Bitcoin, the digital firm was found to be actively participating in Stellar. In Jan 4th week 2018, Stripe said that it would look for chances to bring back the crypto payments. Tom Karlo from Stripe said the following while hinting at the firm’s interest in the lightning network, OmiseGO, and similarly other projects-
“We may add support for Stellar (to which we provided seed funding) if substantive use continues to grow.”
Looking at the Bitcoin’s turbulent performance, the firm’s decision to ditch BTC has proved to be rather very beneficial for the firm. If we were to go by the reports from CB Insights, then the digital firm- Stripe has been ranked the most valuable ‘FinTech unicorn’ internationally. Very close to the valuation numbers is another crypto exchange- Coinbase.
Last year, Coinbase managed to get 8 Billion Dollars valuation. Interestingly the funding for the Coinbase was also supported by Tiger Global Management in 2018. Coinbase holds the third rank on the international level. It has 10 Billion dollars India based startup- ‘One 97 Communication.’ The start-up has made its presence in the role of the operator of Paytm.