Source: Coinmetro
One of Europe’s fastest growing digital currency exchanges Coinmetro is today announcing the acquisition of Ignium.io, a platform that facilitates fundraising for small to medium-sized enterprises (SMEs) by leveraging social media and blockchain technology.
The value of the transaction is EUR 4 million.
Currently, 60 million small businesses are unbanked due to poor service provision from traditional finance institutions. Ignium seeks to solve the crowdfunding accessibility crisis. Ignium enables businesses to raise funds from their communities through the minting and issuance of non-fungible tokens on the blockchain. The registration process is secure, straightforward and fast, with applications taking 10 minutes on average. Coinmetro itself raised USD 2.5 million through Ignium in 2021.
The acquisition will broaden Coinmetro’s portfolio of capabilities to include services in the securities market. Coinmetro will develop the fundraising and community engagement product further to create an active market for equity trading for its more than 150 shareholders as well as external companies. This offering is the first of its kind in the crypto market, enabling participants in the crypto community to become even more engaged with the businesses they are most loyal to.
Coinmetro has acquired 71% of Ignium’s shares as of the 3rd February 2023 and the company is planning to acquire the rest of the business by the end of April 2023. Ignium’s 4,000 registered users as well as asset issuing business clients have been transferred to Coinmetro.
On the acquisition, Kevin Murcko, CEO of Coinmetro said: “SMEs are enduring one crisis after another, from Covid, to inflation to a potential recession. They are also the type of business least catered for by traditional financial services. SMEs however have a key asset: their highly engaged communities. This is particularly marked in the crypto sector. Companies that nurture their communities can then reap the benefits of turning their loyal customers into engaged investors, made possible with products such as Ignium’s blockchain technology. ”
Reimo Hammerberg, Co-founder and CEO of Ignium added: “Ignium has a long-standing relationship with Coinmetro - they are one of our first customers and their community members are active users of the Ignium product. We share an understanding of the importance of community in commercial success, which makes us confident that our clients will be in the best possible hands with Coinmetro.”