2 - 4 minute read
Bankruptcy claims trading platform Xclaim has announced a $7 million Series A funding round, enabling the company to broaden its crypto-focused services. CEO Matthew Sedigh stated that the funds received will be used to develop Collateralized Claim Obligations to increase liquidity and create commoditized products. Xclaim specializes in trading major bankruptcy creditor claims of FTX, Genesis, and BlockFi among many others. Single claims as large as $52 million have traded on the exchange, and the platform has listed more than $1 billion of claims, with over $200 million traded in volume. Xclaim had listed FTX claims at 13 cents on the dollar in January of this year, and currently, they are being traded at 19 cents. Andrew Glantz, Xclaim’s Chief Strategy Officer, said that the majority of interest in the platform comes from Asia-based sellers.
According to a recent report by CoinGecko, a lack of momentum has hampered Open Exchange, an online platform developed by Three Arrows Capital co-founders, Kyle Davies and Su Zhu, which also offers bankruptcy claims trading. In contrast, Xclaim’s latest move shows the potential for startups to advance in the bankruptcy claims trading sector.
Xclaim’s development signals the creation of new products such as Collateralized Claim Obligations that will significantly open up the market to many participants on the platform, according to Sedigh. The 500 registered investors on the platform, made up of individuals and firms experienced with bankruptcy claims purchasing, are expected to increase, according to the team. Sedigh believes the expansion of the product lineup and services will create space for additional traders on both sides of the market.
Xclaim’s funding announcement further illustrates the increasing significance of cryptocurrency in trading operations globally. As such, traders should consider potential cryptocurrency opportunities that could arise due to the rapidly changing market trends.
The Bottom Line
The $7 million funding announcement by bankruptcy claims trading platform Xclaim will expand the platform’s product range and create new services. Increased liquidity and commoditized products in the claims trading market are set to attract more investors, according to CEO Matthew Sedigh. Several traders currently use the platform, and the stock has traded more than $200 million in volume since its inception in 2018. These developments embody the growing interest in cryptocurrency as a financial tool and the need for traders to monitor market trends to exploit possible opportunities.