CoinTracker is a tool that accurately calculates cryptocurrency taxes and gains.
Recently, the crypto tax calculator raised $100 million and gained a “unicorn” status (a status that indicates a startup company that is valued at at least $1 billion).
The company of CoinTracker proved that investors are indeed awarding crypto companies with a generous amount of capital.
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Initialized Capital, General Catalyst, Kraken Ventures, Y Combinator Continuity, 776 Ventures, Coinbase Ventures, and Intuit Ventures all participated in the Series A investment round, that was initially organized by Accel, the venture capital company.
Moreover, there were individual investors that actively participated in the event, such as the Snapchat investor, Coinbase board member Gokul Rajaram, and Jeremy Liew, tripe COO Hughes Johnson and an early investor in Affirm.
CoinTracker easily achieved the most recent unicorn status, by growing the total valuation up to $1.3 billion, also a result of the capital raise. The company was very satisfied with the achievement and shared their thoughts about where they will use their funds.
To be exact, they pointed out the popular desire in the crypto world for a bit more complex tax reporting tools. CoinTracker will also widen its exploration of wallets, exchanges, and chains, keeping basic human resources in mind.
Furthermore, CoinTracker has grown significantly since 2020 when they first said:
As more users and regulators see that the vast majority of cryptocurrency use is by everyday people for completely legal transactions and people are crypto tax-compliant, this helps increase faith and legitimacy of the cryptocurrency industry as a whole.
Since then, the numbers have grown fivefold, being 500,000 users and tracking over $20 billion worth of crypto assets across 25 blockchains and over 300 exchanges.
However, individuals from the crypto world do face some issues with respect to tax obedience. According to sources, Jon Lerner, the CEO of CoinTracker, explained that the biggest challenge is to maintain accuracy when keeping track of the transactions that happen across multiple exchanges. And the complexity is getting bigger with the variety of exchanges, wallets, DeFi, NFTs, payments, etc.
Speaking of the venture capital’s interest in crypto despite the recent market dropdown, Lerner commented that:
Most of the top-tier technology investors have recognized that the cryptocurrency industry is here to stay, given its enormous potential and upside.
A company that has strong fundamentals will always have investors that don’t change their minds because of unpredictability.
Several sources report that January 2021 was the time that CoinTracker became available at one of the most dominant digital assets exchanges on the market - Coinbase. And at about the same time a tax firm issued a public release warning investors that the United States Internal Revenue Service is getting serious with Coinbase users.
Following that, CoinTracker makes the reporting of transactions and sales of cryptocurrencies much easier to access and understand.
Furthermore, the new law of IRS and federal regulators with the passing of the Infrastructure Investment and Jobs Act can produce $28 billion in tax revenue in the next ten years. It can be considered as a result of changes in the reporting requirements, and the classification of brokers.
