Israeli cryptocurrency purchase application ZenGo, which operates in 180 markets worldwide including France, announces a $ 20 million Series A fundraiser.
At the same time, the service said it had acquired 100,000 new customers in the first quarter of 2021 in addition to the 100,000 accounts for 2020, the first fiscal year.
Like Coinbase and Binance, which are its main competitors, the app offers the purchase of cryptocurrencies like Bitcoin, Ethereum, Binance Coin, Tezos, Terra and 45 other digital tokens.
With its new fundraiser, ZenGo is preparing to launch a first payment card for its additional services. Working with Visa, customers can pay for their purchases through their cryptocurrency wallet. However, at the time of the transaction there is a conversion into fiat currency.
Another security system
At ZenGo, the commissions are a little higher with each operation, but the application stands out for its security. Instead of having a private crypto key, the clients’ wallets are based on MPC (Multi-Party Computation).
Two calculations are generated, also known as “secrets”. One on the smartphone used by the client, the other on the ZenGo server. They work independently but, according to CEO Ouriel Ohayon, allow security to be strengthened.
Hence, it would not be possible to hack your account. To secure identification, biometric recognition (facial recognition) is the only technique used to confirm that you are the owner of the account.
Due to the presence of a key on our smartphone, ZenGo claims that it cannot access its customers’ wallets. “The keyless wallet technology, which is based on multi-party calculations, replaces traditional single point of failure security with distributed secret releases and facial biometrics,” the application said in a statement.
19 seconds to create an account
ZenGo works with a third party provider, MoonPay, to process transactions. To open an account, the steps can be shortened by the simpler identification technology. On their website, the app says it only takes 19 seconds to register.
In contrast to a neobank like Revolut, which also offers the purchase of cryptocurrencies, ZenGo customers own their bitcoins and other digital tokens and hold the keys. You can exchange them, send them to other wallets, or even receive them.
In addition to Visa, ZenGo has also partnered with Compound, a decentralized blockchain-based protocol. You can lend cryptocurrency to borrowers and earn interest on their assets. A new technique for generating income from DeFi (decentralized financing), better known as “agriculture”.