Earlier this week, ministers from the world's top economies, the G7, called for greater speed as financial watchdogs introduce comprehensive crypto regulation. This comes shortly after Terra's demise saw several crypto users suffer considerable losses in the space of a week. G7 Contacts FSB to Hurry Things Up The stablecoin failed to maintain its dollar peg and crashed as low as $0.07, with sister token LUNA not far behind. This created a ripple effect as general market anxiety destabilized even…
MyCointainer, a cryptocurrency staking platform, recently raised more than $6 million in a Seed A funding round. The Polish startup will use these funds to help develop and expand its yield earning platform to Asian, European, and Middle Eastern countries.
What Is MyCointainer?
MyCointainer’s funding round includes top names within the crypto industry, including Maple Block, Shima Capital, and ByBit exchange. Each of these organizations has a history investing in some of the most successful names in crypto, including 1Inch, Algorand, Polkadot, Circle, Polygon, and many others.
Bartosz Pozniak launched the company in 2018, after working on product teams for Barclays and Deutsche Bank in London. Though it initially grew through self-funding and revenue generation, MyCointainer recently partnered with Elrond, Polygon (MATIC), and other top 50 cryptocurrencies. It now boasts a team of 30 employees – most of which onboarded in the past 6 months.
MyCointainer allows users to stake their digital assets and easily earn yield, dubbing itself a “digital piggy bank.” Also, they can use it to purchase over 100 different cryptocurrencies and tokens, including Solana, Cardano, and Polygon.
The platform uses delegated proof-of-stake to generate exceptionally high yields on various assets. This consensus mechanism – popular with many new cryptos, including Cardano – stake users’ tokens to generate a blockchain’s new blocks. Stakers that create valid blocks receive rewards with more of the network’s native crypto, presenting a lucrative earning opportunity for savers.
Presently, average earnings for MyCointainer users are at 14.98% APY. This includes 11.9% earnings with Polygon and 43.8% earnings with Cartesi. Currently, over 8000 holders are staking each of these cryptos on the platform. Across MyCointainer’s history, it has generated over $3 million in rewards for its users.
The Growing Proof-of-Stake Standard
MyCointainer cannot generate yield on its user’s Bitcoin holdings because Bitcoin uses a proof-of-work consensus mechanism. Users can only spend energy – rather than existing Bitcoin – to earn more BTC within the network.
Due to environmental concerns, proof-of-work is becoming less favored among burgeoning cryptocurrency startups. For instance, Cardano has regularly marketed its POS mechanism as making it an eco-friendly Bitcoin alternative.
Proof of stake is also highly popular because it allows HODLers to earn more crypto without cost or effort. Given these reasons, two popular POW chains – Ethereum and Dogecoin – already plan a POS transition.