- In an attempt to increase the number of its users, stablecoin-focused wallet Minke was purchased by cryptocurrency wallet provider Zengo.
Ouriel Ohayon, the CEO and co-founder of Zengo said that the deal talks started less than a month ago, and the acquisition happened quickly after. “Minke was looking for a new home for their users, and it was a good match,” Ohayon stated.
In an attempt to increase the number of its users, stablecoin-focused wallet Minke was purchased by cryptocurrency wallet provider Zengo.
According to Reyes, Minke, an Australian startup launched in 2021, had roughly 50,000 customers at its height with its self-custodial wallet. As part of the agreement, Zengo plans to add more users to its existing user base of over a million and onboard Minke’s users to its own platform.
Users can move their seed phrases to any other wallet because Minke functions as a self-custodial wallet. Ohayon and Reyes, however, are hopeful that the majority of Minke users will switch to Zengo.
“Most users are using Minke as their first crypto wallet so that they will need migration assistance,” Reyes stated, adding that they will be “heavily pushed and guided to migrate to Zengo.”
As part of the agreement, Minke will stop selling both its wallet and brand. An Android app for it already has problems. According to Reyes, Google delisted it because of certain privacy controls that Minke put in place to track migrations. Minke is currently taking steps to resolve the issue. Existing users can continue to use the app in the interim.
Zengo’s initial procurement
The parameters of the deal were not disclosed by Ohayon and Reyes, although it looks to be a modest transaction. According to Reyes, Minke had only raised $650,000 in a pre-seed funding round in 2022. Investors will get the acquisition revenues, he added.
Five people made up Minke’s small team, but according to Reyes, all of them have moved to OpenPeer and won’t be joining Zengo.
Founded in Israel in 2018, Zengo has the support of notable investors such as Samsung Next, Austin Rief Ventures, and Insight Partners. According to a story by The Block last year, the company sought to raise $10 million at a valuation of $100 million. In the event that money was raised, neither the amount nor the valuation were disclosed.
Zengo’s initial acquisition is Minke, and Ohayon is open to further agreements of this kind. According to him, there are a lot of minor players, therefore in the upcoming 12 to 18 months, Zengo may be able to generate more money.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
