ShapeShift has acquired Bitfract, a Texas-based startup that developed a tool for exchanging cryptocurrencies more efficiently. According to the company, their tool allows the investors to exchange bitcoin for “dozens of digital assets in a single transaction” using the company’s API. The purpose of the tool is to make it easier for the crypto-investors to switch up their portfolio without having to go through multiple transactions to do that.
So how does this tool work?
All the investors would have to do, is choose what percentage of their holdings do they want to be in a particular asset. After that, they add the destination wallet address and send bitcoin in a single mass transaction.
This is very similar to how you can automate transactions in a bank after you receive your salary in your account. You can decide what percentage of your salary you want to go in the savings account, your Roth IRA, 401(k), and your checking account. And that’s basically it.
CEO Erik Voorhees was very amused by the technology. He said:
“This demonstrated a great alignment of strategy and thinking, and their execution was so exceptional that we wanted to bring their talented team and technology on board.”
Right now ShapeShift only intends to continue operating Bitfract’s tool in the present form, which is to be used as a demonstration of the power of ShapeShift’s open API. However, at a later date, the exchange is planning to integrate the tool into their platform and create a native “multiple output transactions” function.
I do hope that other exchanges also adopt this tool, or at least create a version of their own because this would really help out the investors who are serious about their crypto investments but have to go through a lot of transactions just so they can diversify their portfolio and not be a victim of the having all bags in one bag effect.
ShapeShift, however, has definitely been on a roll. In March 2017, the exchange raised $10.4 million in Series A funding round, and less than a year after that funding round, the exchange announced their acquisition of KeepKey, a bitcoin hardware wallet startup. And now they have also acquired Bitfract.