TradeHill
closedA virtual currency exchange platform specializing in bitcoin and Ripple transactions.
| Date | Investors | Amount | Round |
|---|---|---|---|
| - | investor investor | €0.0 | round |
| N/A | $400k | Seed | |
| Total Funding | 000k | ||
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TradeHill was an early entrant in the cryptocurrency market, establishing itself as one of the first Bitcoin exchanges in the United States. Founded in 2010 by Jered Kenna, a former U.S. Marine and an early adopter of Bitcoin, the platform officially launched in June 2011. Kenna's experience witnessing inefficient payment systems in South America fueled his ambition to create a more seamless platform for digital currency trading. Another founder mentioned is Ryan Singer.
At its zenith, TradeHill was the second-largest Bitcoin exchange globally, trailing only the now-infamous Mt. Gox, and handled approximately 20% of all Bitcoin trades worldwide. The San Francisco-based company provided a platform for exchanging digital currencies and fiat currencies. Its business model revolved around facilitating these trades for a user base that grew to include not just individual enthusiasts but also large investors and businesses after a later relaunch.
The company's history is marked by significant operational and regulatory challenges. In February 2012, less than a year after launch, TradeHill suspended operations due to increased regulatory scrutiny and the loss of its payment processor, which resulted in a significant financial deficit for the company. The firm had issues with its payment partner Dwolla and later with Paxum, leading to legal disputes and the need to halt trading.
Despite these setbacks, TradeHill attempted a comeback. After securing $400,000 in seed funding, the exchange relaunched in March 2013. This new iteration, called Prime, was tailored for business-to-business transactions and large institutional investors. However, this relaunch was ill-fated, coinciding with the release of new U.S. Financial Crimes Enforcement Network (FinCEN) regulations for virtual currencies, which classified the exchange as a money transmitter. Faced with persistent banking and regulatory issues, TradeHill suspended trading again in August 2013 and ultimately ceased operations permanently.
Keywords: Bitcoin exchange, cryptocurrency trading, Jered Kenna, digital currency, fiat currency exchange, crypto regulation, FinCEN, Dwolla, crypto history, virtual currency, TradeHill Prime, early Bitcoin startup, Bitcoin millionaire, payment processor issues, exchange shutdown