Flexa, a NewYork-based payments startup, just raised around $14 Million in a private token sale. The participating investors include Nima Capital, Pantera Capital, 1kx, Access Ventures, and others.
Flexacoin, the startup’s native cryptocurrency, is an ethereum-based ERC-20 token. It will allegedly be used by businesses and developers to stake value on Flexa’s network for merchant payment processing.
While Tyler Spalding, co-founder of Flexa, refused to particularize which merchants will accept BTC through this app, video tests show users buying Starbucks with it. Notably, a Starbucks spokesperson told CoinDesk, a crypto media outlet, that it is not working with Flexa.
Furthermore, Spalding highlighted that Flexa is a B2B startup. As per him, shoppers won’t need to hold or interact with Flexacoins at all. Flexa co-founder Trevor Filter mentioned the details related to such governance and participation are still under development.
Filter added that the long-term goal is to give over the network to the merchants. As per him, it is a kind of association of their own that permits them to accept cryptocurrency.
Notably, Flexa is one of more than a few companies to fundraise over the past 6 months through a private token sale without equity options. Numerai, the predictions market startup, announced similar fundraising in March.
It is to be noted that businesses, from Access Ventures to merchants, can stake Flexacoin tokens to the network. By doing so, they can earn token rewards in a model analogous to POS systems like Tezos or Cosmos. The startup also plans to launch a custodial cryptocurrency wallet app for its network, with users being able to spend cryptocurrency at POS with a type of QR code scan. Interestingly, the QR code scan is similar to Apple Pay.