Not everything is as we would expect. The Swedish Company Cryex, a specialist in building Blockchain technology for banks, is being sold off for an insignificant price.
The enterprise, started to develop Blockchain solutions for banks in order to reduce transactional costs up to 90%. Something that at the beginning created a lot of expectation in the banking industry and the Blockchain community.
One of the first investors in the company was Northzone, an enterprise investing in high risk companies. “Cryex is an exciting investment. We see that big economic and financial players, banks for example, do not dare to adopt cryptocurrencies or Bitcoin. That’s why it is important to rely on someone that would create a link between the crypto sphere and big financial actors”, commented Pär-Jörgen Pärsson, associated to Northzone.
In 2016, Cryex suffered economic problems and since then, they couldn’t recover. Now they are going to be sold for a paltry price. “The valuation is astonishingly low, according to the basis of which Breakit has taken part. It is set at $2.5 million dollars, equivalent to just over SEK (Swedish Krowns) 20 million. By comparison, Cryex investors have pumped a total of around SEK 100 million into the company.”
Cryex employees will start to be part of Safello, the buyer company. In addition to it, Lotta Eek, CEO of Cryex did not want to comment on the topic. The Breakit explains that Eek has referred all questions to Safello’s CEO, Frank Schuil.
Blockchain Technology for Banks
During the last months, we have heard comments regarding the possibility that the Bank of America and JPMorgan Chase & Co could be investing in Blockchain technology. Jamie Dimon commented on the matter saying that Bitcoin should be differentiated from Blockchain. The technology could be used to reduce transactional costs and waiting times, helping banks competing with the advantages of the cryptocurrencies.