Earlier today, Lolli, a Bitcoin rewards start-up announced that they have raised $2.25 million in their seed round. The start-up gained investment from the top-notch players across the globe.
This included Bain Capital, a private investment firm based in Boston, Version One, Digital Currency Group, Forerunner Ventures, 3K VC, Quaker Health Ventures, SV Angel, FJ Labs, and Rugged Ventures. More so, the company stated that they gained investment from the “some incredible strategic angels.”
With the investment raised in their seed round, the start-up will be making further improvements on their product, add more merchants, increase the strength their team and increase the adoption of Lolli.
The reward application enables users to gain free Bitcoin when they shop online. This includes various industries such as lifestyle, trade, food, and fashion. Lolli has partnered with over 500 online retail merchants. The company which works towards making Bitcoin more accessible has successfully added Hilton, Marriott, GoDaddy, Priceline, Booking.com, Walgreens, VRBO, and CVS to their partnership list.
The CEO and Founder of Lolli, Alex Adelman, in an interview with The Block said:
People haven’t really thought about the consumer. People want to earn bitcoin more than they want to spend it. You can attract young, affluent users who are tech-savvy if you offer them bitcoin”
Adelman further added:
“We are working with international retailers. Bitcoin is inherently international”
According to The Block, Angela Tran Kingyens, a partner at Version one said:
“Lolli makes it incredibly simple for people to earn bitcoin when they shop online. All a user has to do is sign up for Lolli and shop at one of 750+ top online stores, and they will automatically get bitcoin deposited to their Lolli wallet. The simplicity of the product and mass appeal of shopping will lead to broader adoption of bitcoin.”
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Iran: Cryptocurrency miners on the brink of supply shock; power cut warning sounded
Cryptocurrency mining could soon be phased out of another Asian giant, Iran. An official from Tavanir, the Iranian state-run company responsible for the supply and distribution of power within the country, has sounded a warning for crypto-miners.
According to an Iranian news outlet, Iran Front Page [IFP], Tavanir’s Mostafa Rajabi Mashhadi, on June 23 said that in the month of May, the country’s energy consumption shot up by 7 percent, stating that the ‘main cause’ for the same was Bitcoin miners’ excessive energy costs.
Using the national grid for the mining of cryptocurrencies is “illegal,” and if these culprits continue to use the grid to mine Bitcoin and other digital assets, their “power will be cut off,” he added.
Mashhadi added that the commensurate amount of electricity consumed by a “Bitcoin mining machine” was equivalent to the energy consumption of 24 dwellings. He said that the Iranian administration had yet not confirmed the tariff on digital currency mining power consumption.
Electricity is one of the few utilities within the country that is subsidized. This is one of the reasons why activities like Bitcoin mining consumes so much electricity, mining being a highly energy-intensive activity. Additionally, this rise is concentrated in residential areas, rather than industrial hotbeds.
Interestingly, earlier this month, Iran’s Financial Tribune had quoted the Deputy Energy Minister of Iran, Homayoun Haeri, who stated that digital currency miners should be presented with electricity bills based on “real prices” of consumption. Haeri had added that power exports should be kept in mind when these consumption costs are calculated.
Finally, the report highlighted that Tehran pays $1 billion annually to circumvent the pay gap between real electricity costs versus the actual amount charged to customers.
Given the extensive computation and hence, energy costs of cryptocurrency mining, several countries are clamping down on domestic mining industries. China, home to the largest mining pools in the world, tabled a proposal to ban all forms of cryptocurrency mining citing extensive energy consumption.
The National Development and Reform Commission [NDRC] had announced plans of banning mining of all forms of digital assets, reinstating its long-held view of converting to a clean energy-producing country. This, coupled with the government’s ongoing crackdown of the domestic cryptocurrency industry, is seen by some as serving the best of both worlds.
However, with the decline of Chinese miners and the crackdown on Iranian ones, other countries might emerge as alternatives. Mati Greenspan, Senior Market Analyst at eToro opined that these “alternatives” could be Russia or Canada.
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