• Mark Cuban and Robinhood’s CEO contribute to a $6 million funding round for the high-yield investment app Seashell

  • Seashell, a business developing a high-yielding investment software, has acquired $6 million in seed funding.

    The investment was co-led by Khosla Ventures and Kindred Ventures, with Coinbase Ventures, Solana Ventures, and the Avalanche Foundation (via its Blizzard Fund) also participating.

    Individual investors in the round included billionaire Mark Cuban, Robinhood CEO Vlad Tenev, former CFTC chairman Christopher Giancarlo, entrepreneur Elad Gil, Terraform Labs founder Do Kwon, and Polygon co-founder Sandeep Nailwal.

    Seashell has emerged from the shadows with the announcement of seed funding. Daryl Hok, the firm’s founder and CEO, told The Block that with new funding in hand, the firm expects to launch its investment app in the first half of this year. Hok was the chief operational officer of blockchain audit firm CertiK until last August and currently serves as an advisor to the company.

    Hok stated that he established Seashell to provide people with the simplest on-ramp to generating large profits, particularly when inflation is growing and bank interest rates are below 1%. Last month, consumer price inflation in the United States reached 7%, the highest level since 1982.

    Seashell claims to offer up to 10% yields. All users need to do is link their bank accounts and transfer money to the Seashell app, according to the company.

    How will Seashell achieve such high yields?

    Users’ fiat money will be transformed into stablecoins by “a licensed custodian,” according to Hok, and those stablecoins would subsequently be placed into decentralized finance (DeFi) protocols to create high yields.

    “We’re designing a multichain solution to deposit stablecoins into high yielding yet trustworthy protocols,” Hok explained. “The objective is to diversify among key blockchains among several high yielding protocols.”

    According to Hok, Seashell will also investigate off-chain lending to create high yields, which means it will lend money to market makers in the crypto world.

    While Seashell seeks to provide higher rates than bank savings, any funds deposited with the company are not insured by the Federal Deposit Insurance Corporation.

    Because commercial arrangements are still being negotiated, Hok declined to reveal whose custodian Seashell will work with to convert users’ fiat money into stablecoins. However, he stated that the partner would have the necessary permits to operate business in all 50 US states.

    According to Hok, Seashell will first operate in the United States, but it is also looking at foreign opportunities.

    Seashell presently employs more than 15 individuals, and Hok anticipates that the team size will double or triple this year. To that end, Hok stated that additional cash might be gathered as early as the first half of this year.

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