Zengo Acquires Minke to Broaden User Base
Crypto wallet provider Zengo has finalized the acquisition of Minke, a wallet focused on stablecoins, as part of its strategic effort to grow its user base. Ouriel Ohayon, co-founder, and CEO of Zengo revealed that discussions for the deal commenced not long ago, culminating in the acquisition. Ohayon expressed that the acquisition was a harmonious match, with Minke seeking a new home for its users.
Minke’s Background
- Established in 2021 in Australia, Minke attracted around 50,000 users at its peak.
- The integration aims to transition Minke’s users to Zengo’s platform, augmenting the current user base exceeding 1 million.
- Although users can move to other wallets due to Minke’s self-custodial nature, it’s anticipated that most will opt to shift to Zengo.
Transition and Discontinuation
- Minke users, who are largely newcomers to crypto, will be offered extensive assistance during the migration process.
- In line with the acquisition, Minke will halt its operations and its brand will be phased out.
- An issue with the Android app arose as it was delisted by Google due to privacy issues related to user migration tracking.
Zengo’s Initial Acquisition Move
While Ohayon and Reyes didn’t reveal the specifics of the acquisition terms, the transaction appears to be modest in scale. With a pre-seed funding round of $650,000 in 2022, Minke has committed to rewarding its investors following the acquisition. The entire team of five members at Minke has transitioned to OpenPeer.
Company Background
- Zengo, originating in Israel in 2018, has gained backing from prominent investors like Insight Partners, Austin Rief Ventures, and Samsung Next.
- The company had considered a fundraising of $10 million at a valuation of $100 million in the previous year, though the details weren’t publicly disclosed.
- This acquisition marks Zengo’s first, with an openness from Ohayon to pursue further opportunities for expansion through similar deals.
Hot Take: Zengo’s Direction Post-Minke Acquisition
With the acquisition of Minke, Zengo is poised to grow its user base and solidify its position in the crypto wallet industry. The integration of Minke’s users into Zengo’s platform signifies a strategic move towards expansion and customer retention. This acquisition serves as a springboard for Zengo to potentially explore more deals and partnerships within the market in the coming months.
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