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Photo: Marcio Jose Sanchez, Associated Press

Stories behind Bay Area tech company names

Stories behind Bay Area tech company names

Facebook Originally called "The Facebook," the social network gets its name from a document with information about staff and students known as a "facebook" that was handed to freshmen at Harvard University.

Facebook Originally called "The Facebook," the social network gets its name from a document with information about staff and students known as a "facebook" that was handed to freshmen at Harvard University.

Adobe Adobe was named for the Adobe Creek in Los Altos, California, which ran behind Adobe co-founder John Warnocks home.

Adobe Adobe was named for the Adobe Creek in Los Altos, California, which ran behind Adobe co-founder John Warnocks home.

Palantir Palantir is named after the crystal ball that's used for communications and seeing into the future in J. R. R. Tolkien's "The Lord of the Rings" trilogy.

Palantir Palantir is named after the crystal ball that's used for communications and seeing into the future in J. R. R. Tolkien's "The Lord of the Rings" trilogy.

Jawbone When Jawbone was known as "Aliph," it sold a headset called "Jawbone." That Jawbone rested on the user's jawbone. Aliph eventually adopted the product's name as a company name.

Jawbone When Jawbone was known as "Aliph," it sold a headset called "Jawbone." That Jawbone rested on the user's jawbone. Aliph eventually adopted the product's name as a company name.

Startups raise cash with cryptocurrency

Its too late to invest in Airbnb but a company that bills itself as the Airbnb of cloud computer storage is raising cash and anyone with an Internet connection can get in on the action.

Storj Labs is selling digital coins at 50 cents apiece to raise $30 million in an early-stage financing round. In just five days, hundreds of contributors signed up for a piece of what they hope will be the next Silicon Valley unicorn. But theres a catch unlike traditional venture capital investments, the tokens dont confer a claim on Storjs equity or future profits.

Instead, the tokens value derives from their utility in the firms app, by providing access to data storage on a distributed network. They are the latest entry in the growing ledger of cryptocurrencies, digital coins that unlock myriad apps across the computing world. The coins can be traded on dozens of online exchanges, and demand for all sorts of them has exploded as people speculate on the next big tech startup.

The average investor is missing out on the Ubers and Airbnbs of the world, said Bart Stephens, a managing partner at Blockchain Capital, a venture capital firm that has invested in blockchain-related startups since 2012. If the next Uber decides to issue tokens, that would be an opportunity for more investors to get access to the most exciting technologies out there.

The Storj sale is known as an initial coin offering, a model of finance spreading across the tech sector. Investors spent $332 million on tokens in the past year, more than double what venture investors handed over in seed rounds, according to data compiled by coin-focused blog the Control. The haul is slated to hit $600 million in 2017, it says, adding to a market for tokens thats nearly tripled in a year.

Such offerings are possible thanks to blockchain, the catchall term for a digital ledger that promises incorruptible storage of financial transactions. Banks and stock exchanges have spent millions on it, looking for ways to cut the costs for transferring money or recording equity sales. One of the latest to back the technology was the chief executive officer of Fidelity Investments, Abigail Johnson. Most famously, its the technology that underpins bitcoin just as it does for every token offered in a coin offering.

Their huge increase in popularity has more than a few detractors warning of a bubble, worried that the allure of finding the next tech lottery ticket is fueling rampant speculation. The concern is particularly acute at a time when investors are fretting about stretched valuations for tech startups, with the likes of Uber commanding multibillion-dollar price tags even as they burn through cash.

Take Gnosis, a prediction market application based on the Ethereum blockchain that raised $12.5 million in 12 minutes on April 24, resulting in a market capitalization of almost $300 million. It generates no revenue and has little more than a white paper describing what it intends to do. Yet its tokens, which would allow users to bet on things such as election outcomes, soared eightfold in the three weeks since May 2, giving it a valuation of over $2 billion more than the average Russell 2000 Index stock.

Gnosis growth is just part of the craze thats gripped the cryptocurrency market in the last month, with the price of bitcoin gaining more than 30 percent last week, to more than $2,500. That has pushed the market capitalization of digital currencies more than 50 percent higher to more than $90 billion.

Even after that, the market is still relatively small, though its taking steps toward maturity as the boom in coin offerings spreads. There are places to track historical prices and volume, and reports on individual offerings to help prospective buyers assess a firms prospects.

The offerings happen outside the purview of regulators quite by design because technically, the coins are part of the app and not securities. Initial coin offerings dont have disclosure requirements, and the issuer can accept an unlimited number of investors, instead of the limit of 99 vetted investors in traditional venture funding rounds.

But the marketplace has also been a breeding ground for scams, and some coins have turned out to be vulnerable to attacks. Hackers were able to steal $50 million from a fund called Decentralized Autonomous Organization after it raised $150 million in the biggest offering ever in April 2016.

For entrepreneurs, the appeal is obvious. A white paper published online replaces weeks of pitches to venture capital firms, followed by an online auction that can take minutes. The technology can be poked and prodded by geeks around the world, providing a depth of expertise often missing at even the best tech firms.

You dont have to limit yourself, said Jae Kwon, who raised $16.8 million in a coin sale for Cosmos, which provides custodian-like service for transactions in different blockchains. There are just not that many VCs and theyre not experts. People who contributed to our fundraiser are the experts.

Camila Russo is a Bloomberg writer. Email: crusso15@bloomberg.net

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Startups raise cash with cryptocurrency - SFGate

For thoseoperating a bitcoin exchange where people can buy cryptocoins youd imagine that the current surge in valuefor bitcoin and others like Ethereums ether coin isadream come true. The answer is yes and no.

Coinbase, the worlds most funded bitcoin exchange, was dragged offlineby the massive increase in interest in the space. Users have reported issues with various aspects of the service this week, and things reached a head on Thursday when the Coinbase website and mobile apps were unavailable to users for hours due to unprecedentedlevels of trading and traffic, the company said.

Bitcoin crossed the $2,000 mark for the first time this past weekend, and the charge continued this week until yesterday when, after reaching a new high of $2,805 on the Coinbase exchange, the valuationfell to$2,307. The currency has since stabilized, but its current value of $2,475.23 represents a $116.41 drop over the last 24 hours.

The market cap of digital currencies has increased ~50 percent to $91 billion in the past week. As a result, Coinbase has seen a dramatic increase in traffic and trading volume, the company told TechCrunch in a statement.

The Coinbase engineering and support teams have been working round the clock to keep up with this unprecedented volume. However, Coinbase.com has suffered a few outages, including degraded performance and deposit/withdrawal delays for some users. We are actively working on resolving these issues and restoring our site to normal performance, itadded.

Things seem more stable today, with the Coinbase website and app functioning as usual. Having said that, at the time of writing, there are some minor issues with certain debit and credit cards, according to the companys own status report.

According to Crunchbase, Coinbase has raised more than $117 million from investors that includeBank Of Tokyo Mitsubishi UFJ, the New York Stock Exchange, Union Square Ventures, Draper Fisher Jurvetson andAndreessen Horowitz. Its $75 million Series C in 2015 was a record funding round for any bitcoin-focused startup.

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Even the world's largest bitcoin exchange couldn't handle this week's cryptocurrency boom - TechCrunch

Minereum, a relatively new cryptocurrency platform stands apart from its counterparts, thanks to the innovative technology which is wrapped in an easy-to-use package for wider reach.

Cryptocurrencies and their underlying blockchain technology are not limited to a closed community anymore. The endless potential of blockchain and its benefits has got many industry segments looking for ways to implement it into their operations. The increasing interest has also resulted in the creation of numerous cryptocurrency platforms that can cater to the needs of industry. But most of these solutions are very similar to each other and requires active community involvement for mining operations, which are generally processing power intensive, requiring lots of energy.

Minereum, a relatively new cryptocurrency platform stands apart from its counterparts, thanks to the innovative technology which is wrapped in an easy-to-use package for wider reach. According to the creators of Minereum, it is the first self-mining smart contract that is based on a mathematical formula which allows certain Genesis Addresses to continuously generate new tokens.

Minereum tokens (MNE) started trading recently, and in less than a month it has gained significant traction within the cryptocurrency community. Currently available for trade on Livecoin exchange platform, MNEs value is poised at $3.12 per token with a market capitalization of over $1 million. It can be traded against two major cryptocurrencies, Bitcoin and Ethereum (MNE/BTC and MNE/ETH).

In order to initiate the creation of new MNE tokens, Minereum recently introduced 4268 Genesis Addresses. These addresses were assigned 32,000 coins each, setting the total number of tokens on the platform to 136,576,000 MNE. The self-mining contract associated with the Minereum ensures that the Genesis Addresses create 0.00032 MNE for each Ethereum block generated. This way, it will take a good 47 years before the cryptocurrency reaches its maximum cap.

As the new cryptocurrency gains traction, the platform has announced its plans to implement a new service that allows the creation of ERC20-based tokens. The upcoming Ethereum Token Creation Service will allow people to create their own create Ethereum based tokens that can be used for organizing ICOs, trading or private use. In order to create new tokens over Minereums Ethereum Token Creation Service, users will have to just enter basic details like token name, symbol, etc., and in no time, they will have the tokens ready.

Through its services, Minereum is working on reducing the barrier to entry for individuals and businesses interested in using cryptocurrencies. Over time, startups and companies stand to gain a lot from Minereum.

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Minereum, Self-Mining Smart Contract Platform Gains Traction on Cryptocurrency Market - newsBTC