Hedgy, a Bitcoin company that hopes to tackle the cryptocurrency’s volatility issues, has emerged from Adam Draper’s Boost accelerator with $1.2 million in hand.
In addition to the funding, the company also announced that its block-chain enabled contracts are now available.
Hedgy is collaborating with Bitcoin mining outfit MegaBigPower to allow miners to sign smart contracts that hedge mining payments for a predetermined date and price. Hedgy serves as a trusted third-party that helps to suss out the appropriate price using a weighted pricing index called the TradeBlock XBX.
Because of the increasing cost of mining, some miners are wary of continuing operations. What Hedgy serves to do is give miners certainty that the price of Bitcoin won’t drop so rapidly that they actually lose money on mining.
Adam’s father and longtime Bitcoin enthusiast Tim Draper led this round of investment, while Marc Benioff, Sand Hill Angels, and others contributed. The elder Draper is very keen on cryptocurrency and on building out a fintech scene on the west coast; he recently launched an incubator called Fintech Connection that resides at Hero City in San Mateo, California.