🍯 Bitcoin honey: HoneyB startup raises $5 million
Most bitcoin holders just sit on it, like a dragon guarding its gold. Startup HoneyB wants to put that gold to work.
What happened. Nectar Group, which is building the HoneyB platform, raised $5 million in a seed round and was valued at $30 million. The funding came from Portal Ventures, Peer Venture Partners, Anchorage Digital Ventures, a family office, and private angel investors.
How it works, in simple terms. You put up Bitcoin as collateral and borrow stablecoins against it, like pawning your car, only without the pawnshop and with blockchain. The platform invests that money in income-generating assets: U.S. government bonds, loans, gold, and options. The Bitcoin itself remains yours.
And how much can you earn? Let’s be realistic: the investment products themselves target around 10% annually, while users are promised about 2–4% after interest on the loan and fees are deducted. It’s more of a modest boost to your Bitcoin than a way to get rich.
Who needs this first? The first product is aimed at institutional investors outside the U.S., and the company then plans to launch for institutions in the U.S. Ordinary people probably won’t have access to HoneyB anytime soon.
Why so much money? It will go toward product development, integration with custodians and financing providers, legal compliance, and promotion. The business model is simple: a fee on the funds invested.
The main caveat. For now, HoneyB exists mostly on paper. It’s worth waiting for an actual launch date, the first figures on the amount of funds on the platform, and the actual returns for users. A startup’s promises are not results.
This is not investment advice: returns are not guaranteed, and crypto-backed loans carry risks.
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