The 50 Most Interesting Companies In Bitcoin's History: 4/50
BitInstant
The Idea: A service that let users quickly purchase Bitcoin through cash deposits at thousands of retail locations (like CVS and Walmart), dramatically reducing the friction of acquiring BTC in the early days when exchange onboarding took weeks, and payments were often rejected.
Early Traction: Rather than waiting sometimes weeks for money to land in an overseas exchange users may not be familiar with, it allowed users to buy bitcoin with cash. Backed by the Winklevoss twins as one of the first VC investments in the industry.
Peak Stats: 30% of all BTC network transactions at peak.
Status Today: Failed. Shut down in July 2013. In January 2014, Shrem was arrested at JFK Airport and charged with money laundering related to Silk Road transactions due to improper KYC.
Why It Matters:
BitInstant was the Winklevoss twins' first Bitcoin bet and represented the earliest wave of VC interest in the space. Its collapse underscored the regulatory risks that defined the early era.