The venture capital firm Sequoia India led a $3 million seed round fora company called Band Protocol. This startup aims at incentivizing content producers with tokens. The information was released by the startup on Tuesday. Other investors that participated in the funding round were Dunamy & Partners and SeaX.
According to CoinDesk, Band Protocol offers a platform that allows participants to create tokenized communities that enable monetization and governance. The investment in the firm will be used to develop the product and improve the market strategy of the company.
The startup explains that they will be using a token called “band” that will work as an economic incentive. Thus, it will be possible to build a community based on reliable knowledge. The firm explained that active users and content creators will be rewarded for participating in the ecosystem. Finally, it will be possible to reduce fake content that reaches individuals around the world.
The co-founder and CEO of Band Protocol, Soravis Srinawakoon, explained:
“As blockchain developers and technology enthusiasts, we have noticed a growing unavailability of trustable data on the internet, coupled with the rising trend of fake news.”
With a blockchain-enabled platform, the company wants to generate transparent and reliable data and bring online digital communities together. There will be other applications as well for this product. It will be possible for credit bureaus and other identity verification companies to improve their services with this platform.
In the future, the startup could implement scaling solutions based on Ethereum or Tendermint.
During the last bear market that started in January 2018, companies started to receive fewer funds for developing their projects. This company is currently showing that there is genuine interest in the products that it is developing.