Coin Metrics Blockchain Data Project Closes $1.9 Million Seed Round with Fidelity Investments
The Blockchain analytics startup Coin Metrics and Fidelity Investments closed a $1.9 million seed round. Other companies included are Highland Capital Partners and Dragonfly Capital. The information was announced today and was reported by CoinDesk.
The co-founder of Coin Metrics Nic Carter explained that investors are not satisfied with the current crop of price aggregation services that are currently available in the market. He went on saying that one of the things they want to do is to build whitelists of exchanges for the market reference rates to be based on credible exchanges.
There are several platforms in the space that have been accused of inflating their trading volumes. This is known as wash trading and it allows exchanges to attract several investors to their platforms.
Coin Metrics is a company that gathers information regarding blockchain data with a methodology that aims at providing traders with reliable information. This is achieved by dismissing the noise that can be created in the space.
Tim Rice, the CEO of Coin Metrics, explained that they will also be offering market data as well.
On the matter, Rice commented:
“We’ll be offering not only network data but also market data and indexes as well. We have approximately 15,000 IP addresses coming onto our site on a weekly basis, and we believe we can convert 20 percent of those into paying customers.”
The co-founder of Dragonfly Capital, Alex Pack, explained that they want to see more mature metrics in the cryptocurrency industry. Pack mentioned during a conversation with CoinDesk that there are several competitors but Coin Metrics has been around for several years.
Fidelity is also working on a platform to allow institutional investors to enter the cryptocurrency market. There are several companies that are requesting blockchain analytics and that cannot find the information that they are looking for.
Coin metrics started as a hobby project in 2017 and it offers several software tools for interested users and they have more than 12,500 followers on Twitter.