Coinbase Ventures, Digital Currency Group Invest In Analytics Startup Flipside Crypto
Cryptocurrency analytics startup Flipside Crypto has raised $4.5 million in its extended seed funding round co-led by Coinbase Ventures and Digital Currency Group. The round also saw participation from previous shareholders True Ventures, Boston Seed Capital and Castle Island Ventures.
Founded in 2017, Flipside Crypto is a firm that utilizes blockchain transaction data, developer activity and trading signals to characterize cryptocurrencies. Flipside Crypto’s data produces the Flipside Crypto Asset Score (FCAS), a single, consistently comparable value for measuring cryptocurrency project health. FCAS is developed through a series of proprietary algorithms and data science models measuring project utility and developer activity for crypto projects, with supporting trading signals and market risk data.
Flipside Crypto CEO Dave Balter claims that they offer a fresh approach to valuing individual cryptocurrencies that, at present, mostly trade on public sentiment and industry-specific news.
“The cryptocurrency market is maturing and institutional and retail investors are becoming more sophisticated, seeking information beyond market cap and pricing data to understand cryptocurrency projects,” said Balter. “FCAS provides a simple, easy-to-understand way to go 100x deeper than before.”
Balter said that the new capital will help the company further its mission to characterize cryptocurrencies, as well as provide the ability to take higher risks at a faster pace.
“We’ll be accelerating the distribution and availability of FCAS, Balter said. “Keep an eye out for FCAS appearing in a number of outlets shortly.”
Travis Scher, VP Investments, Digital Currency Grou, said that they invested in Flipside Crypto because they believe there will be significant demand for products and services that can help investors and entrepreneurs understand crypto data.
“”Crypto exchanges and blockchain networks generate massive amounts of raw data, and the volume of such data will explode in the coming years as the technology sees broader adoption,” Scher said. “Flipside Crypto is leading the charge with some of the most sophisticated and interesting data tools in the market. We’re excited to support them, and expect big things from Dave and his team.”
Emilie Choi, VP Corporate and Business Development of Coinbase, said that they support companies that they believe can bring them closer to their mission of creating an open financial system for the world.
“We think that Flipside Crypto and its unique approach to tracking utility and developer activity for cryptocurrencies will have a significant and beneficial impact on the industry as a whole,,” Choi said. “We couldn’t be more thrilled to be a partner for Flipside and its leadership team in its next phase of growth.”