Boston-based startup Flipside Crypto announced the closure of a round of initial funding, led by Coinbase Venture Division and investment company Digital Currency Group. This is reported by MarketWatch.
It is a great deal to make it easy to understand and make it easy to understand it’s simple, smart, and sophisticated Flipside Crypto Asset Score (FCAS). https://t.co/mKn3UGIMqF
– DigitalCurrencyGroup (@DCGco) November 29, 2018
Officially, the amount of attracted investments was not disclosed, but according to CoinDesk , Flipside Crypto received a total of $ 4.5 million. It is also reported that True Ventures and Castle Island Ventures invested in a startup.
As representatives of Flipside Crypto say, they offer a completely new approach to evaluating cryptocurrencies, the price fluctuations of which very often depend on news and moods in the community.
“The cryptocurrency market is becoming more mature and institutional, and retail investors, wanting to better understand projects, are becoming more sophisticated and are trying to find information that is not limited to capitalization and price data, ” said Dave Balter, Flipside Crypto CEO.
The proposed startup solution is called FCAS [Flipside Crypto Asset Score] – the proposed asset valuation is based on a variety of data collected from various blockchains and smart contracts and divided into three categories: utility evaluation, trading signal evaluation, and developer activity rating.
Thus, the utility assessment is determined by collecting data on network activity or smart contracts, which makes it possible to understand how active the community is. The more users involved in the project, the healthier, according to Flipside Crypto, is the cryptoactive itself.
“User activity is like a canary in a coal mine. You can look at prices all day, but not see the fundamental factors, ”says Dave Balter.
Evaluation of trading signals tracks trading patterns that can help investors understand the trends and volatility of an asset, while the assessment of developer activity reflects project work and helps determine its long-term viability.
For example, according to the Flipside Crypto methodology, Zcash has a higher FCAS than Monero:
Turns out @zcashco has a stronger FCAS (more customer activity and developer behavior) than @monero . #cryptocurrency #fundamentals pic.twitter.com/tjuK5nM9To
– Flipside Crypto (@flipsidecryptod) November 29, 2018
As representatives of Coinbase and Digital Currency Group have noted, as the market matures, analytical data is becoming an increasingly important factor.
“We think that Flipside Crypto and their unique approach to tracking the utility and activity of cryptocurrency developers will have a significant and positive impact on the industry as a whole, ” said Emily Choi, vice president for corporate and business development at Coinbase.
The vice president of investments at Digital Currency Group Travis Cher agrees with her:
“Cryptocurrency exchanges and blockchain networks generate a huge amount of raw data, and in subsequent years, amid wider adoption of technology, the volume of this data will increase dramatically, ” he said.
We add that to date, more than 100 investors have taken advantage of the start-up cryptoactive asset assessment methodology used in the closed beta testing of the platform. Flipside Crypto also entered into a partnership agreement with the investment bank Canaccord Genuity, under which it will prepare analytical reports.
The official launch of the platform is expected in early 2019, and the service itself will be available on a paid subscription cost from $ 25 to $ 300 per month depending on the type of data requested.
Recall that earlier this week, $ 12.75 million, announced in the area of security tokens, was announced by the blockchain-start-up Securitize, which closed a round of financing of Series A for $ 12.75 million. One of the investors was Coinbase Ventures.
Subscribe to the BlockchainJournal news in Telegram: BlockchainJournal Live – the entire news feed, BlockchainJournal – the most important news and polls.
BlockchainJournal.news
