Data analytics startup Flipside Crypto, already backed by Coinbase Ventures and Digital Currency Group, has raised one other funding spherical to solidify its service choices.
Galaxy Digital, headed by hedge fund veteran (and runway model) Mike Novogratz, led a recent $7.1 million spherical in Flipside Crypto this summer time. Previous traders, akin to Castle Island Ventures, additionally participated.
In complete, Flipside has raised greater than $11.6 million because it was based in 2019. CEO Dave Balter informed CoinDesk the startup is now valued at $32.1 million. He plans to develop from roughly 14 staff to 21 by the start of 2020.
“We have sophisticated tools to determine behavioral segmentation on top of [blockchain data], to understand specific stakeholder activity,” Balter stated. “The ultimate framing of the service is trying to identify activities and, justifiably, what they do to the price of the asset.”
Although Balter stated 75 organizations have signed as much as obtain the free Flipside Analytics suite, just a few dozen customers like Algorand are paying clients to date. For these clients, understanding particular metrics – akin to who’s staking tokens on a community and the way their voter conduct compares to different networks – may help information enterprise selections.
Algorand COO Sean Ford informed CoinDesk real-time insights assist his startup “stay ahead.”
“We work with several other data service providers, but none like Flipside,” Ford stated. “The biggest difference with Flipside for us has been the ability to customize your approach to data and analysis of results.”
Whether it’s taking a look at voting patterns, developer exercise or customers’ buying and selling habits, Flipside’s Balter stated many tasks are particularly on the lookout for actions that correlate with elevated token costs. This isn’t distinctive to Flipside Crypto purchasers. One unaffiliated market maker informed CoinDesk many potential clients additionally prioritize worth positive factors because the main metric of success.
Castle Island co-founder Nic Carter, who additionally co-founded the separate analytics agency Coin Metrics, informed CoinDesk:
“The interesting thing about crypto is that these networks/crypto assets trade in real time, so naturally you have price feedback for any new fundamental developments. That’s both a bug and a feature. Startups aren’t repriced whenever they sign a new client, so that growth isn’t as evident. But in crypto assets, it’s manifested in real time, so the price conversation tends to dominate.”
Price insights
According to Flipside Crypto’s evaluation of 520 cryptocurrencies, it seems the notion of a community or asset’s future potential has a stronger affect in the marketplace than its precise utilization.
Balter highlighted one “abnormal” sample in comparison with non-crypto startups and belongings: a rising buyer base doesn’t instantly affect worth.
“You can’t associate those two things [real users and price] just yet,” Balter stated, including that he expects this to shift because the market matures. “Related to insights, in a single case Flipside recognized a difficulty with a token supplier’s public sale program. In this case, the consumer realized, they’d be higher off driving no one [to the product] than only a handful of individuals.”
However, Avon Ventures accomplice and Flipside Crypto investor Sachin Patodia stated in a press release that analytics are essential to guiding long-term progress as tasks “mature” into “mainstream businesses.” As such, some traders see fairness in analytics corporations as bets that complement different crypto investments.
The main blockchain analytics corporations (not together with these specializing in legislation enforcement and compliance) usually share overlapping traders. For instance, Balter is personally an investor in Coin Metrics, the identical means Carter’s agency invested in Balter’s startup.
Both males stated they don’t view these analytics startups as direct opponents as a result of Flipside is doubling down on serving blockchain tasks themselves, whereas Coin Metrics is targeted on traders evaluating these networks and belongings.
“If you can get detailed insight into how some protocol tweak alters the economics of a network, that is very valuable for the people designing these things,” Carter stated, including:
“We think there will be a multiplicity of blockchain analytics firms that succeed, because the blockchain industry is so data-rich, as these things are natively transparent.”
Team picture by way of Flipside Crypto
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