Fidelity Backs $1.9M Seed Round in Blockchain Analytics Startup Coin Metrics
Originally published on: CoinSpeaker
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February 28, 2019
As it has become known, a Cambridge-based blockchain analytics startup, Coin Metrics, has managed to close its seed funding round with $1.9 million raised. The round was led by Castle Island Ventures.
The startup also has gained support from a number of other prominent names, including Highland Capital Partners, Dragonfly Capital and Fidelity Investments that recently has expressed its deep interest to the crypto industry.
Coin Metrics has also introduced its first kit of commercial products intended for institutional clients who want to get customized research reports.
What Is Coin Metrics
Coin Metrics was established in 2017 and since that time it has been offering transparent and the most up-to-date network and cryptocurrency market data to various target groups. Financial enterprises, funds, media and research outlets are among its clients.
The main aim of the startup is to help the community better understand the specificity of digital assets, their nature and tendencies of their development which is said to facilitate their usage and ensure further adoption.
In 2017-2018 the project was fully funded via donations and managed to attract several sponsors. Nevertheless, last year the situation changed when Tim Rice, a former Thomson Reuters executive, joined the team as the company’s co-founding CEO. It was a new milestone for Coin Metrics as the startup began to pay more attention to the institutional space and start exploring its opportunities to get deeper involved in this space.
Rice commented the mission of their company the following way:
“All of our investors are bought into the idea that the next phase of cryptoasset investing requires robust comprehensive data and infrastructure. Having this premier group as investors is a great vote of confidence. We are building a world-class data company from the ground up to ensure the type of support and quality that top tier funds and asset managers expect.”
The startup is focused on the reliability of the blockchain data that it provides traders with. The information offered is not limited to exchange activity and prices, it offers a more complex overview and uses a methodology that helps to reduce the noise that can be created in the space.
The industry’s demand for trustworthy information is continuously growing, that’s why today there are a lot of players in this segment. Nevertheless, Coin Metrics can boast high popularity among the strongest institutional participants.
For example, Dragonfly Capital co-founder Alex Pack stated that they like Coin Metrics for being “crypto natives who have been around for years with a nonprofit, open source model”.
As for Fidelity Investment, at the current moment, it is actively working on launching a digital asset trading and custody service for institutional clients. It is the main factor that explains their high interest in supporting high-quality research for the industry.