Coin Metrics, a cryptocurrency analytics startup that provides real-time market data and APIs, announced Wednesday that it has closed a $1.9 million seed round led by Castle Island Ventures, with participation from Fidelity Investments, Highland Capital Partners and Dragonfly Capital.
With the raise, Coin Metrics aims to expand on their advancements in blockchain analytics, which was largely self-funded with the help of community donations. Coin Metrics hopes to bring institutional-quality tools to the industry, which has suffered from a lack of trustworthy data, particularly from exchanges.
“One thing we’re looking at is building out whitelists of exchanges so that the market reference rates are actually based on credible exchanges, as opposed to exchanges that engage in wash trading and other types of nonsense,” Castle Island partner and Coin Metrics co-founder Nic Carter told CoinDesk in a recent interview.
Alex Pack of Dragonfly Capital added, “our firm works with some of the largest funds, exchanges, and traders in the cryptoasset class and we’ve seen first-hand how the lack of trustworthy data holds back the industry.”
In terms of its own analytics, Coin Metrics CEO and Thomson Reuters alum Tim Rice revealed that the site currently sees approximately 15,000 unique IP addresses on a weekly basis. Rice believes 20% of those visitors can be converted into paying customers and the site hopes to begin generating revenue in the next 60 to 90 days.
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