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Cryptocurrency analytics startup Flipside Crypto has closed its extended seed funding round on November 21 in which it raised $4.5 million, CoinDesk reported.
The funding has been co-led by Coinbase Ventures and Digital Currency Group. Other investors in this venture round include Fintech data Executive, Jeff Parker, as well as previous shareholders True Ventures, Boston Seed Capital and Castle Island Ventures.
Flipside Crypto was founded last year by Dave Balter, Eric Stone and Jim Myers, who previously built Smarterer, a machine-learning skill assessment platform that was acquired in 2014 by Pluralsight. True Ventures led the initial investment in Flipside Crypto, the third company they've backed by this founding team.
The platform utilizes blockchain transaction data, developer activity and trading signals to characterize cryptocurrencies. It produces two major outputs:
- Flipside Crypto Asset Score (FCAS): A relative ranking of an individual crypto asset. It is a single, consistently comparable value for measuring cryptocurrency project health. FCAS, and associated data, is made available to retail investors and entrepreneurs via Flipside Crypto's Coin Health Library.
- Flipside Index Score (FINS): A relative ranking of a thematic group of crypto assets.
"We're thrilled to add Coinbase and Digital Currency Group to our roster of investors, as we further establish a standard for cryptocurrency evaluation and measurement," said Flipside Crypto CEO, Dave Balter.
"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. FCAS provides a simple, easy-to-understand way to go 100x deeper than before."
In an online post, Balter said:
“We’ll be accelerating the distribution and availability of FCAS, the scoring system which provides a single, consistently comparable value for measuring the health of cryptocurrency projects. Keep an eye out for FCAS appearing in a number of outlets shortly.”
CoinDesk reported that more than 100 investors have used these metrics from the platform’s closed beta.
Flipside Crypto has entered into a partnership with investment bank Canaccord Genuity in order to create detailed evaluation reports. Balter told CoinDesk that several institutions have expressed their willingness to partner with the company when the platform launches publicly early next year.
According to Balter, only the top 100 cryptocurrencies have any real traction at the moment. He stressed that analyzing blockchain activity and developer contributions can help provide a holistic viewpoint on how an asset is maturing.
“Price is an ineffective tool for understanding the value of these assets,” Balter told CoinDesk. “What you really need to pay attention to is, are customers using this product? How is that changing? And are developers actually building?”
