CryptoQuant, the leading on-chain data platform, raised $3 million in a funding round led by Hashed, the largest crypto venture capital firm in Asia.
The round was participated by top investors and financial institutions in Asia, including Galaxy Interactive, Mirae Asset Capital, and Youbi Capital.
Leading up to the Bitcoin bull run in late 2020, the popularity for CryptoQuant started to significantly increase.
The CryptoQuant team in the Seoul office.
The demand for Bitcoin trading spiked along with the price of crypto assets, causing traders to flock to platforms that provide useful data about the crypto market.
CryptoQuant allows users to get access to actionable insights to trade cryptocurrencies, based on-chain data.
Cryptocurrencies are based on a public ledger called the blockchain technology. Thus, it is possible to analyze data on the blockchain, such as the movement of funds and whether high-net-worth investors could be buying or selling Bitcoin.
Analysts describe the publicly available data on the blockchain as “on-chain data.” CryptoQuant sources on-chain data to traders on its platform.
Some examples of on-chain data are Bitcoin inflows and outflows. For instance, when the Bitcoin inflows into exchanges rise substantially, it might indicate that high-net-worth investors could be preparing to sell.
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Since whales hold Bitcoin on self-hosted wallets, for whales to sell Bitcoin, they have to move their holdings into exchanges.
The variety of the types of data that can be sourced on the blockchain allow platforms like CryptoQuant to source a large number of data sets.
Another example is the Coinbase premium. Coinbase is the most widely utilized cryptocurrency exchange in the U.S.
Hence, if the price of Bitcoin is trading at a higher price or at a premium on Coinbase, it might indicate that traders in the U.S. market could be buying.
The diversity of actionable data on CryptoQuant, combined with the recently released feature “Quicktake,” which allows verified analysts to share market trends with the platform’s users, makes CryptoQuant a useful tool for both casual and professional traders.
CryptoQuant’s new feature Quicktake allows verified analysts to share market data with users.
Galaxy Interactive’s Richard Kim said:
“We are excited to back CryptoQuant, a community-driven trading analytics platform for Gen Z and millennial investors. Today, Gen Z and millennial investors find trade ideas through social platforms like Reddit, Twitter, etc. They visit those social platforms to get information, but the signal to noise ratio on existing platforms floods out useful information.”
Kim emphasized that the curated analysis on market activity and trends on CryptoQuant makes the platform particularly practical for retail traders.
“CryptoQuant’s mission to become the gateway for quantitative, community driven, actionable insight sits neatly within our thesis of investing in ‘enlightened retail empowerment”. Through the platform’s combination of fundamentally sound flow analytics with curated analysis on market trends, we believe CryptoQuant has the potential to build one of the leading social fintech communities in the crypto ecosystem,’ said Kim.
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Author: Joseph Young, Contributor