Blockchain Technology-Based Company Coinalytics Raises $1.1M

Coinalytics has announced that it has raised $1.1M as part of a seed round. The funding was led by The Hive, a Palo Alto-based incubator.

Coinalytics, founded in 2014, is a startup that provides tools to gain insights into blockchain data. The company lets clients in the bitcoin space—including unnamed payment processors, wallet providers and exchanges—to conduct risk assessment through the analysis of blockchain.

The funding will be used to build the company’s sales team and other growth areas.

Fabio Federici, CEO of Coinalytics explained that by using the blockchain and its in-house tools for recognition of pattern and real-time online learning, Coinometrics gather data and research on qualitative and quantitative behaviors on blockchains

He commented, The maturation of a market is often defined by its ability to provide analysis and insight on transactions and developments. Our platform offers enterprises a real-time ability to convert information into action that will break down a significant barrier for mainstream adoption of the blockchain.

Many startups are building their businesses around blockchain technology. Consequently, VC firms like KPCB are showing interest in investing in these startups, like BTCJam who provide bitcoin-based loans. Other startups built around blockchain technology include BlockCypher, BitPay and BitPagos. Another interesting startup, Chain, helps companies build financial products around blockchain technology with its bitcoin data API. NASDAQ has chosen Chain to run a pilot around blockchain technology on the NASDAQ Private Market.

With the growing applications of blockchain technology and triggers by VC firms, like KPCB Edge funds, the day is not too far when the blockchain might disrupt the entire FinTech industry.