Coin Metrics, the provider of crypto-asset data and infrastructure for institutional investors, announced that it completed a $6 million in a Series A funding round.
According to the company’s blog post, the capital will be used to continue to strengthen and grow Coin Metrics’ team, expand product offering and provide enhanced coverage of digital assets.
Coin Metrics, the blockchain data analysis provider, says the funding round was led by Highland Capital Partners. Other companies such as FMR, LLC, Castle Island Ventures, Coinbase Ventures, and Digital Currency Group supported the $6 million funding round.
The company was created three years ago as an open-source blockchain network data and analytics project. It has since become a major industry resource for understanding all the operational and economic activity occurring on a public blockchain that can be observed by running a full node.
The need for data analysis
Since technology evolves and many companies are adopting blockchain or use of cryptocurrencies, the demand for structured data and meaningful insights is growing.
Although data analysis is a common tool for financial institutions, crypto-related data seems to be equivalently important as digital assets continue to draw interest and investments from traditional capital markets.
Sean Judge, the Principal of the global venture capital firm Highland Capital Partners, said that since financial institutions require clean and transparent data to make decisions, the same requirements exist for Bitcoin and other crypto-assets that have emerged over the last decade.