Flipside Crypto Raises $7.1 Million to Give Token Projects Better Analytics

Data analytics startup Flipside Crypto, already backed by Coinbase Ventures and Digital Currency Group, has raised another funding round to solidify its service offerings.

Galaxy Digital, headed by hedge fund veteran Mike Novogratz, led a fresh $7.1 million round in Flipside Crypto this summer.

In total, Flipside has raised more than $11.6 million since it was founded in 2017.

Although Balter said 75 organizations have signed up to receive the free Flipside Analytics suite, only a few dozen users like Algorand are paying customers so far.

"The biggest difference with Flipside for us has been the ability to customize your approach to data and analysis of results."

Whether it's looking at voting patterns, developer activity or users' trading habits, Flipside's Balter said many projects are specifically looking for activities that correlate with increased token prices.

"The interesting thing about crypto is that these networks/crypto assets trade in real time, so naturally you have price feedback for any new fundamental developments. That's both a bug and a feature. Startups aren't repriced whenever they sign a new client, so that growth isn't as evident. But in crypto assets, it's manifested in real time, so the price conversation tends to dominate."

According to Flipside Crypto's analysis of 520 cryptocurrencies, it appears the perception of a network or asset's future potential has a stronger impact on the market than its actual usage.

Avon Ventures partner and Flipside Crypto investor Sachin Patodia said in a press release that analytics are crucial to guiding long-term growth as projects "Mature" into "Mainstream businesses." As such, some investors see equity in analytics firms as bets that complement other crypto investments.

Both men said they don't view these analytics startups as direct competitors because Flipside is doubling down on serving blockchain projects themselves, while Coin Metrics is focused on investors evaluating those networks and assets.