Fidelity Investments and others invest $1.9 million in a cryptocurrency data provider company

Coin Metrics, a cryptocurrency data provider firm, announced recently that it raised a whopping $1.9 million through investments from various institutions, which included Fidelity Investments, Castle Island Ventures, Highland Capital Partners and Dragonfly Capital.

Former Thomson Reuters’ executive, Tim Rice, was brought in as the co-founding CEO of Coin Metrics along with the founder Nic Carter and Aleksei Nokhrin. They originally founded the company in 2017 as an open source blockchain data and analytics project to help equip people and investors with the required data and tools related to crypto assets.

Fidelity Investments tweeted:

Source: Twitter

Originally the company was funded by donations and sponsors, but it changed after they brought in Tim Rice, launching the company to institutional investors in the cryptocurrencies.

Rice said to The Block:

“We are evolving from an open-source community-based project. We view the next iteration for Coin Metrics is building and advancing our data for institutions.”

Carter added:

“One thing we’re looking at is building out whitelists of exchanges so that the market reference rates are actually based on credible exchanges, as opposed to exchanges that engage in wash trading and other types of nonsense.”

Carter added that apart from analysis data from cryptocurrencies, they also analyzed blockchain data, which would help traders cut through the noise. Rice said that they will be providing network data along with market data and indices.

In addition to the above, Carter said:

“We basically built an Excel-like charting tool that lets your run statistical analysis on charts from your browser directly… There’s a commercial aspect to it now, but that open source, cypherpunk ethos will definitely remain.”

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