New York-based startup Messari has obtained the seed funding the firm requires to launch the first product. Though the co-founder and chief executive officer of Messari, Ryan Selkis, did not reveal the exact amount that the startup received he said it was upwards of $1 million but not more than $5 million. Some of the investors who participated in the seed funding round included Matt Roszak, Pamir Gelenbe, Garry Tan, Anthemis Group, Underscore VC, SparkLabs Global, Semantic Ventures, Rising Tide, Kindred Ventures, Danhua Capital, Digital Asset Investment Company, Coinfund and Blockchain Capital.
The goal of Messari is to develop a database for financial disclosure focusing on virtual currencies. This database will act like the Edgar database for the stock market and which houses the securities filings of public firms in the United States. The database will empower investors with the information required to distinguish between scams and serious crypto projects.
Massive pre-sale discounts
Additionally having a data standard would also assist the media, data service firms and other stakeholders. The database would also serve a regulatory function especially since the industry is largely unregulated.
According to Selkis one of the problems that the crypto sector is facing is with regards to massive pre-sale discounts.
?In some cases, sellers of new tokens are doing the textbook definition of pump and dump,? said Selkis.
This could for instance happen when a new digital asset offers insiders a 30% discount so that if one coin is priced at $1 the insiders can have it at 70 cents. A few weeks later the holders and creators of the coin can dispose of the asset at $1 during the ICO ending up with a profit of 30 cents on every coin. Sometimes this can happen even prior to the development of a product. When the developers sell their coins during the ICO this could mean they have little incentive to come up with a good product.
To begin populating the database the four-person team of Messari will initially include such basic information as the founders? names and the early investors as well as the geographic location of the organization. Messari will also keep track of funds management by possibly linking to a cryptowallet that has been used to store the funds thereby ensuring that investors get a view of the balance sheet.
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