a16z leads a $ 12 million financing round at DeFi tracking platform Nansen

Venture capital investments in blockchain analytics platforms in the decentralized finance (DeFi) market are very active. And Nansen, a company that tracks DeFi cryptocurrencies, has just raised $ 12 million in funding.

Nansen, a DeFi cryptocurrency tracking company, has successfully raised $ 12 million in a Series A funding round led by hedge fund Andreessen Horowitz (aka “a16z”). Many other investment funds also participate in this financing round, such as: Skyfall Ventures, Coinbase Ventures, imToken Ventures, Mechanism capital, QCP capital.

Tracking cryptocurrencies from personal wallets to exchanges or other platforms has become a subsector in the cryptocurrency market. In the last few weeks, many startups in this area such as Chainalysis, TRM Labs, CipherTrace have also been successful with large fundraising rounds.

In the past, blockchain analytics has often been associated with regulators and law enforcement agencies. However, Nansen, a Singapore-based company, isn’t like that.

“Our philosophy has always been that the people on the crypto ground floor, the actual market participants, should also have access to the best blockchain analytics.” – CEO of Nansen, said Alex Svanevik.

Since DeFi has attracted a lot of attention, Nasen is tracking the flow of money between different smart contracts to identify, for example, the hottest platforms for high-yield farming.

So far, the company has analyzed the activity of around 90 million wallets on the Ethereum platform, or around 70% of the total on-chain activity of the DeFi market.

“As participation in open global financial markets increases, traders and investors of all kinds, from young private investors, independent professionals or professionals from organizations …, want to understand what smart contracts do on all blockchains.” – Chris Dixon, Head of Partnerships at a16z, expressed his opinion.

It’s worth noting that large blockchain analytics platforms like Elliptic and CipherTrace are able to track cash flows across decentralized exchanges (DEXs) and DeFi pools. Unlike these companies, Nansen does not focus on risk assessment. This data-providing service enables users to determine their own needs.

“We don’t have a particular position on how we think things will go. We are not basing our company on any future DeFi KYC version. – Mr. Svanevik shared.

Synthetic

You may be interested in: