A group of web3 companies including cryptocurrency exchanges FTX, Coinbase, Huobi and web3 development platform Protocol Labs have backed a $2m seed round for Coinfeeds, a US-based company tracking crypto sentiment on social media.
For a commodity whose value is as dependent on consumer sentiment as cryptocurrency, keeping track of what people are saying is important. With its fresh capital, Coinfeeds launched an app that allows users to monitor social media platforms popular in the web3 space – including Twitter, Discord and Telegram – and generate insights on specific web3 communities or projects.
Coinfeeds’ valuation was not disclosed.
Using natural language processing, the app aims to produce actionable insights leading to more informed decision-making.
Functionality includes custom social graphs identifying key opinion leaders for individual digital assets and the ability to track sentiment across multiple platforms and correlate it with asset price. It also allows users to see what investors are saying and retroactively check what sentiment was during notable events such as spikes or dives.
The company is also in partnership with protocol projects like Near and Graph to help keep an eye on their communities.
“Coinfeeds was developed around the idea that web3 communities are social first. Pretty much all important information is shared through some sort of social platform, which is openly accessible,” said Coinfeeds co-founder and chief executive Moyi Dang in a statement.
“The way the crypto community shares and engages with information provides auto-curation. By taking advantage of this data, we can not only filter out spam, but we can also pick up on what is important in real-time. By organising this information well, we lower the cost of doing research and we lower information asymmetry in crypto, which is very high.”
FTX, Coinbase and Huobi all invested through their respective corporate venturing units, FTX Ventures, Coinbase Ventures and Huobi Ventures. Y Combinator, which had included Coinfeeeds in its accelerator programme, and Third Kind also took part in the round.
Image courtesy of Coinfeeds
