Why We Invested: Covalent
At AU21 Capital, we are delighted to announce our recent investment in Covalent, an API that empowers wallet owners to rapidly access and analyze metrics related to their digital asset portfolios like never before. Our backing serves to improve transparency for cryptocurrency investors, leading to significantly accelerated adoption and growth for the blockchain space.
Disorderly Data Leaves Investors Flying Blind
To put it simply, existing digital asset management tools fail to offer any insightful or useful information to investors in a timely manner. Asset management platforms each incorporate hard-to-scale infrastructure that sluggishly parses through gargantuan, complex and disconnected data sets to return a minimal amount of material.
This detriments application developers and end users alike, costing both parties time and money.
Application developers must sink considerable resources to achieve mediocre data analysis as their platforms scale up. Engineers must scramble to expand brute-force chain analysis programs that are inherently inefficient, lessening the ability to focus on more lucrative and impactful platform upgrades.
Cryptocurrency asset valuation remains a dilemma regardless of the amount of capital expended on analysis tools, leaving investors scrambling to calculate their tax liabilities and the cost basis of their assets. Furthermore, there are no existing tools that provide individual investors with data relating to their participation in complex crypto investments, like staking. Instead, investors are forced to view fragmented feeds to ascertain the state of their position.
Covalent — Manifesting Clarity From Chaos
Covalent leverages big-data technologies to create meaning from hundreds of billions of data points, delivering actionable insights to investors and allowing developers to allocate resources to higher-utility goals within their organization. Instead of painstakingly sourcing data from a small handful of chains, Covalent aggregates information from across dozens of sources including nodes, chains and data feeds. The Covalent API then sources end users with individualized data by wallet, including current and historical investment performance across all types of digital assets. Most importantly, Covalent returns this data in a rapid and consistent manner, incorporating all relevant data within a single API interface.
We are excited to work alongside Covalent as they raise the bar for digital asset transparency, and enable developers to focus their energy and capital on what matters most — creating transparency and accessibility in the global financial system.
