Users willing to share their data with Delphia will receive freely-tradable ERC-2 token-based rewards.
On June 8, investment adviser firm Delphia collected $60 million in a Series A funding round led by one of the largest crypto-based investment companies dubbed Multicoin Capital. The funding also saw participation from other well-known firms, including Ribbit Capital, Valor Equity Partners, Lattice Ventures, FTX Ventures, Cumberland, and Fj Labs.
On top of that, the $60M funds will be used to explore new methods of how consumers might provide data to algorithmic models, expand the team, and, most importantly, launch a new Delphia Data rewards token.
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According to the official announcement, Delphia is on a determined path to explore and build a data-based decentralized autonomous organization (DAO). With DataDAOs, Delphia essentially seeks to “achieve some greater benefit, and share those benefits with the user who contributed the data.”
Tushar Jain, tech entrepreneur and managing partner at Multicoin Capital, expanded upon the importance of such data-based DAOs and stated that the data retrieved will be also used to boost the trading algorithms. He continued:
“DAO is a new tool for managing assets, risk, and data. Multicoin Capital’s managing partner Tushar Jain told TechCrunch.” In the long run, data DAO is beyond the crypto market to the world. I think we’re looking for a new business model that competes with some of the biggest data-centric companies.“
Moreover, Jain underlined that there is a significant challenge in collecting a significant amount of unique data sets. He stated that users willing to share data are “rarely rewarded” as “they don’t have a right to the value created by the aggregate data, nor are they entitled to govern how their data is used, which leads to a massive leap of faith in the aggregator - which, unfortunately, has been violated many times over.”
With DataDAOs, the firm will try to get to the bottom of this “misalignment” by providing “data contributors direct economic upside in the aggregate data and the ability to govern it.” The data that can be collected varies, for instance, it could include LinkedIn and Clickstream social media platforms, credit card operations, etc.
In addition, a Delphia Data token will be reportedly fired up this summer. From then on, consumers that will be open to sharing their data with Delphia will receive ERC-2 token-based rewards that can be traded without any restrictions. Likewise, such token holders will be onboarded on a membership that will provide them with early access to new products or even lower fees. Andrew Peek, CEO of Delphia, also stated:
“We think of consumer data generally as giving a signal about demand, but actually when you have a line with the individual providing the data you can get things like LinkedIn data or things that are not commercially available, which might point to other parts of a set of financial statements.”
In other news, earlier in May, Goldman Sachs and Barclays participated in a $70 million Series A funding round of Elwood Technologies and placed the company at over $500 million.
