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In a token sale that has again proven investors still have a keen interest in Ethereum applications, the blockchain data startup, The Graph has raised $5 million in funding from investors.
The company that specializes in aggregation of data from the Ethereum blockchain announced the success of the token sale which has entities such as Coinbase Ventures, DTC Capital, Multicoin among others as investors.
The token was sold through the simple agreement for future token (SAFT) arrangement which focuses on accredited investors.
Popular Tool Among Developers
The CEO of the company, Yaniv Tai said that The Graph’s tools are popular among developers. Some of the major customers of the company are Uniswap, the decentralized exchange (DEX), and the Aragon project.
The Graph has developed sets of tools that enable developers to gain insight into Ethereum data just as people search for information using Google search. The merit of the service is that users don’t need to run a node to gain necessary insight.
The co-founder of Uniswap Hayden Adams said that the company depends on The Graph for its analytics even though most of its DEX is dependent on nodes operated by Infura, the API operator owned by ConsenSys. Adams said:
“As a company we don’t manage or run our own databases. … Right now it’s pretty difficult to get historic data from the Ethereum blockchain in an efficient way.”
Ethereum dApps Favored
Interestingly, The Graph runs open-source software so is not promising quick returns. That the company could gain the confidence of investors is indicative of bullishness towards decentralized apps (dApps) on the Ethereum platform.
Tai, the company’s CEO said that the tokens have not been distributed yet. He added that the firm took a cue from Compound, the decentralized finance that attracted funding from investors such as Coinbase.
The Graph is not new to token sales. Earlier last year, it raises $2.5 in a funding round. The company plans to extend its service beyond Ethereum. Tai said the firm of 17 already have their sights on other blockchains.
A Worthwhile Investment
One of the investors in the funding is Framework Ventures. The company’s partner, Michael Anderson said they are happy to back The Graph:
“We couldn’t be happier to back Yaniv and the team, and we look forward to helping grow the decentralized network when it launches.”
Anderson’s firm is also an investor in ChainLink which shows that it is betting on backing the Ethereum network.
Tai believes that 2020 will be a good year for token sales despite the bad experiences of 2017 and 2018. The reason according to him is that projects are now focused on solving real problems.
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