Founders:Vijay Pravin Maharajan, Saravanan Jaichandaran
Co-Investors:Animoca Brands, Chainlink, Coinbase Ventures, Polygon
Launch Date: May 2020
What is bitsCrunch?
bitsCrunch is revolutionizing the data analytics space, providing multi-chain insights to NFT and digital asset users. Their pioneering crypto data forensics allow retail, institutional, and venture investors to make informed decisions when investing in crypto assets. From NFT marketplaces to lending protocols to holders and full chains, bitsCrunch offers comprehensive capabilities to make the crypto investing journey more sustainable and transparent.
Why we invested?
bitsCrunch helps web3 investors to capitalize on the exponential growth of the NFT and digital asset markets. The project’s market-leading data analytics technology and multi-chain insights capabilities enable retail, institutional, and venture investors to make informed decisions in the crypto asset space. Their comprehensive data insights and forensics tools will eliminate fraud and wash trading and help to create a more transparent and secure future for all digital assets.
By facilitating the development of a secure, transparent, and sustainable ecosystem, bitsCrunch is well-positioned to benefit from the continued growth of the NFT digital asset markets.
Vijay Pravin Maharajan- Vijay is one of India’s top Data Scientists, he was the first Indian entrepreneur to be invited for TEDx talk in Germany, and has presented TEDx talks at three locations. He previously worked for Telefónica Germany and Volkswagen AG as a Data Scientist.
Saravanan Jaichandaran- Saravanan is a Blockchain Analytics professional with 6+ years of proven experience in Machine Learning, Deep Learning, and Data Science. Before joining bitCrunch as a co-founder Jaichandaran worked as a Data Scientists at Pyramidion Solutions.
Challenges in the current landscape
Keeping track of your favorite collections and their current valuation can be a difficult task due to the increasing number of NFT collections across different marketplaces and blockchains. To successfully manage a portfolio, tools must be developed to monitor and view the collections, while also being able to detect any signs of manipulation.
Washtrading is a deceptive practice of buying and selling a security for the purpose of creating a false appearance of market activity. This practice is damaging the reliability of statistics on the platform’s growth and reach, and is forcing investors to rely on less and less reliable sources of information.
As it is difficult to verify the authenticity of an NFT, there is no accurate current value of an NFT asset. This can lead to either inflated or deflated pricing of an NFT asset, making it difficult for collectors and traders to make informed decisions. Furthermore, this lack of accurate pricing and valuation is hampering the utility of NFTs in the DeFi space.
It is easy for bad actors to simply right-click, create a duplicate of the art and mint it as a new NFT. This is damaging the reputation of the creator and the NFT marketplace, and will eventually reduce the value of NFT digital art. Measuring the authenticity of an NFT and making sure it is not a forgery is an important step to maintaining trust and transparency in the NFT space.
Lack of transparency in the NFT market is posing a threat to its growth, as it is difficult to trust the source of an NFT due to its decentralized nature. To ensure the authenticity of the NFTs and to maintain trust and transparency, a secure platform is needed to provide the necessary information and verify the authenticity of an NFT.
BitsCrunch’s NFT market cap website, UnleashNFTs, provides near real-time tracking and analytics on NFTs. It enables users to view, track, and analyze their favorite collections, while also providing key NFT statistics in an easy-to-consumable way. It also has many B2C functionalities, such as portfolio management and NFT wallet tracking, making it an all-in-one platform for NFT traders and collectors.
BitsCrunch has created a product that provides services around wash trade detection and prevention. It scours through all NFT transactions to identify patterns that are classic wash trading and flags them. It utilizes AI and ML to continuously detect newer patterns and alert potential wash trade to help protect the NFT ecosystem. This will help to ensure the reliability of statistics about the platform’s growth and reach, and make the due-diligence process much easier for investors.
BitsCrunch’s product will allow NFT collectors/creators to estimate a fair price for an NFT based on multiple parameters (eg: NFT creators' past track record, content type, etc). This will enable users to make informed decisions when purchasing or trading NFTs, and will also help to increase the utility of NFTs in the DeFi space.
BitsCrunch is working with top AI experts to create advanced models for detecting NFT art forgeries. This will help to clean up the NFT ecosystem of forgeries and maintain trust and transparency in the NFT space. It will also protect the reputation of the creators and the NFT marketplace.
Apart from these products and services, BitsCrunch is also building servers that are focused on enabling and protecting the NFT ecosystem. Such an infrastructure will provide reliable access to data and analytics, while also securely storing, authenticating, and managing NFTs. It will be designed to handle the scale of the NFT market and facilitate its growth of the NFT market.
bitsCrunch’s core technical objective is to provide high-quality analyzed result data on NFTs, NFT transactions, and the wallets holding NFTs. Their products rely on timely and accurate blockchain data, hence they have multiple data sources to ensure they have consistent and up-to-date information. They use AI/ML to find patterns of wash trade, understand on-chain and off-chain behavior, and price movement of an NFT token and also continuously detect other issues or opportunities to help the NFT ecosystem and the communities around it. Their design principles can be summarized as 4C principles: Consistency, Completeness, Correctness, and Consciousness. We are building our solution API centric to enable easy integration with all types of consumption channels. They wish to gradually shift towards partial decentralization and then eventually a decentralized architecture.
This picture depicts the layered architecture of the bitsCrunch stack. They use Kubernetes to fulfill our technical objective of providing deep analytics on NFTs. Their choice is also based on the fact that Kubernetes provides a vendor-agnostic infrastructure and helps any potential migration or multi-cloud vendor scenario. Their intelligence layer relies on both on-chain and off-chain blockchain data to run the advanced AI/ML algorithms and models to detect wash trade patterns and other insightful information on NFTs. On their Cognisense layer, they store the consolidated insight data on NFTs that will be then used to provide a wide range of NFT ecosystem-securing services to different customer groups. These services are exposed via their UI or can also be accessed through secure APIs.
According to a report published by global research firm VMR (Verified Market Research), the NFT market is projected to reach a value of $231 Billion by 2030. bitsCrunch is helping web3 investors to capitalize on the exponential growth of the NFT and digital asset markets. Their comprehensive data insights and forensics tools will eliminate fraud and wash trading, creating a more secure and transparent future for all digital assets.
Additionally, the company's team is led by highly experienced data scientists with a proven track record in the industry, which further strengthens its position in the market.