Announcing Our Pre-Seed Round in Oamo
We’re thrilled to announce our $1.25m pre-seed investment in Oamo, a decentralised data broker allowing individuals to own and monetise their data while remaining anonymous. Here’s why we invested.
User data has become a commodity in the twenty-first century. Understanding who users are, what they do, and how they interact helps businesses build their products and acquire users more effectively.
Use cases and insights from aggregated data about the customer demographic include:
Marketing (e.g. targeting specific audiences with social media campaigns)
Product (e.g. optimising website design for desirable user behaviour)
Strategy (e.g. effectively prioritising the financing of R&D into new products in line with consumer trends).
Customer selection (e.g. credit scoring and risk analysis)
Customer protection (e.g. fraud detection).
These demand-push factors are complemented by an ever-green abundance in supply, with data readily available from open banking, social media, Internet of Things (IoT) technology, and mobile apps.
As a result, the data brokerage industry is booming. With an estimated total of 5,000 data brokers, at an estimated value of $257bn in 2021, data broker revenue is expected to grow at 4.5% from 2022 to 2029 and reach nearly $365bn.
Now, Web3 companies have the same fundamental need for user acquisition and retention that Web2 companies do. They also have their own unique demands for an ID and data tracking solutions, such as:
Understanding their target audience’s behaviour
Understanding their token owners and dApp users’ behaviour
Reaching, communicating with and rewarding their target audience
Airdrop strategies, including identifying and incentivising top contributors)
Ostensibly, a lot of this data is freely available on chain, and accessible through chain data index and query solutions. An abundance of on-chain analytics platforms have developed over the years, making it easy to get raw data about protocol performance and individual wallets like ERC-20 and NFT holdings, dApp interactions, and trading frequency.
However, users remain excluded from the value, with analytics platforms taking most of the profit from businesses instead. And for businesses — the end customers — we’ve noticed a few big gaps:
They cannot understand how cohorts of users with specified characteristics behave, interact, and react over time.
The marketing stack remains limited to Web2 native strategies such as sponsored posts or email marketing. This means it is difficult to effectively reach target audiences and personalise promotions, leading to low conversion rates and low ROI for campaigns.
Historically, these problems have been difficult to solve due to the nascency of required technology. There were two components which were unaddressed until the past year.
No way to identify distinct individual users and attach KYC and other credentials to their profiles. The only identification was the wallet address, of which each user can have infinite numbers.
Regularly writing and updating large amounts of user information onto general-purpose blockchains is extremely costly, and exposes user privacy. The average user is unlikely to be willing to store identification data about their age, gender, location, profession, and online activity on-chain, as this is visible by default.
The first problem has been tackled by various decentralised identifier (termed DIDs) solutions that have developed over the past 12 months. Soulbound Tokens (SBTs), first described in Weyl and Buterin’s white paper in May 2022, are digital identity tokens that represent the traits, features, and achievements that make up a person or entity. Verifiable Credentials (VCs), meanwhile, are issued by third-party authorities to prove a certain assertion or claims of a person.
The second problem (namely, the privacy of on-chain data) is also being addressed. Decentralised storage networks like Arweave have been specifically designed for permanent data storage, requiring ‘proof-of-access’ for miners which preserves user privacy. However, though general purpose storage networks like Arweave and IPFS guarantee immutability which is useful for permanent properties, most interactions which businesses would want to track are mutable data points. This is where Ceramic comes in as a protocol of decentralised data mutation and composability, which works by taking immutable files from IPFS or Arweave and turning them into dynamic data streams, akin to its own mutable ledger. This enables truly decentralised, privacy-first, and automatically updating data storage.
Combined, these developments have incubated an extensive Web3 Identity stack. In 2022, companies that classify under the Chain Analytics and Market Data/Analytics subcategories raised $406m and $391m respectively, according to the Block.
Now there is a rich identity ecosystem ready for a data insights layer to tie together the full stack.
Enter, Oamo.
Oamo is a decentralised data broker that allows individuals to own and monetise the value of their data. The platform will enable users to share their on-chain and off-chain data anonymously with trusted companies in exchange for exclusive token rewards and promotions.
Businesses can create data pools with selected attributes of their target audience.
Users, meanwhile, create an Oamo profile as a DID on Ceramic. They then choose which wallets and social profiles to connect, and Oamo then generates credentials for each data point. Everything is securely encrypted with Lit Protocol.
They can then opt-in to pools for which they have the required credentials and contribute data. Upon opt-in, users earn rewards set by the data buyers (ranging from stablecoins to native tokens) while their data is aggregated and anonymized with all other pool participants to generate behavioural insights.
Businesses can also send tailored promotions and surveys to data pool participants directly via Oamo’s messaging system. By using on-chain and off-chain criteria, Oamo guarantees high-quality leads that fit their target audience receive the offers.
This model completely overhauls the existing Data Economy, by making it more efficient, profitable, and fair.
When Yannick and Ahmed came to us with Oamo, we knew they were the ones to crack this. Yannick was an analyst at White Star seven years ago, and helped author our first internal Blockchain report. He then went on to work as an early employee at Figment leading its DataHub team. Ahmed, meanwhile, after a five-year tenure at Eventbrite built a software development and blockchain firm Product Shop, building out the technical expertise required for Oamo’s product development.
We’re super excited to be backing them and the rest of their stellar team as Yannick comes full circle.
Sign up to Oamo’s waitlist now, and stay tuned for their launch with Index Coop and Lighthouse this summer!
🔦 White Star & Portfolio Spotlight
Dfns adds Biometric support to Wallet development toolkit
Dfns plans to add biometric identification to its wallet-as-a-service toolkit, enhancing security and user experience. It combines multi-party computation (MPC) with "delegated signing," ensuring greater security, reduced downtime vulnerability, and regulatory compliance.
Safello partners with Januar to enhance financial infrastructure
Safello partners with Januar to integrate decentralized finance solutions into its financial infrastructure, ensuring secure and compliant acceptance and payouts in the digital asset space. This collaboration aims to enhance Safello's services for businesses and individuals in the Nordic region.
IndexCoop introduces icRETH, enhancing exposure to Rocket Pool's rETH
The newly launched icRETH on the IndexCoop governance forum provides amplified exposure to Rocket Pool's rETH token through leveraged staking. Operating on Aave v3 with High Efficiency Mode, icRETH offers a higher safe leverage ratio and better potential returns compared to similar products using Lido's stETH.
ALEX collaborates with the creator of the BRC20 Token Standard
ALEX partners with @domodata, creator of the BRC20 token standard, to develop a trustless on-chain indexer. Their goal is to minimize centralization risks in BRC20 markets and promote sustainable growth. They emphasize the importance of on-chain indexing and trustless decentralization, working towards a robust and decentralized infrastructure.
🏦 Enterprises & Institutions
Uniswap update means 'The possibilities are pretty endless,' says Developer
Uniswap, the top decentralized exchange (DEX), announces Uniswap v4, introducing customizable features and releasing the core code for community development. The addition of "hooks" in smart contracts enables innovative possibilities like time-weighted average market makers and dynamic fees, while drastically reducing gas costs.
Generative AI will have 'Enormous Impact' on Business, execs admit—But not right away
Corporate executives have mixed views on generative AI, with some anticipating significant impacts on business. However, many are still a year or two away from implementing generative AI solutions due to barriers such as costs, cybersecurity, and data privacy concerns, according to a recent survey by KPMG.
Apple Vision Pro vs. Meta Quest Pro
Apple has introduced its Vision Pro mixed reality headset, offering AR and VR capabilities, while Meta's Quest Pro provides a more advanced version of its Quest 2 device. The devices differ in design, hardware, price, power, and content, with Apple's Vision Pro priced at $3,499 and featuring superior display resolution, while Meta's Quest Pro is priced at $1,000 and emphasizes affordability and access to a VR app and game library.
Puma collaborates with NBA Star LaMelo Ball and Gutter Cat Gang for limited-edition NFT sneakers
Global sports apparel company Puma is teaming up with NBA star LaMelo Ball and NFT project Gutter Cat Gang for a limited-edition sneaker collaboration. The sneakers will be sold as NFT collectibles on OpenSea and can later be exchanged for physical sneakers, marking Puma's expansion into Web3 and the basketball sneaker market.
⚖️ Government & Regulation
Rishi Sunak’s £100 Million plan to make the UK an AI hub
UK Prime Minister Rishi Sunak unveils a plan to establish the country as an AI hub, investing $100 million in an AI Taskforce and scholarships. Emphasizing AI safety, the government collaborates with industry leaders like DeepMind and OpenAI, sparking concerns about biases and power dynamics.
BinanceUS responds to fraud, market manipulation, asset safeguarding claims
Binance.US has responded in court to the SEC's allegations, asserting that it has diligently cooperated with the investigation since December 2020. The company maintains that customer assets are kept separate from corporate funds, but the SEC contends that there is a lack of separation between Binance and Binance.US. Binance.US opposes the SEC's request for a temporary restraining order, arguing that a freeze on asset transfers is unnecessary as they have already agreed to abstain from such transfers.
Hong Kong Lawmaker invites Coinbase to apply to operate in region amid U.S. SEC crackdown
Hong Kong lawmaker Johnny Ng has invited global virtual asset trading operators, including Coinbase, to register in the region following the acceptance of applications for crypto trading platform licenses by Hong Kong's Securities and Futures Commission (SFC). This invitation comes amidst a U.S. crackdown on crypto exchanges, and although Coinbase is expanding globally, it remains committed to advocating for regulatory clarity in the U.S.
A16z chooses London as destination for first office outside U.S.
Venture capital firm Andreessen Horowitz (a16z) has selected London for its first international office, aiming to support the growth of the crypto and startup ecosystems in the U.K. and Europe. With confidence in the U.K.'s regulatory direction, a16z sees potential for the country to lead in crypto regulation, while also continuing its efforts to promote regulatory clarity for crypto startups in the U.S.
💰 Funding & Exits
Blockchain-based marketplace for compute power Gensyn raises $43 million
Gensyn, a London-based blockchain marketplace protocol, raised $43 million in a Series A funding round led by A16z Crypto. The platform connects buyers and sellers of compute power, enabling developers to build AI systems using connected hardware on-demand, with a focus on democratizing AI development and reducing bias.
Bitcoin-denominated Life Insurance provider sets up shop with $19M funding
Meanwhile Insurance Bitcoin (Bermuda) raised $19 million to develop an AI-assisted life insurance policy denominated in Bitcoin. Targeting U.S. citizens with large Bitcoin holdings, the company plans to use AI for underwriting and claims, while policyholders will face risk from Bitcoin price changes affecting payout value.
Lens Protocol raises $15 million to expand Decentralized Social Media
Decentralized finance leader Aave has raised $15 million for Lens, its NFT-powered protocol for decentralized social media platforms. Lens, built on Polygon, allows users to own their online presence and transfer social data across different networks.
Taiko raises $22 million across two rounds for its ‘Type 1 zkEVM’
Taiko Labs has raised $22 million across two funding rounds led by Sequoia China and Generative Ventures. Taiko is focused on developing a scaling solution for the Ethereum blockchain, aiming to closely follow Ethereum's design and operate as a non-profit organization similar to the Ethereum Foundation.
HyperPlay raises $12 million to drive interoperability in Web3 gaming
HyperPlay, a Web3 game launcher and cross-chain aggregator, has raised $12 million to promote interoperability in Web3 gaming. The platform allows players to carry their MetaMask wallet and assets across games, while supporting developers with a developer-friendly environment and no in-game economy taxes.
Haun Ventures leads $10M Seed Round for Web3 Gaming Studio Argus
Crypto investment firm Haun Ventures has led a $10 million seed round for Web3 gaming studio Argus, with participation from Robot Ventures, Anagram, Dispersion Capital, Alchemy, and individual investors. Argus has also unveiled the World Engine, an SDK enabling developers to build their own blockchain-based gaming ecosystems, aiming to fuel innovation and growth in the Web3 gaming space.
Informal Systems raises $5.3 Million to boost development in Cosmos Ecosystem
Informal Systems secures $5.3 million in funding led by CCMC Global to support its role as a core development team in the Cosmos ecosystem. The funds will enhance Informal Security, the company's security auditing division, and drive technology development for blockchains in the Cosmos ecosystem, including its Collaborative Finance project.
Collectibles.com raises $5 million to build world's first Web3 Collectibles Marketplace
Collectibles.com raises $5 million in a seed round led by Blockchange Ventures to develop the world's first Web3 community and marketplace for collectors. The platform aims to enhance user rewards, collection management, data accuracy, and market transparency in the global collectibles market using blockchain integration and the Collectibles Protocol.
BoomFi secures $3.8 million Seed funding to streamline Crypto Payments
Payments company BoomFi has raised $3.8 million in an oversubscribed seed funding round led by White Star Capital. BoomFi aims to transform crypto and digital currency payments for web3 businesses by simplifying the complexities of chains, payment rails, and currencies, providing a seamless and integrated payment experience across multiple blockchains and traditional systems.
🚀 Project Launches & Updates
Meta introduces MusicGen, an AI-powered music-generating tool
Meta has launched MusicGen, an AI-powered music-generating tool trained on 20,000 hours of music, including 10,000 hours of licensed songs. It can create short music clips based on text prompts and references to specific eras or songs.
Paul McCartney says 'Final' Beatles song coming soon—Thanks to AI
Paul McCartney used artificial intelligence (AI) to finish an unreleased Beatles song by extracting John Lennon's vocals from an old demo tape. The track, speculated to be "Now and Then," will be released later this year with the help of AI technology developed for Peter Jackson's "Get Back" documentary.
Snoop Dogg drops new NFTs that evolve with his tour
Snoop Dogg has launched the Snoop Dogg Passport Series NFTs, offering holders access to exclusive content and evolving utility during his summer tour. The series includes Snoop Selects, a curated collection of NFT artwork airdropped to all passport holders, available for purchase at around $42 or 0.025 ETH through Crossmint and crypto wallets.
🔥 Other Bits We're Excited About
Guy Fieri and Sammy Hagar launch Web3 Tequila loyalty program
Guy Fieri and Sammy Hagar launch the Santo Spirits Club NFT loyalty program, rewarding members with tiered perks like virtual tequila tastings and autographed guitars. Built on the Near Protocol and leveraging Trident3, the program aims to foster community and brand loyalty, with additional rewards tied to the release of Santo Añejo Tequila.
Metaverse Beauty Week aims to showcase the branding potential of the Metaverse
Metaverse Beauty Week (MBW) demonstrates the value of immersive virtual marketing for cosmetics brands, hosting events on Decentraland, Spatial, and Roblox. Participating brands like Neutrogena and Lush provide creative virtual experiences to engage consumers and express their brand identities in the metaverse.
Meet PassGPT, the AI trained on millions of leaked passwords
PassGPT, a password-guessing model created by researchers from ETH Zürich, Swiss Data Science Center, and SRI International, utilizes OpenAI's GPT-2 architecture and is trained on leaked passwords. It employs progressive sampling to generate complex passwords and has the ability to guess unseen passwords while analyzing password vulnerabilities.