Blockchain startup Band Protocol has secured $3 million in a recent funding round led by venture capital firm Sequoia Capital India.
Announced February 18, the seed funding round was participated by several other investors, including early-stage venture capital company Southeast Asia Exponential Ventures (SeaX), and Dunamu & Partners, the investment subsidiary of the FinTech firm behind the South Korean crypto trading platform Upbit.
Founded in 2017, Band Protocol is a Thailand and Singapore-based blockchain startup that offers a permissionless blockchain platform for creating token-curated communities, each with its own personalized tokens primarily used as an economic incentive for reliable content producers. As the firm detailed, the seed fund will be invested in product development as well as market strategy establishment.
The “band” token was introduced to reward content creators for providing well-founded information, thereby allowing communities to build up a reliable knowledge base. The token is staked by data curators, incentivizing honesty while penalizing bad actors, the firm explained, adding that:
“Active users and content creators are rightfully rewarded for their contribution and retain the power they deserve as data owner. This allows potential monetization and governance of online communities.”
Underscoring the proliferation of sketchy news online, the announcement cited an Ipsos study conducted in 2018 that polled over 19,000 respondent across 27 jurisdictions. According to the results, nearly half of the total number of respondents have, at some point, come across hoax reports over the internet.
Further addressing the prevalence of unreliable online content, Band Protocol co-founder and CEO Soravis Srinawakoon noted:
“As blockchain developers and technology enthusiasts, we have noticed a growing unavailability of trustable data on the internet, coupled with the rising trend of fake news.”
As Srinawakoon highlighted, Band Protocol was founded in a bid to “bring online, digital communities together by creating a blockchain-enabled platform for transparent and reliable data.”
To that end, the protocol offers a number of applications for firms involved in fraud detection, identity verification, compliance, as well as for credit bureaus and online fora.
To promote widespread adoption of the platform, the firm is also looking into a number of scaling solutions both on Ethereum as well Tendermint, a consensus algorithm & p2p networking protocol.