The analytics platform CoinScan said that it has raised $6.3 million in funding with the goal of giving cryptocurrency consumers information that may assist them avoid losses due to scams, hacks, and exploits.
Shalom Meckenzie, the largest individual stakeholder in sports betting startup DraftKings (DKNG), Mor Weizer, the CEO of gaming software developer Playtech (PTEC), and Tectona (TECT), a company that trades digital assets and is listed on the Tel Aviv Stock Exchange, support the business.
In order to create tools that help evaluate a token’s susceptibility to rug pulls or its distribution, wallet holdings, and buying and selling activity in real time, CoinScan, which has been developing for two years, is coming out of stealth.
According to blockchain security company Certik, losses from hacks, vulnerabilities, and scams in the cryptocurrency sector this year had exceeded $1 billion as of early September. This puts into perspective the scope of the issue that CoinScan is attempting to solve.