Everipedia, which is a blockchain-based rival to the popular all volunteer-contributed online encyclopedia Wikipedia, has raised $30 million equity funding from former Wall Street macro trader Mike Novogratz's "crypto merchant bank".
On February 8, Everipedia announced that it had received $30 million of funding from a group of strategic investors in a Series A, led by crypto investor Novogratz's Galaxy Digital's $325 million EOS.IO Ecosystem Fund.
The EOS.IO Ecosystem Fund is jointly run by Galaxy Digital and Block.one, a blockchain software development company that is primarily focused on developing the EOS.IO ecosystem.
Distributed Network Advisors, also known as DNA Fund, a blockchain and cryptocurrency advisory company, is also part of the latest investment in Everipedia.
The funding was announced a day after it emerged that Novogratz secured funding for his Galaxy Digital LP, which is described as a full service, digital assets merchant bank.
Despite a broadbased sell-off in cryptocurrencies, the New York-based Galaxy Digital raised about $250 million in a private placement with investors including China's Foxconn CEO Terry Gou, Bloomberg reported on February 7.
Investors will buy shares of Galaxy Digital, through a holding company that will eventually trade on Toronto's TSX Venture Exchange, the report said.
Novogratz's Galaxy Digital plans to trade cryptocurrencies and to make principal investments. The firm also aims to provide asset management and blockchain-related investment advice to clients.
The Westwood Village, Los Angeles-based Everipedia describes itself as "a crowd-sourced wiki platform, online encyclopedia, and knowledge base." The website states that its mission is modernize and "to decentralize the world's knowledge through an open source, peer-to-peer knowledge network."
The Wikipedia rival claims to have over 3 million unique users per month, over 6 million wiki articles, and a total average of 3.5 to 5 million page views per month.
Larry Sanger, who is Wikipedia co-founder, joined Everipedia as the chief information officer on December 6, 2017, when the website announced that it would be moving the entire process of editing and storing articles onto the EOS cryptocurrency blockchain and the InterPlanetary File System, or IPFS.
The IPFS is a content-addressable, peer-to-peer hypermedia distribution protocol that aims to make the web faster, safer, and more open.
"This investment will allow us to build the infrastructure for something that desperately needs to exist, something that should have been built a long time ago: a global, decentralized, neutral forum that can credibly discover the best of our knowledge," Sanger said in the statement.
Contributors to Everipedia would gain IQ points as they add content to a page and the company is building the infrastructure needed to convert the IQ earned on the site into utility tokens.
Instead of an initial coin offering, or ICO, tokens will be distributed in an "airdrop", implying they will be given away for free, to those who already own tokens for the EOS platform, Fortune reported on its website.
Launched in December 2014, Everipedia hopes to allow more editorial decision making in the editing process and also, to provide wider breadth and scope of content versus its rivals such as Wikipedia.
In 2015, the company received seed funding from Mucker Capital and its first outside investment from angel investors including the plastic surgeon Kami Parsa, Giant Media founder David Segura and Buildzoom Cofounder and CEO David Petersen.
The next year, Everipedia secured $130,000 funding from Wefunder, a crowfunding service that connects start-ups with investors online.
Sam Kazemian, who is one of the five founders of Everipedia, states on the website that his website provides an alternative to Wikipedia, which he said is "single-sided", "not an inclusive platform" and whose editing process is "convoluted".
"The disruption of traditional centralized web services is an inevitable trend that will disrupt large parts of the internet in the next few years. This new funding helps to keep Everipedia at the forefront of this paradigm shift," Kazemian said in the statement.
The name of the website is a portmanteau of the English words "everything" and "encyclopedia."
by RTT Staff Writer
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