We’re writing this post because we would like to formally lay out the Coinmetrics funding model. We have decided to accept sponsorships from individuals and organizations who wish to support our project. Sponsors won’t have control over editorial decisions or the functioning of the site. They will have closer access to the founders and they will get their names on our Sponsors page.
We hope that if our data brings you significant economic benefit, some of you may seek to share that with us, so that we can keep the site running. We run an extremely lean operation, and our costs are fairly minimal, but they are still too significant for us to subsidize on our own.
As you probably know, we don’t really monetize the site. Even though most of you use adblockers, we protect your privacy and your browser security with a strict prohibition on ads. There’s no borderline-malware webminers running in the background, no referral links, no advertorial content. (In the spirit of full disclosure, we do list our sponsor OnChainFX in the “Useful Resources” page.)
However running a lot of full nodes, scraping that data, and presenting it in a palatable form does get fairly expensive. In the early days of the site we simply subsidized it out of our own pockets and through the generous donations of others. However, at scale this model doesn’t really work. So we looked through our options – perhaps a freemium model, giving free access to the charts but hiding the raw data behind a paywall? Or just taking the whole thing offline and selling expensive monthly passes to those who could afford it?
We didn’t like any of those ideas. The reason we made the site in the first place was simply out of curiosity, and later to share those findings with the world. We knew about BitInfoCharts, which does similar things, but we wanted to put our own spin on the topic. The truth is, we couldn’t find the data we were after anywhere so we built it ourselves. And once we had it, we figured we might as well share it. So Coinmetrics was born. We knew that we wanted to keep the backend code open source, so anyone could audit our methodology and improve on it if they wanted. We also knew we didn’t want to host ads. But we hadn’t given a lot of thought to the business model.
Once we realized that hundreds and later thousands of people were benefiting from it, we felt compelled to improve it. The reaction from the investor and cryptocurrency community has been very positive, and there is constant demand for us to support new public blockchains/cryptoassets.
Thus we settled on sponsorships. This liberates us from the pressures of developing Coinmetrics as a business, and lets us keep our data free for absolutely everyone to use. Sponsorships will enable us to radically scale up our efforts as well. We’d like to obtain sufficient support to:
- cover our server costs, and
- grant our two programmers the ability to work on the project full time.
We are pleased to announce that our inaugural sponsor is the excellent OnChainFX. They have also begun integrating our data on their page, and we are very excited to grow with them.
If you do benefit germanely from our data, and wish to support the public good that is free and open source data, please get in touch. The best way is by DMing our Twitter account @coinmetrics.