$ 3.2 million for building another index and doubling the team – great success for Staking Rewards.
The data on the cost, amount and time of the staking has to come from somewhere so that exchanges and trading venues can show them to their customers. It has Staking Rewards has blossomed into an established source since its inception in 2017. Mirko Schmiedl, CEO and Co-Founder reveals to BTC-ECHO that users value the company most for the “simple return calculator”. Because these make it possible to “estimate passive sources of income by staking over 200 different crypto currencies”. The company relies on “reference return rates”. These make it possible to discover and compare different staking opportunities. For this purpose, it should be possible to assess the risk yourself with the aid of the “database of thousands of staking providers”.
This concept is apparently worth $ 3,208,815 or three million Swiss francs to investors on November 23. The round was led by Galaxy Digital, Coin Shares and the Digital Currency Groupwho collectively hold approximately $ 50 billion in crypto assets.
Staking Rewards is the comparison portal for staking products
The company’s idea is to determine and provide the data for the various Proof-of-Stake (PoS) based cryptocurrencies. This process is complex, as Schmiedl explains to BTC-ECHO:
We have an individual aggregation algorithm for each integrated cryptocurrency, which pulls the data in real time from blockchain nodes or other data indexing websites at least every two hours.
The aggregated metrics differ from blockchain to blockchain. Curing the relevant metrics, endpoints, and calculations to calculate the rate of return can take up to two weeks for certain cryptocurrencies.
Mirko Schmiedl, CEO and Co-Founder
Additionally, the Staking Rewards team of 15 recently won the SR20 index released. According to Mirko Schmiedl, this acts “as a standard reference for the largest Layer 1 smart contract blockchains, similar to the DAX for the 30 largest German companies.” The index was structured as an “objective product”:
We do not take a position with the index and objectively map the market of proof-of-stake networks. We have developed a method that maps a weighting based on the total clocked value per blockchain. Similar to how the S&P 500 or DAX is also an objective index.
The investable product is also operated staking with a group of validators who also objectively reflect the market. We do not take any position on a cryptocurrency or a specific staking provider.Mirko Schmiedl, CEO and Co-Founder
According to its own information, this index outperformed the general crypto market by more than 3.5 times last year.
Millions for the team expansion and another index
In the future, Staking Rewards has set itself the goal of doubling the team size and expanding the product range. The press release states that the million now received will be used to develop a new range of products and services for the staking area, “including the development of staking index products”. Mirko explains to BTC-ECHO:
We are working with our partners to make these indices investable for everyone. For end users and against euros, as well as for large institutions and family offices. We are currently unable to share a timeline for this.
Mirko Schmiedl, CEO and Co-Founder
Is staking the future?
According to statements from Staking Rewards on their own report and reports from JPMorgan, staking currently generates $ 9 billion in revenue per year. To this end, 19 out of 20 smart contract platforms are already based on some form of PoS. Meanwhile, according to statements by the Website, Solana the cryptocurrency with the largest staked share.
In the future, the second largest cryptocurrency by market capitalization, Ethereum, is also expected to switch to PoS. This will increase the income in this area even further. This is precisely why it is all the more important for users to be able to rely on fast and trustworthy data.