Crypto Giant Coinbase executives raise $5 million in investment to launch a Web3 platform
The former heads of Coinbase, Karthik Kalyanaraman and Ola Muse, left the crypto exchange in August. Within two months of quitting, they have developed an infrastructure startup called Scale3 Labs. The firm is based on Web 3 innovations and aims to support blockchain node operators.
Their progress shows that the founders have completed a seed round of funding. According to a source, Redpoint Ventures led the fundraising process that generated around $5.3 million. Other participants in the round include Howard University and Mysten Labs.
Scale3 has started operating and the first blockchain network to be supported is the Sui ecosystem of Mysten Labs. The company has expansion plans for other networks in the last quarter of the year.
Functionality and benefits of new Scale3 Labs
As a Web 3 infrastructure company, Scale3 Labs creates developer tools using open source software of exceptional quality. The starting point is the monitoring and observability technology stack for networks and nodes.
It has rolled out its first product known as Autopilot, which will help automate and streamline various operations in blockchain nodes.
The open source tool from the company offers node operators simplicity and functionality in several processes. These include community intelligence and node and network telemetry. It will also ensure unique insight into the ecosystem on the dashboard.
Kalyanaraman, CTO of Scale3, noted the challenges of running node infrastructure. He stated that the idea behind the firm is to release their knowledge and experience in solving these problems. He mentioned that they focus on using the best approach and specific open source tools that are cost effective for such operations in the industry.
In addition, Muse expressed his confidence in the company’s team, which boasts decades of experience in infrastructure operations. This makes them suitable to tackle associated problems in the field and provides the right tools and standards for blockchain networks and node operations.
He highlighted the time reduction benefit of using the new platform, citing that it takes operators up to eight hours to update their nodes. But Scale3 takes less than 20 minutes to complete the process.
Construction During Crypto Bear Market
In recent times, bear markets have provided several benefits for building better infrastructure and increased investment in research and development. A typical example is the crypto winter of 2022, where Web 3 venture funding increased despite the plunge in crypto prices.
At the time of writing, the crypto market was down about 0.83% on the chart. This current bearish trend has taken different turns in the last three months. However, there is still no hope for future consolidation of the value of crypto assets.
Featured image from Pixabay, Charts from TradingView.com
