Multicoin Leads $8M Funding for Geodnet, an Alternative to Traditional GPS Systems

Multicoin, a firm specializing in cryptocurrency investments, is spearheading an $8 million acquisition of GEOD tokens, marking a significant capital infusion into the crypto venture developing a hyper-precise alternative to GPS.

Geodnet originates from the crypto industry's DePIN (Decentralized Physical Infrastructure Network) sector, which financially motivates ordinary individuals to host their own physical infrastructure. The project's token, serving as its incentive mechanism, has seen its value increase more than twofold in the past year due to the soaring demand for Geodnet's services.

GPS satellites may be sufficient for providing distance information while driving around town, but they fall short for Geodnet's clientele of farming drones and industrial robots, as explained by project leader Mike Horton. These users require location data accurate "to the size of a golf ball."

Approximately 14,000 base stations offer centimeter-level location data to Geodnet clients, many of whom are unaware of the project's crypto incentives. Anyone operating a $700 base station earns newly minted GEOD tokens, shifting the typically exorbitant cost of deploying equipment away from the company.

"Thanks to DePIN, we've been able to scale this rapidly," Horton stated. "We've accomplished in two years what the industry has been striving towards for 20 years, and we now possess twice as many stations as any other entity."

Multicoin is wagering that Geodnet's affordable, comprehensive geospatial network will aid in the exponential growth of technologies reliant on precise location data, particularly robots: autonomous vehicles, delivery drones, and self-governing farming machinery.

"For these robots to operate effectively, they need to answer a fundamental question: Where am I?," wrote Multicoin Investment Partner Shayon Sengupta in a position paper.

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Geodnet's current clientele contributes over $3 million in annual recurring revenue, according to Horton. He aims to expand the company's reach in India and South America by 2025, particularly within the agricultural sector.

The investors described the fundraising event as a "strategic" investment, in which they purchased GEOD tokens directly from the Geodnet Foundation, the organization responsible for maintaining the network. Geodnet's most recent capital raise occurred in April 2024, led by Coinfund, Pantera, and VanEck.

"We're raising the funds to concentrate on robots and drones," Horton said.

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