Why BlockchainFX ($BFX) Might Be the Next Ethereum-Level Opportunity

The post Let insiders trade – Blockworks appeared on BitcoinEthereumNews.com. This is a segment from The Breakdown newsletter. To read more editions, subscribe ​​“The most valuable commodity I know of is information.” — Gordon Gekko, Wall Street Ten months ago, FBI agents raided Shayne Coplan’s Manhattan apartment, ostensibly in search of evidence that the prediction market he founded, Polymarket, had illegally allowed US residents to place bets on the US election. Two weeks ago, the CFTC gave Polymarket the green light to allow those very same US residents to place bets on whatever they like. This is quite the turn of events — and it’s not just about elections or politics. With its US government seal of approval in hand, Polymarket is reportedly raising capital at a valuation of $9 billion — a reflection of the growing belief that prediction markets will be used for much more than betting on elections once every four years. Instead, proponents say prediction markets can provide a real service to the world by providing it with better information about nearly everything. I think they might, too — but only if insiders are free to participate. Yesterday, for example, Polymarket announced new betting markets on company earnings reports, with a promise that it would improve the information that investors have to work with.  Instead of waiting three months to find out how a company is faring, investors could simply watch the odds on Polymarket.  If the probability of an earnings beat is rising, for example, investors would know at a glance that things are going well. But that will only happen if enough of the people betting actually know how things are going. Relying on the wisdom of crowds to magically discern how a business is doing won’t add much incremental knowledge to the world; everyone’s guesses are unlikely to average out to the truth. If…

BitcoinWorld Phenomenal Mercor Funding: AI Model Training Platform Achieves $10B Valuation In the rapidly evolving world where innovation often dictates market sentiment, the recent news surrounding Mercor has sent ripples through the global tech and investment communities. For those attuned to the disruptive potential of technology, much like the early adopters of cryptocurrency, Mercor’s latest financial triumph signifies more than just a successful funding round; it heralds a profound shift in how foundational AI models are developed and scaled. The Mercor valuation has quintupled, rocketing to an astonishing $10 billion, following a monumental $350 million Series C funding round. This isn’t just a win for Mercor; it’s a testament to the immense value being placed on specialized human intelligence in the age of artificial intelligence. Mercor Valuation Soars: A New Milestone in AI Funding The tech landscape is no stranger to eye-popping valuations, but Mercor’s journey stands out. The company, which specializes in connecting cutting-edge AI labs with highly specialized domain experts for training foundational AI models, has confirmed to Bitcoin World that it secured $350 million in its Series C round, pushing its valuation to a staggering $10 billion. This represents a five-fold increase from its previous Series B round, where it raised $100 million at a $2 billion valuation. The latest round saw continued strong support from its existing lead investor, Felicis Ventures, which also spearheaded the Series B. Further demonstrating investor confidence, long-standing backers Benchmark and General Catalyst participated, alongside a significant new entrant: Robinhood Ventures. This robust investor syndicate underscores the market’s conviction in Mercor’s unique value proposition and its potential for exponential growth. The whispers of this monumental round began circulating months ago. Bitcoin World reported in September that Mercor was in advanced talks with investors, aiming for a $10 billion valuation – an ambitious target that had already been revised upwards from an initial $8 billion. The company, at the time, confidently informed potential investors that it had multiple offers on the table, indicating strong demand and a competitive environment for this kind of strategic AI funding. Mercor’s Funding Journey at a Glance Round Amount Raised Valuation Lead Investor Series B $100 Million $2 Billion Felicis Ventures Series C $350 Million $10 Billion Felicis Ventures Revolutionizing AI Model Training: Mercor’s Unique Approach Mercor’s current success is rooted in its strategic evolution. The company initially began as an AI-driven hiring platform, a common enough venture in the bustling tech scene. However, recognizing a critical bottleneck in advanced AI development, Mercor swiftly pivoted. Its new, highly specialized focus is on providing companies with elite domain experts – including scientists, doctors, and lawyers – who are essential for performing sophisticated AI model training. These experts bring invaluable nuanced understanding and real-world context that even the most advanced AI models currently lack. Mercor’s business model is elegantly designed to capitalize on this demand. It charges an hourly finder’s fee and a matching rate for the work performed by its network of experts. This ensures that AI labs gain access to precisely the human intelligence they need, while Mercor benefits from facilitating these high-value connections. Furthermore, the company has been diligently building out its software infrastructure to support reinforcement learning – a crucial training methodology where an AI model’s decisions are verified or disputed, allowing it to incorporate feedback and continuously improve its performance over time. This dual approach of human expertise and advanced software infrastructure positions Mercor as a pivotal player in the AI development ecosystem. Looking ahead, Mercor has ambitious plans to expand its technological footprint, intending to eventually build a fully AI-powered recruiting marketplace. This vision suggests a future where the matching of talent to AI training needs becomes even more automated and efficient, leveraging AI to enhance the very process of building AI. The Competitive Edge: Why Mercor Leads the Tech Startup Funding Race Mercor’s fortunes have significantly risen, partly due to strategic shifts in the broader AI industry. A notable catalyst was the reported cutting of ties between leading AI labs, such as OpenAI and Google DeepMind, and data-labeling startup Scale AI. This occurred after Meta made a substantial $14 billion investment in Scale AI and hired its CEO, creating potential conflicts of interest for AI labs that rely on neutral third-party data services. This development created a vacuum that Mercor was perfectly positioned to fill, offering an alternative and specialized service that prioritized expert human input over generic data labeling. The company reportedly told investors that it is on track to hit $500 million in Annual Recurring Revenue (ARR) faster than Anysphere, the startup behind the popular AI-powered code editor Cursor. Anysphere famously reached this milestone roughly a year after launching its core product, setting a high bar for rapid growth. Mercor’s confidence in surpassing this benchmark highlights its aggressive growth trajectory and strong market fit, making it a standout in the competitive landscape of tech startup funding. Mercor’s operational scale is impressive. The startup currently pays more than $1.5 million per day to its contractors, underscoring the high volume and value of the work being performed. Its roster boasts over 30,000 experts, who are compensated generously, averaging over $85 per hour. This significant investment in its talent network ensures high-quality output for its clients and fosters a robust, attractive platform for domain specialists. Future Horizons: Expanding Mercor’s AI Ecosystem Mercor’s journey is far from over. The company articulated its vision for the future in a blog post shared with Bitcoin World, emphasizing the persistent challenges in AI development despite rapid advancements. “Since we founded Mercor almost three years ago, AI has advanced at an astonishing pace. But it still struggles with the subtleties that drive economically valuable work—balancing trade-offs, understanding intent, developing taste, and deciding what should be done, not just what can be done,” the company stated. This insight perfectly encapsulates why human experts remain indispensable in refining AI’s capabilities. With its fresh capital, Mercor is set to strategically focus on three key areas to further expand its AI ecosystem: Expanding its Talent Network: Continuously recruiting and onboarding more specialized domain experts to meet the growing demand from AI labs. Improving Matching Systems: Enhancing its algorithms and processes for effectively pairing contractors with clients, ensuring optimal skill alignment and project success. Building New Products: Developing innovative software and tools to automate more of its internal processes, streamlining operations and boosting efficiency. These initiatives are designed to solidify Mercor’s position as a leader in expert-driven AI development and to scale its operations to meet the ever-increasing needs of the global AI industry. Unlocking Potential: The Impact of Venture Capital AI Investments Mercor’s remarkable funding round is not an isolated event but rather a strong indicator of the current fervent interest in artificial intelligence from the venture capital AI community. Investors are keenly aware that AI is not just a technological trend but a foundational shift that will redefine industries, create new markets, and drive economic growth for decades to come. The willingness of top-tier VC firms like Felicis Ventures, Benchmark, General Catalyst, and Robinhood Ventures to inject hundreds of millions into Mercor speaks volumes about their belief in the company’s long-term potential and the critical role it plays in accelerating AI innovation. The influx of capital allows Mercor to invest heavily in research and development, attract top talent, and expand its global footprint. This kind of investment fuels the entire AI ecosystem, enabling more sophisticated models, more robust applications, and ultimately, more impactful AI solutions across various sectors. Mercor’s success story serves as a powerful example of how targeted venture capital can unlock immense potential in specialized tech segments, driving both technological advancement and significant financial returns. In conclusion, Mercor’s quintupled valuation and substantial Series C funding mark a pivotal moment in the AI industry. By expertly bridging the gap between cutting-edge AI models and the nuanced intelligence of human domain experts, Mercor has carved out a unique and incredibly valuable niche. Its rapid growth, strategic pivots, and ambitious future plans underscore its position as a frontrunner in the next generation of AI development. As AI continues to evolve, the demand for platforms like Mercor, which can infuse models with human-level understanding and judgment, will only intensify, making its $10 billion valuation a clear signal of its profound impact and future promise. Frequently Asked Questions (FAQs) Q1: What is Mercor and what does it do? Mercor is a tech startup that connects AI labs with highly specialized domain experts (e.g., scientists, doctors, lawyers) for training their foundational AI models. It charges an hourly finder’s fee and matching rate for their work and is also building software infrastructure for reinforcement learning. Q2: How much funding did Mercor raise in its Series C round? Mercor raised $350 million in its Series C round. Q3: What is Mercor’s current valuation after the Series C round? Mercor’s current valuation is $10 billion. Q4: Which investors participated in Mercor’s Series C round? The Series C round was led by Felicis Ventures, with participation from existing investors Benchmark and General Catalyst, and new investor Robinhood Ventures. Q5: How does Mercor differentiate itself from other data-labeling companies like Scale AI? Mercor specializes in providing highly specialized domain experts for nuanced AI model training, rather than generic data labeling. Its fortunes reportedly rose after leading AI labs like OpenAI and Google DeepMind cut ties with Scale AI after Meta invested heavily in the latter, creating a demand for Mercor’s more specialized services. Q6: What are Mercor’s future plans? Mercor plans to focus on expanding its talent network, improving its systems for matching contractors with clients, and building new products to automate more of its processes. It also intends to eventually build an AI-powered recruiting marketplace. Q7: Who is Ram Iyer? Ram Iyer is a financial and tech reporter and editor for Bitcoin World, covering M&A, equity, regulatory news, and debt markets. Q8: What is Anysphere and Cursor? Anysphere is the startup behind Cursor, an AI-powered code editor. Mercor reportedly told investors it’s on track to hit $500 million in ARR faster than Anysphere, which achieved this milestone roughly a year after launching its core product. To learn more about the latest AI market trends, explore our article on key developments shaping AI features. This post Phenomenal Mercor Funding: AI Model Training Platform Achieves $10B Valuation first appeared on BitcoinWorld.

Vitalik Buterin and Anatoly Yakovenko debate whether Ethereum’s Layer-2 networks truly ensure security and decentralization.