Why CrunchSpark was Founded

The inspiration for CrunchSpark came from the need to solve common challenges in the crypto world - accounting, reporting, and data analytics for high volume transactions of complex digital assets.

7 August 2023
Why CrunchSpark was Founded

The inspiration for CrunchSpark came from the need to solve very common challenges in the crypto world- accounting, reporting and data analytics for high volume transactions of complex digital assets.

In a world of bored apes NFTs and virtual yachts, comparatively dull finance issues that form the foundations of good governance and standards required for mainstream adoption of crypto are often overlooked.

There is no doubt that the industry is highly speculative at this stage.Bored Ape Yacht ClubA clear polarisation of opinions has emerged, from cheerleaders who have drunk the cool aid of decentralisation to naysayers who argue it’s all a scam built on pyramid shaped economics.

We try to understand the arguments from both sides, but most concepts are not black or white.

We are finance practitioners who believe in the potential of Web3.  This doesn’t mean we think every idea makes sense, nor is our position driven by politics, economics or technical ambitions.  Instead we focus on facts and practical needs.

  • The fact is trillions of dollars of digital assets have been created and now co-exist within the traditional financial system, yet many financial processes remain manual and fragmented.
  • The fact is accounting of digital assets transactions is really (really) painful as anyone who has stared at a colourful spread sheet for long enough can attest to.
  • The fact is accounting standards and regulations relating to the industry remain a work in progress.
  • The fact is investors in crypto projects often lack access to audited financial statements taken for granted by most shareholders of listed businesses.
  • The fact is there are many scams and many genuine Web3 projects trying to do the right thing.

Yes the Web3 industry is full of contradictions, but it’s happening and evolving.

How can institutional investors fully engage in this nascent sector without the proper infrastructure and frameworks to give them a true and fair view of these businesses?

In 2004, I joined the hedge fund accounting team at JP Morgan after leaving Deloitte.  It was mind boggling then that the systems at a bulge bracket bank were still based on mainframe architecture built in the 1970s.

It’s even crazier that 20 years later, when in senior finance and operational roles at fast growing blockchain businesses, I found the same CSVs and spread sheet driven processes still being used.

Such businesses have grown from humble beginnings into multi billion companies in a very short period of time, to become early leaders in digital asset exchanges, blockchain gaming, NFTs, the metaverse, digital identity and Web3.  Yet their finance functions need to catch up.

Having worked in both traditional finance and high growth crypto businesses, I can appreciate the need for the higher standards required of regulated entities but with a balanced approach to avoid stifling innovation.

I can also relate to the many challenges that Web3 companies face.

Covid-19 played a big part in accelerating the adoption of remote working practices, going hand in hand with the decentralised ethos of blockchain.

It made sense to build a network of finance professionals to support fast growing Web3 businesses, to develop software that automates convoluted manual processes, and be part of the journey to legitimise Web3 and realise its potential.