VeryAI secured $10 million in funding led by Polychain Capital to develop a palm-scan identity verification system built on Solana blockchain. The startup's biometric technology uses smartphone cameras to authenticate users and help crypto platforms identify AI-generated bot accounts, addressing growing concerns about automated account creation in DeFi protocols.
The system leverages Solana's high-throughput blockchain to process biometric verifications onchain while maintaining user privacy through cryptographic proofs. This approach could provide crypto exchanges and DeFi platforms with a scalable solution to combat sybil attacks and fake account proliferation that have plagued airdrops and governance tokens.
The funding comes as regulators increasingly scrutinize identity verification in crypto, with the EU's Markets in Crypto-Assets (MiCA) regulation requiring enhanced KYC procedures. VeryAI's privacy-preserving approach could help platforms comply with emerging regulations while maintaining pseudonymous user experiences that crypto users prefer.
Solana's ecosystem has seen renewed institutional interest following its recovery from the FTX collapse, with the SOL token trading around $200 and a market cap exceeding $95 billion. The blockchain's focus on mobile-first applications and low transaction costs makes it attractive for consumer-facing biometric applications.
The raise reflects growing venture interest in crypto identity solutions, competing with established players like Worldcoin's iris-scanning technology and Civic's traditional KYC services. However, adoption will depend on user acceptance of biometric data collection in the traditionally privacy-focused crypto space.