Sei Foundation Acquires 23andMe, Opening Up a New Era of Data Ownership

In all likelihood, the move by the Sei Foundation – the organization behind layer1 blockchain Sei – to buy bankrupt genetic data company 23andMe

Rumors have swirled about a surprising potential buyer emerging for bankrupt genetic data company 23andMe, with crypto startup Sei Foundation being mentioned as a bidder. This move, while a long-shot at best and potentially a publicity stunt, sparks an interesting conversation about the converging trends of Web2 distress and Web3 potential.

At the start of the year, 23andMe was reportedly in talks with private equity firms to sell the company for around $1 billion. However, with the company now bankrupt and creditors set to vote on a Chapter 11 plan by August 14, it remains to be seen if any bids will be forthcoming.

A report by The Block has suggested that crypto startup Sei Foundation is considering an offer for 23andMe, which would be an incredibly exciting prospect. It would see a Web3 company rescue a financially troubled Web2 company, which would have enormous ramifications in and of itself.

Web2 tech giants are already being challenged in the area of AI by much smaller, nimble, and more flexible companies, but the purchase of what was once one of Silicon Valley’s shiniest stars by a blockchain upstart would be a total paradigm shift.

Furthermore, a deal would be a win for public understanding for data security and privacy. While we have all been vaguely aware of how Meta, Google, Apple, etc., take and use our data, we have chosen to ignore that for the convenience it affords us.

Then there has perhaps never been such a case as 23andMe, which holds DNA and other data for 15 million people. It shows the public how vulnerable their most personal and intimate data is in the hands of centralized companies and organizations.

It’s one thing when Facebook and Instagram are tracking our shopping and consumer habits and making our sensitive messages and emails vulnerable to leaks. With 23andMe, we’re talking DNA data; the very fabric of our human bodies has just been green-flagged for sale to the highest bidder.

If Sei is not successful, then this data can and may well be sold to health or life insurance companies, who may then be able to use this data to potentially exclude people from vital healthcare or insurance policies, thanks to the questionable way in which the U.S. healthcare system is run and its discrimination policies enforced.

Perhaps, finally, this is a turning point at which the public may seriously come to understand the importance of owning their own data. Maybe more people will realize that to keep their data truly safe, they have full control of it themselves through the use of decentralized blockchain technology.

Of course, not every blockchain is created equal. However, Sei certainly claims to be highly secure, and projects like Arweave – which is a permanent storage chain built on a “pay one store forever” model – have applications that can allow you to upload and store your data privately, securely and permanently.

These are two among a growing list of options in our industry, but the point is this: there is simply no centralized solution beyond a piece of paper stored in a Swiss security deposit box with keys buried deep in the ground that can compare. And even then, someone can dig those keys up.

This is a watershed moment for people to understand the importance of data self-sovereignty. And it comes at a time when trust in centralized organizations, companies, and even governments is breaking down.

As such, the 23andMe sale could mark a true turning point in history, and one that could reshape how Web3 is seen, understood and utilized.