Sei Foundation Eyes Acquisition of Bankrupt 23andMe to Secure Genetic Data on the Blockchain

Sei (SEI), the native token of the layer-1 blockchain, is currently trading around $0.2, down by over 5% in the last 24 hours amidst a broader market correction.

The native token of layer-1 blockchain Sei (CRYPTO: SEI) is currently trading around $0.2, down by over 5% in the last 24 hours as the broader market continues to see some selling pressure.

However, the cryptocurrency briefly saw a positive price reaction earlier today after the Sei Foundation announced it is exploring the acquisition of genetic testing company 23andMe (NASDAQ:ME), which recently filed for bankruptcy.

What Happened: The non-profit group supporting the Sei network said on X (formerly Twitter) that it is interested in buying the consumer genomics company. This comes after 23andMe announced its Chapter 11 bankruptcy on March 23.

The move would see an enormous quantity of corporate data being moved onto the Sei blockchain as the Foundation stated its goal is to “defend the genetic privacy of 15 million Americans.”

According to the report by Blockworks, the Sei Foundation’s plan will see them uploading all of 23andMe’s genetic data onto the blockchain should the purchase be completed. The next stage will be devising a method to “return data ownership to users through encrypted, confidential transfers.”

The Foundation believes this strategy will leave people in control of their genomic data, allowing them to decide how it is used and potentially sold.

“We believe user data sovereignty is a matter of national security,” the Sei Network added in its own statement.

It continues: “An American biotech pioneer is going bankrupt, exposing the personal genomic data of millions to entities who may not share the same values of openness and honest access.”

This comment highlights the Foundation’s belief that blockchain technology provides a strong means of safeguarding private data.

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What Implies: Following the news, SEI had a small spike, increasing around 3% from about $0.209 to $0.215. This rapid positive response showcases how the market perceives the potential significance of this action for the Sei network, and broader move into Decentralized Science (DeSci). However, these gains have since been somewhat negated as the broader crypto market slid further.

In an era where businesses sit on vast amounts of personal genetic data, the Chapter 11 bankruptcy filing by 23andMe has sparked discussion about data privacy. Pointing out the importance of individuals having rights to their own DNA samples and how they are used, some state attorneys general advised 23and Me users to take action to delete their personal data from the platform following the announcement.

The move by the Sei Foundation to potentially acquire 23andMe is part of a broader effort by the group to support startups building in the DeSci sector on the layer-1. Earlier this year, the foundation announced a $65 million venture capital fund to help entrepreneurs.

The aim of the integration of 23andMe’s data is to highlight the transformative capabilities of Web3 infrastructure in revolutionizing scientific processes. Ultimately, the goal is to make data more accessible, and leave it in the hands of the people it pertains to.