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Chainalysis to Raise $100 Million at $1 Billion Valuation

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Chainalysis valuation and growth are not common in the crypto space as the $1 billion valuation is quite rare and particular for a blockchain data analytics service firm.

Blockchain analysis company Chainalysis is set to increase its valuation to $1 billion following its next scheduled Series C funding round that will come as early as next. According to a report by Forbes, the new Chainalysis funding round is set to be led by Addition, a new Venture Capital firm founded by Lee Fixel. According to Forbes, the Series C funding round which is set to raise Chainalysis valuation to $1 billion will also be backed by the firm’s early investors including Ribbit Capital, Accel, and Benchmark. 

Chainalysis has seen impressive growth in the past years and though Chainalysis Co-Founder and Chief Executive Officer Michael Gronager declined to give a snapshot of the firm’s earnings and revenues, Forbes projected that Chainalysis raised about $8 million in revenues in 2018. From Gronager’s confirmation that Chainalysis grew by 96% in the past year with earnings expected to double by 2021, Chainalysis is undoubtedly in a good place to turn a profit for its investors.

Chainalysis’s presence in the crypto space has been marked by the offering of data analytic services that helps to track fraudulent transactions bordering around cryptocurrencies. In describing its services, Chainalysis noted that it “provides compliance and investigation software to the world’s leading banks, businesses, and governments,” adding that its “experts in financial crime and blockchain analysis empower customers to derive insights they can act on.”

This bogus data analytics provision has drawn clients including the likes of payment service giant Square Inc (NYSE: SQ), and numerous government agencies. To date, Chainalysis clients have risen by 65% in the past year, and the firm’s 300 client base feature about 250 from the private sector and US government agencies accounting for about 30 according to Forbes.

“We’ve really shown that, that it’s possible to build a world-class business to business software as a service company by serving data in the crypto space,” says Gronager. “And really owning the data part of crypto,” which it is serving to its clients.

Chainalysis Valuation: Tale of Value and Expertise

Chainalysis valuation and growth are not common in the crypto space as the $1 billion valuation is quite rare and particular for a blockchain data analytics service firm. The impressive valuation Chainalysis is recording today takes deep roots from its role in serving value with its offerings.

As Coinspeaker reported back in August, Chainalysis published a report stating that investors moved about $50 billion in cryptocurrencies to avoid Beijing rules. Such reports help reveal the exact state of events in order to help appropriate actors know what to do, consolidating its transparency role in the space. Experts believe that with a greater level of transparency, the crypto sphere can draw more institutional adopters following the likes of MicroStrategy Incorporated (NASDAQ: MSTR) amongst others.

The brain behind the Chainalysis project, Michael Gronager, and Jonathan Levin is not just driven to use their expertise to drive the business and its offerings, they are also set to use the funds from this funding round to expand their staff, to include more developers.

“The way you make things scale today in a compliance department is not by adding ten people,” Gronager says. “But it’s by adding one developer.”

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.



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Coinbase CEO Brian Armstrong Shares Concerns on Rumoured New US Crypto Regulation

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Coinbase CEO Brian Armstrong also explained the reverse effects of the rumored regulation.

The CEO of digital currency exchange platform Coinbase Brian Armstrong expressed his opinion on the rumors that the US Treasury may implement unfavorable regulation on the crypto industry. Armstrong highlighted the details of the rumored regulation in a Twitter thread.

Already, the CEO said Coinbase, along with other crypto companies and investors, have contacted the US Treasury regarding the matter.

On the 25th of November, Armstrong shared his concerns on the proposed regulation.

He noted that the new regulation may affect non-custodial wallets which allow crypto holders to store and use their digital assets without relying on a third party. If the rumors are true, the CEO said financial institutions will begin to verify the owner of a self custodial wallet. After then, the institution would need to gather information on the individual. The institution will only approve and send withdrawals after verifying identity of the owner of the self-custodial wallet.

Although the new process appears proper and secured, Armstrong said it is a bad idea practically. He said it is mostly “impractical” for financial institutions, like Coinbase, to garner information on recipient identity in the crypto economy. Stating that several crypto users pay for good and services online using digital currencies, he asked:

“Does it make sense to require customers to help verify the identity of a business before they can buy a product there?”

The CEO highlighted other reasons that make the rumors regulation impractical. He said that some crypto users may not even own any government-issued identification cards or permanent addresses. Hence, it would be difficult to verify their identities.

In addition, he said the new regulation may be intruding on people’s financial privacy. He said the rule may be unfavorable to crypto holders who are limiting the information they disclose on their companies.

Coinbase CEO Explained Possible Effects of US Treasury Rumored Regulation

In his Twitter thread, Brian Armstrong also explained the reverse effects of the rumored regulation, if true. He said if the US Treasury passes the rule, it may result in a reduced number of transactions from crypto financial institutions to self-custodial wallets. Armstrong warned:

“This would be bad for America because it would force U.S. customers to use foreign unregulated crypto companies to get access to these services. And long term, I believe this would put America’s status as a financial hub at risk.”

He added that the rumored crypto regulation would be a terrible legacy with long-lasting adverse effects on the US.

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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.





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Polkadex Creates Decentralized P2P Trading Solutions

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Polkadex has created a fully decentralized order book that can match major exchanges in terms of speed, and also ensures that the blockchain is engaged at the optimum level for trading speed.

There is very little doubt that decentralized peer-to-peer (P2P) trading is a better solution for any kind of trading, crypto included. Polkadex is working to make a great idea work for the people that matter. When crypto was introduced, the idea was to create decentralized solutions for a digital world. From that came the desire to make profits from a volatile asset, which isn’t at all what Satoshi Nakamoto had in mind when Bitcoin was launched.

People want money, to whatever end that it may help them. Centralized exchanges grew to fill the demand for crypto trading, and this isn’t ideal for crypto holders. Polkadex understands that crypto holders want to have sovereign assets and that centralized exchanges aren’t a part of that picture.

When a crypto holder uses a centralized exchange, they have to cough up their private keys, and take that exchange on as a counterparty. Needless to say, this is a terrible situation for crypto users, and there have been numerous problems with centralized exchanges over the years. There are better options out there, and it is time to make changes happen.

Polkadex Makes It Possible

The idea of decentralized P2P trading is clearly better for traders and investors, but on a practical level, it just hasn’t been able to compete with centralized exchanges. There are a few reasons for this. Centralized exchanges tend to offer better prices, and also much deeper liquidity pools. Decentralized networks also tend to be slower, as they have to interact directly with a blockchain.

Polkadex has taken all these limitations into account, and created a fully decentralized order book that can match major exchanges in terms of speed, and also ensures that the blockchain is engaged at the optimum level for trading speed.

In fact, Polkadex’s platform has been able to achieve a speed of 200 trades per second, as opposed to Binance‘s average of 153 per second. In simple terms, this means that decentralized P2P trading has a shot at challenging centralized exchanges, and making an impact on how cryptos are traded globally.

The Point Was Decentralization

It is becoming easier to forget that the point of Bitcoin and blockchain was to create decentralized solutions for humanity. Centralized structures are failing, economies are being heavily manipulated, and the vast majority of people don’t even understand what money is.

When an economy breaks apart, people look for solutions. In a post-gold standard world, people tended to hold money from a ‘better’ economy, like the USA or Germany, but that has become an issue. These economies are also shattered, and central banks are plugging holes with trillions in fresh currency.

Moving cryptos through centralized exchanges creates some big problems. For one, they are targets for hackers and government action, which is what is happening at OKEx at the moment. These exchanges are also liquidity centers, so when they go offline, the impact on crypto prices could be severe.

According to Bloomberg, “OKEx said an unidentified staffer responsible for users’ private keys – accounts where coins are stored – has been “out of touch” while cooperating with a police investigation, the Malta-based exchange said in an Oct. 16 release. The exchange emphasized that everyone’s deposits are safe.”

In the world of centralized exchanges, users have to give up total control over their assets – which isn’t the way Bitcoin was supposed to work.

Decentralized P2P Trading Is the Solution

Polkadex has done a good job of creating a platform that embraces the ideas of decentralization, while being able to compete with centralized exchanges. It created a platform that decentralized all the blockchain writes, so that the trades can be independently verified. While the writes are decentralized, the reads are centralized, which is one of the ways that the platform is able to maintain its speed.

Being able to trade on a Decentralized P2P platform that can match the speed of a centralized exchange is great for existing traders, but the impact that zero counterparty risk trades may have is actually much larger.

More and more institutional investors are looking at the crypto world, but the companies that exist in the sector probably aren’t in-line with the counterparty regulations that professional money managers have to follow. While there is a centralized solution to this, decentralized P2P markets are a far better option for many reasons.

Making Money in the Markets

Polkadex’s platform incentives market makers with 0.1% of the trading fee, which means that crypto holders could set up trading operations that make money from the market-making, no matter which direction they are going. This position is reserved for massive banks and prop trading desks in the established markets, and there is no way a small or medium-sized company could compete, or even qualify as a market maker.

With interest rates in the fiat financial system pegged near zero, companies will be looking for new ways to earn a return on reserves. Market making on a decentralized P2P trading platform would make sense, and if set up correctly, it would offer low risk returns on a daily basis.

The simple fact is that decentralized P2P trading makes sense for so many reasons, especially if it can compete in terms of speed and price. It appears that Polkadex has created a platform that makes it possible, and could be the next big thing to hit crypto trading.

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Author: Andrey Sergeenkov

Founder and editor at BTC PEERS. Andrey writes about financial experiments, DeFi, cryptocurrency, and blockchain.



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Facebook’s Libra Networks Appoints Saumya Bhavsar as General Counsel

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James Emmett, Libra Networks Managing Director, is convinced that the expertise of Saumya Bhavsar will be crucial in launching and managing the permissioned blockchain-based payment system.

Libra Networks, a subsidiary of the Libra Association has announced the appointment of legal expert Saumya Bhavsar as General Counsel of Libra Networks. The independent member association is responsible for governing the Libra network and development of the Facebook‘s Libra project. It is overseen by an Association Council, made up of one representative from each Association Member. The Libra Network is a payment system based on blockchain technology proposed by Facebook Inc aimed at ‘supporting financial inclusion and responsible financial services innovation’.

Impressive Resume of Saumya Bhavsar – New Libra Networks General Counsel

Ms Bhavsar, whose last appointment was Managing Director, Global Head of Regulatory Affairs at The Credit Suisse Group, expressed confidence that the Libra payment system was capable of transforming the global financial system and enabling unprecedented financial and innovation and inclusion.

According to the provided information, some of Ms Bhavsar’s previous positions and tasks include:

  • 8 months at the European Commission as Internal Market and Financial Services Directorate General;
  • 8 years with the US State Department as Counsel in the Office of the Comptroller of Currency where she was the lead attorney on enforcement cases involving national banks and their officers and directors;
  • Assistant General Counsel at Euroclear. Securities Clearing and Settlement covering European, US, Latin American and Asian markets;
  • 11 years at UBS AG where some of her roles were legal and regulatory coverage of cross-border North American wealth management activities and leading discussions with US authorities on the implementation of legal and regulatory requirements;
  • 3 years at Credit Suisse leading a global team responsible for managing regulatory commitments, developing regulatory strategies and responding to various regulatory initiatives affecting business strategy.

Her experience in banking, securities, and privacy laws has significantly reduced legal, regulatory, and operational risks cemented her position as an industry-trusted advisor and strategist.

Ms Bhavsar also has extensive experience in the public sector, the most notable being, the most notable being her 8 years as a Senior Attorney in the Enforcement and Compliance division at the US Treasury Department’s Office of the Comptroller of the Currency.

No doubt, her legal expertise and vast experience in the financial sector equip Saumya Bhavsar to perform in her new role.

James Emmett, Libra Networks Managing Director, describes Ms Bhavsar as “a strategic leader with demonstrated ability and success in legal, regulatory and operational roles in one of the most highly-regulated industries’’. He is also convinced that her expertise will be crucial in launching and managing the permissioned blockchain-based payment system.

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