Starting Chainalysis: How to achieve a valuation of US$8.6 billion?
Original Source: MetaverseHub
Original Source: MetaverseHub
On May 11, Chainalysis, a blockchain data tracking platform, received a round of financing led by Singapore's sovereign wealth fund GIC, with a financing amount of US$170 million and a valuation that doubled from the previous round of financing to 8.6 billion. Dollar.
Even though the blockchain industry is experiencing a new round of winter, the valuation of Chainalysis continues to grow.According to a report released by the U.S. Federal Trade Commission,
From the beginning of 2021 to March 2022, the loss of fraud in the Crypto field exceeded 1 billion US dollars.
With the rapid development of the blockchain industry in the past two years, various security incidents have also occurred frequently, which not only threaten the security of user assets, but also have an impact on the financial system.
therefore,therefore,
In the context of the lack of effective supervision in the blockchain industry, the demand for Chainalysis from relevant companies and institutions has become increasingly strong.
And this solution is inseparable from the integration and analysis of Web3 ecological data, so what is Web3 data analysis? Through Web3 data analysis, what value does Chainalysis provide?
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What does Web3 data analysis do?
Web3 is a decentralized network. People can control their own data and assets instead of being controlled by a subject or organization. To do this requires the support of blockchain technology.Blockchain technology is a distributed decentralized database that enables the data stored in it to be distributed and stored in different nodes
, to ensure that the data cannot be tampered with, and the data in it is open, transparent and traceable.
However, under the premise of ensuring openness and fairness, the source and destination of these data are anonymous in the form of strings, which has strong privacy protection properties.
Therefore, we can obtain real transaction data and user operation data with certain privacy protection on the blockchain.
However, these data are stored in blocks in a chaotic and complex manner, and some Web3 data analysis tools are needed to process the data, so that the funds and user behavior on the chain can be analyzed without destroying the privacy of others for decision-making better judgement by stakeholders and key organizations.
Muddy Waters Research, a research company with muddy waters, previously hired more than 1,500 employees to conduct in-depth investigations on Ruixing Coffee, and finally released a short report of nearly 90 pages. It successfully shorted Ruixing Coffee. It took a lot of effort.But in the field of Web3, such business data are real and open and transparent on the blockchain
, everyone can intuitively understand the real situation of each project, and the project company can't play tricks on the data. Instead, it will force them to spend more attention on running the project itself.
Therefore, the blockchain is also known as the trusted Internet. When Web3 comes, we will also usher in a more credible world, but this also requires data companies that analyze the anonymity of the blockchain, and this also Another track was born.
How was Chainalysis born?
In 2014, the Japanese Crypto exchange Mt. Gox was revealed to have been hacked and declared bankruptcy after losing 850,000 bitcoins (approximately $5 billion at the time).
According to reports, Mt. Gox carried nearly 70% of the global Bitcoin transaction volume at that time. The industry is indeed full of opportunities, but it is often accompanied by huge risks.As an early symbolic risk event in the blockchain industry, the Mt. Gox thunderstorm not only caused users to worry about asset security, but also inspired a new idea of Michael Gronager:
For Crypto to gain widespread adoption, it needs to be regulated.
In October of the same year, Michael Gronager, the former COO of the Crypto exchange, and his partners jointly founded the blockchain data tracking platform Chainalysis, and then became an official investigator of the Mt. Gox case, helping the U.S. government to locate some of the stolen bitcoins.
The main business of Chainalysis at the beginning of its establishment includes helping customers comply with compliance requirements and assessing risks; providing bitcoin transaction analysis software; identifying illegal activities, etc., and its service targets include governments, financial institutions, Crypto exchanges, etc.
In 2015, Chainalysis signed a contract with the FBI to win its first business, with a contract amount of only $9,000. That is, in this year, Chainalysis completed its first financing led by Techstars.
up to now,up to now,
Chainalysis has completed 10 rounds of financing since its inception, raising a total of more than $536 million in funding.
It can be seen that Chainalysis financing is gradually growing exponentially, and at the same time, its business territory is also further expanding.
On the track of blockchain data analysis, Chainalysis has made great progress. With the launch and application of its core products, this brand new financial system will be well supervised.
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Earlier we talked about the birth and development of Chainalysis, so what is the magical power of Chainalysis that can become a unicorn company within a few years of its establishment. Let’s start with its core business and dismantle it for everyone.
Chainalysis Business Data
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Chainalysis Business Data provides additional customer information for blockchain-related businesses, helping users better understand customers, customize products and tap new sources of income.By converting customer behavior data on the chain into intuitive data charts,
Chainalysis Business Data helps inform organizational decision making to optimize market development and improve customer experience.
The data provided by Chainalysis Business Data is updated in real time, so that users can understand the feedback of the adjustments made, so as to obtain more valuable business strategies.
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Chainalysis KYT (full name Know Your Transaction)
Traditional finance has a KYC (Know your customer) policy, that is, to fully understand your customers and strengthen the review of account holders, which is the institutional basis for anti-money laundering to prevent corruption, and to understand the legality of the source of funds.
However, in the field of blockchain, due to the particularity of blockchain, some tools are needed to have a clearer understanding of the fund situation.Based on such needs,
Chainalysis KYT came into being and provides multiple functions around data-related security and risks:
KYT is powered by the best data in the industry, mapping hundreds of millions of addresses to real-world entities.
KYT detects high-risk activities, enables continuous transaction monitoring of Crypto assets, and can configure real-time alerts based on the organization's AML strategy.
KYT comprehensively monitors all addresses controlled by entities to obtain real-time intelligence on the source or destination of their funds, enabling users to securely access Crypto assets (including NFT).
KYT provides users with alerts of unknown risks and improves the accuracy of alerts with a hybrid approach of using traditional rules with behavior-based alerts, helping users optimize the detection of more complex patterns.
Chainalysis Kryptos
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Chainalysis Kryptos is based on the industry's most trusted blockchain data to provide in-depth on-chain indicators of Crypto business.
Chainalysis provides more than 6,500 unique services and monitors hundreds of millions of blockchain addresses that transfer over $6 trillion in value.
Kryptos uses the industry's most comprehensive data set to understand entities' on-chain behavior and compile service profiles, using data trusted by regulators and law enforcement to inform the due diligence process.Chainalysis data is trusted globally by law enforcement, regulators, exchanges and financial institutions.
Chainalysis Reactor
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As we said earlier, blockchain-related addresses have greater anonymity, so such tools are needed to facilitate certain organizations to monitor blockchain addresses.
Secondly,Secondly,Reactor also provides an identifier-based search service
, you only need to enter some blockchain addresses to know which entity controls the wallet and find the associated address, which means that the movement of some funds can also be traced through this tool.
In addition, Reactor also provides some economic behavior dynamics, including custom records, annotations, and building user behavior files, so that investigators can share charts or export raw data records.Reactor is almost a special service tool born for Web3 using blockchain as the underlying technology, and it is also just needed by some institutions and regulatory organizations.
Chainalysis Market Intel
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"Market Intel" is a data-driven portal website launched by Chainalysis. The website utilizes various data accumulated by Chainalysis in the industry over the past few years to generate real-time data and use of Crypto, and provide insights into the operation and growth of the Crypto market.Compared with the previous tool products,
It is precisely because Chainalysis provides the above-mentioned effective tools or products that it has attracted 700 companies/organizations in 70 countries/regions around the world. We believe that with the development of the Web3 industry, this number will continue to grow .
What is the significance of Web3 data analysis to the development of the industry?
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As an asset as precious as oil in the 21st century, data has received unprecedented attention today.
On the one hand, the concept of returning data ownership to Web3 has been welcomed by more and more organizations and individuals.On the other hand, the native blockchain application of Web3 also has some anonymity problems
, so organizations like Chainalysis are needed to assist real-world regulators in their review.
Therefore, the logic is that on the one hand, we need more secure and reliable Web3 applications to meet our vision of data protection.
On the other hand, we cannot have completely "black box" data. After all, what is stored in this "black box" and whether it will threaten the information security of more people has become a concern for many decision makers.
The background of the birth of Chainalysis is to see the unique problems of the blockchain industry, but in the early days, this problem was mainly about monitoring the whereabouts of Crypto flows.Now it has become a third-party platform that the entire blockchain or Web3 industry urgently needs
, which is why the valuation of Chainalysis can be so high and it is favored by many institutions.
Perhaps in the current development of Web3, Chainalysis can become the "fan soft" of on-chain data analysis, which is also an institution needed by the ecological niche.
at the same time,at the same time,
For Web3, one or more good data analysis companies can not only regulate the development of the industry, but also bring empowerment to the industry. This is also a win-win opportunity.
