Blockchain intelligence and surveillance firm Chainalysis announced that it has raised $ 100 million in Series E funding from investors including Coatue, Benchmark, Accel, Addition, Dragoneer, Sequoia Heritage and SVB Capital. The funding increases the company’s valuation to $ 4.2 billion and aims to expand its resources and deepen the data to cover more cryptocurrencies and focus on use cases like decentralized funding (defi).
Chainalysis Raises $ 100 Million, Blockchain Intelligence Company Now Valuation Over $ 4 Billion
The blockchain developed by Satoshi is a transparent ledger and transactions can be traced back to the Genesis block. However, this does not necessarily mean that an individual can accurately determine the identity of the person or organization behind a cryptocurrency transaction.
Still, this data helps an investigator get closer to that answer. There was no blockchain surveillance in the early days of Bitcoin, but a few years after the network effect gained momentum it became much more common.
There are now over two dozen blockchain intelligence and surveillance companies, and over the years these companies have increased the stakes by monitoring dozens of blockchains alongside Bitcoin. They have also raised millions of dollars from investors and government contracts.
On June 24th, Chainalysis announced that it had raised $ 100 million from investors and plans to expand operations significantly. Chainalysis was launched in 2013 and the company provides blockchain data to governments, institutions and stock exchanges in over 60 countries. The company’s $ 100 million rating brings Chainalysis to a valuation of $ 4.2 billion. The Series E funding round was led by Coatue.
Series E follows the $ 100 million Series D round that the company launched in March 2021, and the funds will be used to expand services across the board. The announcement mentions three expansion concentrations that contain in-depth data. This would mean monitoring more cryptocurrencies and focusing on defi. Software is next on the list as Chainalysis aims to develop software solutions for both the public and private sectors.
Finally, Chainalysis said that by using APIs it would provide more access so “government agencies, financial institutions and cryptocurrency exchanges” can leverage the company’s data. The company faces competition from well-known blockchain intelligence firms like Ciphertrace and Elliptic.
Other companies involved in analytics and blockchain monitoring include organizations such as Sixgill, Tibco, Credits, Crystal Blockchain, Dune Analytics, Madana, Bitrank, Ocyan, Alethio, Bison Trails, Blockpit, Blockmonitor, Bloxy, Postchain, and Scoreshain. Chainalysis Series D and E rounds bring the company’s total amount to $ 365 million.
Blockchain analytics is big business worldwide, and governments and law enforcement agencies have paid big bucks for these services. Between Chainalysis and Ciphertrace alone, it was estimated that more than 80% of existing cryptocurrencies were tracked by blockchain monitoring in 2019.
What do you think of blockchain surveillance firm Chainalysis raising $ 100 million? Let us know what you think on this matter in the comments below.
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