Blockchain company Chainalysis – which examines how people use cryptocurrency – is the first blockchain company of its kind to make Forbes’ billion-dollar startup list.
Chainalysis Has Really Made a Name for Itself
Chainalysis first entered the crypto scene roughly five years ago, though it made its official mark in the space back in 2016 when it discovered several million in BTC funds that were considered long gone following the Mt. Gox fiasco in Japan. The company ultimately found the coins and established itself as one of the leading companies designed to study and analyze blockchain trends and movements.
Founded by 29-year-old Jonathan Levin, the crypto entrepreneur accumulated over $8 million in revenue funds throughout 2018, but really hit the “big top” later with a funding round headed by companies such as Accel and Benchmark. Overall, the round garnered approximately $53 million for the company.
We’re now helping banks understand how they can build programs to allow cryptocurrency businesses to access banking services, but also make sure there’s no illicit activity going on.
One of the primary ways Chainalysis has made a name for itself is in how it’s monitored the blockchain for criminal or illicit activity. This includes theft and purchases of illegal items made through black market websites. For the most part, many world leaders – including U.S. President Donald Trump – are worried about how blockchain and cryptocurrencies can attract illicit activity.
Chainalysis examines trading platforms like crypto exchanges and checks for patterns to potentially discover crime, but the company has also released tools that allow modern banks and other financial institutions of a more traditional sense comply with present-day regulatory requirements. Many of these banks have sought to either create cryptocurrencies of their own or open cryptocurrency accounts for their customers, and Chainalysis allows these companies to potentially uncover the sources of crypto and bitcoin payments.
Unfortunately, no one remains at the top forever, and while Chainalysis is one of the original blockchain companies devoted to fighting crypto crime, many other ventures have entered the mix with competition on their minds. Among these companies include Cipher Trace, Elliptic and Crystal, which monitor illicit blockchain activity and seek to bring security to cryptocurrency platforms.
What Do Banking Companies Need?
Still, however, Chainalysis has managed to retain its level of trust within the industry, and major platforms like Barclay’s utilize its services to discover and verify new cryptocurrency firms. Levin comments:
We are spending a lot more time thinking about how corporations, social networks and financial institutions are going to be able to safely enter the space.
One can only imagine the field day the company will have once Facebook’s Libra is ready and available for use next year. At press time, the cryptocurrency is undergoing a harsh grilling by Senate members who are looking to better understand its properties, ideals and abilities to secure users’ data.