Chainalysis, a New York based startup that investigates Blockchain transactions, stated that it had raised US$100 million from investors. The cash boost will boost the valuation of the startup to above US$2 billion.
Chainalysis is one of the most prominent agencies in the United States that investigates crimes related to cryptocurrencies. The startup helps government agencies and companies to evaluate different blockchain transactions. This company has recently received a $100 million cash injection from investors totaling its valuation to US$2 billion. The Series D Round of funding was spearheaded by Paradigm, which is an investment firm. Other contributors included Ribbit, TIME Ventures, etc.
How will the cash injection help?
This extra funding will be instrumental to providing business data solutions in Blockchain matters. The data that will be provided to these companies will be crucial to helping cryptocurrency agencies, financial institutions and government agencies to receive credible data that will help alleviate crimes that are related to cryptocurrencies.
The Chief Executive of the Company and the Co-founder of the firm, Michael Gronager, stated that with the new funding, the firm would invest more in their investigations and build better compliance software. This move will be beneficial to the existing customers and new customers. Michael also hinted that with the cash injection, the company will look more towards international expansion.
What this means for the Crypto market
The cryptocurrency market has undergone a great boom over the years. More startups are investing in the crypto market as they launch new products and services that will see the extra growth of this sector. The funding therefore comes at a critical time when Chainalysis will need to invest more to meet the needs of this growing market.
The expansion of the crypto market also calls for Chainalysis to upgrade their technology to meet the heightened demand for their services. Through better technology, Chainalysis can help private enterprises and government sectors to evaluate transactions and identify any fraudulent dealings such as fraud and money laundering.
Chainalysis growth in the crypto market is evident through the doubling of their client base in the past year. They have also expanded their workforce by hiring an additional 116 employees to meet the needs of their rapidly growing customer base. Currently, this company deals with 100 cryptocurrencies and this accounts for 90% of the total financial activity in the virtual crypto market.