Galaxy Digital Backs Crypto Analytics With $15M
CipherTrace, a blockchain and cryptocurrency security company, has successfully raised around $15 million in funding from its investors. Interestingly, it includes the titular Galaxy Digital of Mike Novogratz.
Funding Round Success
According to the official report, the funding round was led by none other than Aspect Ventures. Among the investors included are Neotribe Ventures and WestWave Capital.
CipherTrace is all about providing analytics and/or forensics products designed specifically for digital currencies and blockchains. The company stated their products have been utilized by regulators, governments, auditors, and even the law enforcement in an attempt to enforce anti-money laundering laws and fight crimes.
By collecting a wide range of data points and utilizing machine learning for data crunching, the company states that it is capable of de-anonymizing blockchain-based transactions. At the same time, it has the ability to trace the flow of funds to legitimate entities and criminal organizations.
Aspect Ventures partner named Mark Kraynak is expected to join the CipherTrace board of directors. Basically, the decision to do so is part of the entire funding deal. Kraynak stated that he is confident that both security and regulatory compliance will be a “key first hurdle” in order to mass adopt.
The company revealed that there is a growing demand for its product. It even went to say that it would utilize the new funds in hopes of expanding internationally and, more importantly, adding a handful more features to its products.
The Growth Sector
With the reputation of cryptos for use in the criminal enterprise, it is only right for compliance and security to take a huge part in the growing segment in the digital currency space. This is most especially the case following the increasing number of investors becoming a foundational part of the industry. And as the technology continues to become more mainstream, these qualities are indeed indispensable.
Michael Gronager, the CEO and co-founder of Chainanalysis, said that the round means a continuing hunger among investors to come up with a long-term bet on the foundations of the developing cryptocurrency ecosystem. He added that both the timing and investment are pieces of evidence. And despite the current fluctuation in crypto prices, a strong conviction is still present among some of today’s massive VCs.
Even Coinbase has put an emphasis on the significance of blockchain analytics, especially with the acquisition of a company called Neutrino recently. The company did so in hopes of offering more diverse digital currency assets cross borders.