Chainalysis CEO Praises Tether’s Transparency And Raises $30 Million
The blockchain analysis startup Chainalysis raised $30 million during a Series B funding round. In a recent interview with Fortune, the CEO of the company, Michael Gronager, talked about the importance of stablecoins in the virtual currency industry.
Stablecoins are virtual currencies that have a value that does not fluctuate as much as other cryptocurrencies. One of the most popular ways to do it is by pegging it to a specific fiat currency such as the US dollar or Euro.
The most known and largest stablecoin in the market is Tether (USDT). However, this digital asset has been placed under scrutiny several times due to the way in which they handled their dollar reserves or how the coin was used to ‘manipulate’ Bitcoin’s price.
Back in April 2018, the company raised $16 million in a Series A funding round. The company was able to create software that is able to monitor Bitcoin transactions. At the same time, they have added support for other virtual currencies. However, there are some coins such as Monero (XMR) or ZCash (ZEC) that have enhanced privacy and cannot be tracked.
The product that they have created helps more than 100 financial institutions and cryptocurrency exchanges. WIth the funds gathered, they will be able to open a London office for Research and Development. Additionally, Philippe Botteri, a partner at Accel, will be joining the company’s board of directors. The intention is to also help clients vet transactions related to stablecoins.
Gronager explained that stablecoins became a source of momentum for the crypto industry. During the last year, virtual currencies have fallen from their all-time highs more than 80% or 90% in some cases.
Gronager commented about it:
“Born out of the ashes of this was the stablecoin as another way to easily and safely create tokens. This ability to trade U.S. dollars against crypto is very powerful.”
The CEO of Chainalysis said that they have confidence in the most popular stablecoin in the world. He mentioned that Tether has a “quite good” transparency and that there are no signs that could raise alarms about it.
According to the company, there is more than 4 million Bitcoin lost forever. That means that Bitcoin’s real supply is currently 17 million BTC around 20% less than is real potential supply.
There are many other stablecoins in the market, not only Tether. One of them is the USD Coin (USDC) that was launched by Circle with the intention to provide a new solution for traders and individuals that want to protect their investments against the volatility of virtual currencies.
Other stablecoins are Paxos Standard (PAX), TrueUSD (TUSD) or Gemini USD (GUSD).