Security Concerns Lead Crypto.com – Chainalysis Partnership
Chainalysis is set to provide a number of data analysis security services for Crypto.com’s Crypto.org Chain on an ongoing basis after its launch next week.
Know Your Security
Cryptocurrency exchange Crypto.com revealed in a press release its plans to collaborate with blockchain analyst Chainalysis. The collaboration aims to support the integration of CRO – Crypto.com’s native token – with the exchange’s own network. They point out that security issues are at the heart of the partnership.
According to the press release, the partnership will “bolster the security of the Crypto.org network”, making use of Chainalysis’ tools and skillset.
These tools include Chainalysis’ “industry-leading” risk management software which is primarily used by authorities to monitor on-chain criminal activity. This is especially important as the frequency of hacks increases.
The collaboration will also use Chainalysis KYT, a tool built specifically for transaction monitoring in the context of compliance.
Chainalysis KYT includes an easy-to-use interface, a real-time API for calling transaction data and several blockchain intelligence generating tools.
Commenting on the collaboration, Crypto.com’s Chief Compliance Officer, Antonio Alvarez, said:
“Keeping user accounts and assets safe has always been a top priority for Crypto.com. We’re proud to partner with Chainalysis – together we will identify high-risk attack points implementing best practices through improvements in innovative technology. ”Antonio Alvarez – Chief Compliance Officer – Crypto.com
Indeed,the company is on a product development spree. It is seeing demand for cryptocurrencies surge. Security measures aside, this is a busy time for the it.
Shortly after announcing the Chainalysis partnership, thecompany revealed its lending services now included Cardano (ADA) and Stellar Lumens (XLM). Both cryptocurrency projects have seen their native tokens’ prices explode in the past few months.
A key factor in that price explosion is the addition of ADA and XLM to investment products such as Grayscale Investments’ Trusts.
These trusts provide a vehicle for institutional investors like MicroStrategy to easily invest in the altcoin market.
Moreover, Crypto.com is also capitalizing on the increased interest in the space from payments giants like Visa and Mastercard. Just last week, the cryptocurrency exchange announced a partnership in principle with Visa.
This collaboration will allow the company’s Visa Card to expand its reach to a number of regions where interest for cryptocurrencies is surging.
Will CEXs Or DEXs Win The Race?
As demand for cryptocurrencies surges, there is a race between centralized (CEXs) and decentralized (DEXs) exchanges to provide trading services.
Other top CEXs like Binance and Coinbase are moving ahead with a number of product launches. These range from Binance’s own decentralized network to Coinbase’s custody services.
At the same time, decentralized finance (DeFi) projects like Uniswap and SushiSwap are seeing the number of DEX users rise as the market becomes more aware of their presence.
Those DeFi enthusiasts believe DEXs will be the future of all exchanges in the place. As their number rises, CEXs are competing to maintain their own user growth rate. However, both sides know that security will be a deciding factor.