Chainalysis, one of the leading blockchain intelligence companies in the world, has announced it will now cover the Dogecoin network in its reports. The company argues that dogecoin became one of the most known cryptocurrencies in the world after being promoted by Elon Musk, CEO of Tesla during this year. This, consequently, has attracted criminals to the chain, that are now enticed to use it due to its popularity.
Chainalysis Announces It Will Cover Dogecoin
The blockchain intelligence company Chainalysis announced it will now include dogecoin (DOGE), the infamous memecoin, in its upcoming reports. Dogecoin has gone from being a joke meme to becoming one of the most popular currencies in the market, moving big volumes after being promoted by Elon Musk, who has brought knowledge of it to the general audience.
This has also put dogecoin in the eyes of criminals and regulators, like internet scammers that use the image of Musk and its relationship with dogecoin to steal cryptocurrency from users. This has happened several times, with the latest scam raking in $40,000 from users that sent a number of coins expecting to get the double from Tesla’s CEO.
All of this has made dogecoin one of the most requested coins to cover from public and private sectors, that want to enhance compliance when dealing with this new asset. Now, the data-driven reports issued by the company will also include insights about the movements and origin of dogecoin (DOGE) tokens in the market.
Blockchain intelligence firms have experienced steady growth this year, as a result of governments and other organizations ramping up their tracking capabilities for certain cryptocurrency assets. Last June, Chainalysis raised $100 million in its Series E funding round, reaching a valuation of $4.2 billion. At that time, the company aimed to expand its capabilities to tracks decentralized finance linked currencies that move across decentralized exchanges.
The firm is also interested in getting monero (XMR) tracking capabilities, and it is actively investing resources to reach that goal. In fact, the company won a $1.25 million contract from the IRS to scrutinize the Monero network and second layers like Lightning Network last year. However, Chainalysis has not reported any updates in this regard. Last week, crypto compliance firm Ciphertrace reported it had developed enhanced tools to facilitate the tracking of Monero based transactions.
What do you think about Chainalysis introducing Dogecoin coverage in its reports? Tell us in the comments section below.
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