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Tether’s Transparency Praised by CEO of Crypto Investigation Firm Chainalysis

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Tue, 02/12/2019 - 17:00
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  • Michael Gronager, the CEO of Chainalysis, claims that they failed to detect anything alarming about Tether

Cover image via U.Today
Contents

Chainalysis, the Blockchain analysis startup that provides valuable insights into the industry, has notched $30 mln during its Series B funding round. In his interview with Fortune, Chainalysis CEO Michael Gronager emphasized the importance of dollar-pegged stablecoins for the cryptocurrency industry, praising Tether for having ‘quite good’ transparency.

Michael Gronager

The stablecoin effect

Stablecoins, according to Gronager, are emerging as a new major trade after the great ICO bubble eventually popped. Gronager claims that he’s ‘confident’ in the majority of fiat-backed cryptocurrencies, including the flagship stablecoin — Tether (USDT). U.Today reminds that the flagship stablecoin has been placed under scrutiny after a controversial report about how USDT was used to manipulate the Bitcoin price. There are a lot of speculations whether or not Tether is backed by sufficient USD reserves.

Must Read
Bloomberg Confirms Tether Ltd Has Enough Dollars to Back USDT - READ MORE

The rise to prominence   

Back in April 2018, Chainalysis wrapped up its Series A funding round, raising $16 mln. The company developers software that allows government and law enforcement to monitor Bitcoin transactions. Chainalysis, which was founded back in 2014, appeared in the limelight after cooperating with law enforcement on the Mt Gox investigation.

Apart from Bitcoin, they started adding a slew of new coins. When it comes Zcash and Monero, Gronager can do very little about them, but the pace of their adoption is way too slow to be concerned.         

Prioritizing long-term growth

Now, according to the company’s CEO, they mainly rely on corporate clients. However, they are still not able to generate profit, currently focusing on the build-out instead. The Blockchain sleuth will reportedly use the raised funds to open a new London-based office.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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