Home
News
Crooks in this day and age will surely look for ways to earn big bucks at the expense of unknowing victims. Blockchain itself is no exception as these individuals are eyeing nonfungible tokens (NFTs) to launder money. That said, the NFT company of Dapper Labs is teaming up with the blockchain intelligence firm Chainalysis.
Reports noted that the former will be utilizing the latter’s insights to have a clearer picture of every transaction that users make with their products, alongside the motive behind it. Through this, it will facilitate the detection of money laundering instances and the attempts in manipulating the market.
Dapper Labs x Chainalysis
Dapper Labs’ Associate Director of Compliance Naeem Bawla stated that nonfungible tokens are one of the most exciting spaces in cryptocurrency. The Dapper executive pointed out that NFTs will only be successful in the long term if they can ensure a safe environment for their customers. The associate director went on to express how thrilled they are to pair up with Chainalysis to keep shady individuals off their platform, battle money laundering, and remain on top of the ever-evolving local and global regulatory and compliance space.
ALSO READ – CRYPTO PRICES AND INFLATION ARE NOT CORRELATED ACCORDING TO THE CHAINALYSIS DATA
Chainalysis tools
The said NFT firm will be applying two different Chainalysis tools. The first one’s dubbed as Chainalysis KYT (Know Your Transaction) in which the firm claims that it can mark out risky and illegal transactions, not to mention that it’s done in real-time and alerts Dapper Labs of any illegal acts that are taking place. The other tool is called Chainalysis Reactor as this will enable Dapper to make inquiries about any transaction and later on launch an investigation about it.
Reports suggest that this recent deal between Dapper Labs and Chainalysis comes on the heels of the former revealing a $250 million funding round at a valuation amounting to $7.6 billion in September.
The art-based NFT hype as of late is somewhat similar to other previous blockchain token crazes in which a majority of them are hastily made and of low quality, but are being sold for insane amounts of money. Albeit being introduced as a novelty, this NFT hype is driven by the same HODL and pump and dump urges of individuals that have driven altcoins, ICOs, and even bitcoin (BTC) itself.
Buyers of this digital art are either hoping that they could attention to it or sell it to another enthusiast later on. However, cryptocurrency pundits believe that some of it could also be connected to money laundering, Coingeek writes.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
