Blockchain tracing platform Chainalysis announced today the execution of a bitcoin purchase through NYDIG for the firm’s balance sheet, marking an advancement of a long-standing partnership between the two companies. Despite the bullish purchase, Chainalysis is still a surveillance company acting in self-interests and against the Bitcoin ethos.
“Our expanding partnership with Chainalysis is a mutually beneficial relationship,” said Nate Conrad, NYDIG’s Head of Asset Management, in the announcement. “We are happy that they trusted our platform to safeguard their assets.”
NYDIG is a services provider for institutional investors seeking bitcoin exposure. The firm specializes in trading, execution, and custody of BTC, and has enabled Chainalysis to acquire an undisclosed amount of bitcoin for its balance sheet.
“We are thrilled to be adding Bitcoin to our corporate investment portfolio,” said Michael Gronager, co-founder and CEO at Chainalysis, per the announcement. “Our longstanding relationship with NYDIG enabled us to invest with confidence, knowing we were dealing with an industry leader.”
Chainalysis moves forward with this purchase, however the company doesn’t align very well to the true Bitcoin ethos as its business model is based on surveillance, allowing its customers to obtain information on bitcoin transactions for discrimination purposes.
Bitcoin was created to allow nearly anyone to transact money freely without needing to trust the other party. Its permissionless and decentralized monetary network empowered by proof-of-work (PoW) is a great humanitarian tool as it enables sovereignty and freedom for people facing restrictions or discrimination from the traditional financial system.
Gronager’s belief that “with any financial transaction, a level of trust and transparency is necessary” highlights how Chainalysis tries to undermine what Bitcoin was built to achieve — a trustless financial system built on open source code.
But Bitcoin is able to shine brighter when challenged, thanks to the antifragility conferred upon it by its peer-to-peer network and the PoW system.
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