Chainalysis Decides to Cover Dogecoin

The blockchain analysis company Chainalysis announced that it is going to cover the the world's premiere memecoin, Dogecoin (DOGE).

In the official announcement, Chainalysis noted that although considered nothing more than a light-hearted joke, Dogecoin has become one of the world's most popular crypto assets, thanks in part to people with large audiences, like Elon Musk and Mark Cuban, and online communities like Reddit's r/wallstreetbets, that have outed Dogecoin as a high-growth investment opportunity. As of August 9, 2021, Dogecoin has the fourth largest 30-day trading volume of all cryptocurrencies, with over $199 billion worth of transfers. 

Chainalysis also explained why Chainalysis' DOGE coverage is good news for the continued global adoption of digital assets. With Dogecoin becoming the 5th most traded cryptocurrency overall of 2021 thus far, its growing popularity has naturally led to increased usage of Dogecoin for criminal activity. Chainalysis mentioned the giveaway scam in May when cybercriminals took advantage of Musk's appearance on Saturday Night Live to launch such fraudulent giveaway campaign via Twitter. Hackers reportedly netted around $100,000 in Bitcoin (BTC), Ethereum (ETH), and Dogecoin. Unfortunately, victims fell prey to the scam by sending small amounts of the crypto, as the fraudsters promised to return ten times the amount invested in the giveaway.

Therefore, Chainalysis stated in the press release, Dogecoin has become the most frequently requested new coin for Chainalysis to cover from its customers in both the public and private sectors.  

The announcement comes after Fazzaco's report that Chainalysis completed $100 million funding in its latest round​ led by an investment company Coatue, bringing its valuation to $4.2 billion.