Israeli startup Solidus Labs works to fight manipulations in cryptocurrency trading. The company raised $20 million in a Series A round led by Evolution Equity Partners and included Hanaco Ventures, which led the startup’s $3.75 million seed round in early 2019.
Now that cryptos are so popular people need to be concerned with how to secure it. One of the biggest criticisms of cryptos like Bitcoin is that people cannot not be sure that their money is really safe since it is not stored in a real bank. So this is where firms like Solidus come in. Other Startup Nation companies that work to protect investments in cryptos include Fireblocks, which states that its tech streamlines operations by bringing a user’s exchanges, OTCs, counterparties, hot wallets, and custodians into one platform. Israel’s Curv, which offers a cloud based platform for securely managing cryptocurrencies, was just bought out by PayPal for more than $200 million. Israeli startup Aqua Security and Axonius, an Israeli cybersecurity startup, both recently hit unicorn status valuations above $1 billion.
A major problem with Bitcoin and the rest is that they can be easily manipulated. One way to manipulate cryptocurrencies is called “Painting the Tape.” Investopedia explains that Painting the tape is a form of market manipulation whereby market players attempt to influence the price of a security by buying and selling it among themselves to create the appearance of substantial trading activity. The goal of painting the tape is to create the illusion of an increased interest in a stock to trick investors into buying shares, which would drive the price higher.
Since cryptos are not formally regulated it is quite easy for people to get away with doing just that, whereas doing so with stocks would set off alarm bells and SEC investigations.
Just look at what just happened to Bitcoin. And major players like Mark Cuban and Elon Musk seem to be able to manipulate their value just by agreeing to accept them as payment for their respective companies’ services. And there is no way to know how much they themselves make off of cryptos since they are not regulated and subject to SEC oversight.
“The agency brought 75 enforcement actions, ordered 19 trading suspensions, and issued numerous statements… As of early March, the SEC settled 70% of actions for more than $1.77 billion in total monetary penalties.” #cryptoregulation #cryptointegrityhttps://t.co/9x1F08GP8s
— Solidus Labs (@Solidus_Labs) May 17, 2021
Founded in 2017 by CEO Asaf Meir, COO Chen Arad and CTO Praveen Kumar, Solidus Labs says that it is a team of finance veterans on a mission to enable safe and regulated crypto markets through tailored compliance and risk monitoring solutions. Solidus Labs boasts the first crypto-native, comprehensive, automated and testable market surveillance and risk monitoring hub tailored for digital assets. Crypto businesses globally rely on Solidus’ solutions in order to apply for licensing, attract institutional investors, protect their users and grow faster – and safer.
Asaf Meir said, “Crypto and digital assets aren’t just transforming financial services, they’re also driving a major transformation in how capital markets, and finance as a whole, will be regulated. As both innovators and regulators strive to harness these new technologies and make finance more accessible, transparent and efficient, crypto has also exposed the soft underbelly of legacy risk monitoring solutions, which Solidus Labs addresses.”