• Elementus benefits from crypto bankruptcy wave
• Blockchain monitoring systems are currently in high demand
• Rating of Elementus more than tripled
These are difficult times for crypto investors: Bitcoin, for example, the largest cyber currency by market capitalization, has lost almost two-thirds of its value compared to its all-time high of well over US$ 68,000 reached in November 2021. Other important cryptocurrencies also had to lose a lot of feathers. In addition to these price slumps, numerous bankruptcies in 2022 – including FTX, Three Arrows Capital, Voyager Digital and Celsius Network – shook the community and weighed heavily on confidence in the industry.
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Numerous market participants are now talking about a new crypto winter, in which prices will continue to fall and may not fully recover from it for years to come. The last time such a winter started was in 2017/18. At that time, for example, Bitcoin collapsed by 80 percent and took years to regain the old highs because many investors lost interest in digital assets.
Elementus convinced
But even in this bleak situation there are occasional bright spots. One example is start-up Elementus, which raised $10 million in a Series A-2 funding round. This money will be used to build the necessary infrastructure to make blockchain analysis more accessible to Web3 institutions. To this end, the development of new products and an increase in staff are planned.
Also participating in the round, which was led by crypto VC firm Parafi Capital, were Moonshots Capital, Spitfire Ventures, and Colaco Investment Group, among others. Elementus came up with a valuation of 160 million US dollars, which means a strong jump compared to the previous financing round in October 2021. At that time, the blockchain analysis company raised $12 million and reached a valuation of $52 million.
Blockchain analysis required
Elementus is a New York-based provider of tools for exploring the Web3 landscape. Web3 is currently a somewhat vague concept of a decentralized, immutable version of the global network. The Web3 is based on blockchain technology, is free of intermediaries and has the same cryptographic verifiability as cryptocurrencies or non-fungible tokens (NFTs). The goal is a decentralized Internet where every user becomes the owner of their data again and retains control over it.
The significant rise in valuations is also likely to be related to the fact that the numerous insolvencies in recent months have greatly increased interest in clear blockchain analyses. For example, creditors of Celsius and BlockFi are using Elementus’ tools to conduct forensic audits in their litigation with the insolvent crypto lenders.
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