The digital asset market, even though dynamic, has been seen by many people as the home of all things illegal. Most of these people cannot be blamed as these things in the market are evident enough.
The rate at which the hacks and scams have been happening in the crypto market in the past few months has shown that those who do not know the lay of the land would get lost or scammed in the process. While that is evidently something that should be tackled, the menace of fraud in the crypto market can never be underestimated. To tackle that menace, a previous Coinbase employee has started a new company that would check fraudulent activities in the crypto sector.
The CEO says that crypto entities need the platform
The announcement came at the same time that the firm announced that it had received an investment of close to $4.6 million in a funding round conducted some days ago. According to the CEO of the said firm, Soups Rajan, the platform, Sardine, would go after investments and businesses active in the crypto space.
In their modus operandi, the firm said that each business would have their score after signing up on the platform. To achieve this, the company has said that it would source for various data of different companies from different sources. Some of these sources include credit card details, social media, and others.
The company has also said that it would also help companies in the crypto space against various hack attacks. In their statement, the firm says that entities always tend to go under great potential in the crypto market if they are rocked with a mammoth of fraudulent activities.
The company saw an investment of $4.6 million
The statement also pointed out that they will help the businesses onboard real users to check fraud activities across the exchanges. They pointed out that since fraud is so rampant in the crypto market, they are hoping to help companies eliminate that even before it is done.
According to a report, malicious actors have been able to siphon nothing less than $1.9 billion from digital assets exchange in the market across the whole of last year. While last year’s numbers seem to be remarkably big, the one before was a higher figure of $4.5 billion. In his argument, Rajan said that most of the crypto exchanges’ approaches do not guarantee safety from fraudulent activities.
He positioned that his outfit is in the best position to help the respective firms achieve their fraud and risk-free platform. The seed funding round is just proof to show how firms need the platform, and it was led by XYZ Ventures. The notable list of donors includes Coinbase, Sweat Equity Ventures, and Village Global.