Chainalysis, a company that specialises in analysing blockchain data, has announced a new business data product offering that can be used by cryptocurrency exchanges to optimize their product upgrades and also drive user growth.
The company has been collecting blockchain data since 2014 using extensive tools and data repositories and now all this data and insights that can be gained from this data will be available for various crypto exchange companies.
“The benefit of cryptocurrency is its inherent transparency, and with the right data, businesses can gain valuable intelligence to inform their growth strategies,” said Jonathan Levin, Co-Founder, and Chief Strategy Officer, Chainalysis. “This level of data-driven business development is another advantage of blockchains that just isn’t possible in traditional finance.”
Using this data, the crypto exchanges would be able to make some major decisions regarding sales and marketing including questions like whether they need to do promotions with regard to certain cryptos, what kind of volumes are being done in their exchange and others, whether users are coming or leaving to other exchanges, what acquisition channels bring them the most users, etc.
The business data would be available as a data feed that can be integrated into the user platforms. Then it is up to the companies to build on this data so that they can glean more details about their user behavior and then this can be used to target specific growth areas and bring in features that are more likely to be welcomed by the users.
“One of cryptocurrency’s many advantages is its transparency, which provides unique opportunities for business development,” said Phoivos Mytilinaios, Head of Business Intelligence & Data Engineering at Bitpanda, Europe’s leading digital asset platform. “By extending their data-driven offerings beyond compliance, Chainalysis will help inform our marketing and product development strategies to grow and retain our customer base.”
The business data is currently available on a subscription basis for the customers. It recently closed its Series D funding and now has a valuation of 2 billion dollars. The company has focussed on the collection and analysis of blockchain data and has been used by companies like Hex Trust and Banco Topazio for due diligence on customers.
The company is expected to expand on its data offerings in the future as crypto transactions gain more and more traction in the coming months. This added interest also makes it important for the companies to know their customers and what they are doing and hence this data collection and analysis is likely to become very important for the companies.