Crypto, which was born during the 2008-2009 financial crisis, is about to see how it handles the next one. That is something Michael Gronager, CEO of blockchain data firm Chainalysis, finds very interesting, he told PYMNTS recently. The idea was, basically, to build this very transparent value transfer network — non-censorable, everyone had access, very open and so on,” he said. Fourteen years later, he added, “here we are again.” The first cryptocurrency, bitcoin, was very much a response to the sub-prime mortgage crisis and what its anonymous creator, Satoshi Nakamoto, saw as the corrupt behavior of the traditional financial system and the complicity of the governments and regulators that were supposed to be overseeing them. The very first bitcoin block mined on Jan. 3, 2009, had a note attached that cited a headline from that day’s Times of London as a sort of timestamp — pointedly, it was about a British bank bailout. Gronager, whose firm specializes in tracking cryptocurrency transactions along the blockchain, often for law enforcement investigators or companies chasing stolen funds, said that “the initial thoughts around crypto were that this is behaving like gold, digital gold.” That argument was widely embraced for several years, until it became clear that bitcoin and the broader crypto market was following the stock market — particularly tech stocks — and was “driven by a lot of the same mechanics,” Gronager said.
OODA has been compiling a comprehensive Web3 incident database based on our research to categorize what compromises are taking place as well as document the root causes that plague Cryptos, DeFi, NFTs, and Web3 in general. Tracking root causes provides comprehensive insights into how innovators can create robust cyber risk management approaches and reduce the potential for consequential attacks. You can access the OODA comprehensive Crypto Incident tracker here.