13. February 2020 | 08:57 CET
BIGG Digital Assets, Bitcoin Group, Chainalysis - why invest now?
The blockchain hype was around two years ago and a lot has changed since then. A consolidation phase has cleared the market and what has remained are the companies and teams that have been able to convince the market and investors of their products and business models. The interest in the sector is often reinterpreted by market participants into the price development of the most famous crypto-currency. The price of a Bitcoin was quoted in the morning at over USD 10,400.00, the highest level since September 2019, and about two months ago the digital currency changed wallets at less than USD 7,000.00. This volatility enabled a speculative gain of about 50%. But the market offers more.
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ISIN: CA0898041086 , DE000A1TNV91
Public authorities are among the major customers
BIGG Digital Assets and Chainalysis are among the providers of solutions with which authorities can track down criminal activities. Using different approaches and technologies, the software products of the two companies make it possible to monitor the payment flows of crypto-currencies and to detect possible criminal activities. It is hardly surprising that the customers of these blockchain companies include the US government and its agencies. With lucrative and growing budgets they work hand in hand.
Detection of suspicious activities
Modern technologies enable law enforcement, RegTech, regulatory and government agencies to follow the virtual money. Search algorithms for detecting suspicious activity within transactions with e.g. Bitcoin, Ethereum, ERC20, Litecoin are a helpful tool for investigators and companies. In the fight against terrorist financing, human trafficking, drugs and weapons, child pornography, corruption, bribery, money laundering and other cybercrime, it is important for successful investigation and prevention that transactions can be tracked and monitored quickly.
Turnover is increasing
Lance Morginn of BIGG Digital Assets commented on the recent five-year contract with the US government for CAD 715,000.00: "We are thrilled to have won this contract, enabling us to further cement our US government relationships and demonstrate the value of our products to the US government. This sizable contract follows on the heels of two other customer contracts valued at CAD 389,000.00 and CAD 355,000.00, respectively, attained in Fall 2019 – demonstrating our ongoing gains in market traction. Entering 2020, we have a healthy pipeline of global opportunities and we look forward to updating our investors as we progress."
The private company Chainalysis has received more than USD 10 million from the US government since 2015 for the provision of products. A potential that also exists for the listed company BIGG Digital Assets and the shareholders. The BIGG share has already gained ground.
New revenue streams with business expansion
Bitcoin Group will also benefit from the positive development of the crypto-currency Bitcoin. With bitcoin.de the German company is Europe's largest trading place for the crypto currency. However, the Bitcoin Group also continues to develop. Via the wholly-owned subsidiary futurum bank AG, the custody of crypto assets will be offered to institutional customers in the future with the blessing of BaFin. The expansion of business activities opens up new sources of income.