- Blockchain watchdog, CertiK, is now valued at $2 billion after completing a funding round.
- The steep rise in value for the firm could be the foreboding of the impending crisis for cryptocurrencies.
- Hacks and exploits have threatened the survival of the nascent industry with billions of investors’ money lost to criminals.
In Q1 of 2022, the crypto ecosystem recorded wave after wave of exploits from bad actors. Projects are now running towards blockchain security firms for an extra layer of protection, sending their values to new highs.
CertiK To The Rescue
CertiK, a blockchain security firm, has raised $88 million in a Series B3 round that confers a valuation of over $2 billion for the company. In the last three months, CertiK has doubled its valuation and the staggering growth has been noted by industry experts.
Participants in the raise included Sequoia Capital, LightSpeed Venture Partners, and Goldman Sachs and were led by the trio of Insight Partners, Advent International, and Tiger Global. Three months ago, CertiK was successful in raising $80 million via a Series B2 raise that gave it a valuation of just around $1 billion.
CertiK was launched in 2018 with the company specializing in the auditing of smart contracts to spot vulnerabilities that might be attacked by bad actors. According to details from the project’s website, CertiK has secured over 300 billion worth of digital assets and has 2,500+ clients to date.
Co-founder Ronghui Gu told newsmen that developers are now seeing the importance of a security audit and the injection of fresh capital, CertiK will go on to become the leading platform for security in the cryptoverse. He added that this raise will be the last for the year and as a private company, the firm will not be looking to have an IPO in the coming months.
Gu disclosed that the amount raised will be instrumental in raising the firm’s staff strength to 200. Gu expressed confidence in the road map, citing the growth in revenue and the surge in profits by over 3,000 times.
Why Is CertiK’s Valuation Sky-High
Cryptocurrency scams and exploits have been on an increasing trajectory since 2020 and show no signs of closing down. In 2021, the industry recorded over $1 billion in losses from exploits with the PolyNetwork hack grabbing all the headlines.
With four months gone in the new year, the industry has lost over $1 billion in digital assets. Ronin Network and Wormhole took the lion’s share of the hits with over $800 million being lost between them.
These figures have led to projects to turn to blockchain security firms as an added layer of security against threats. Despite the valiant attempts of these security firms, the future still looks grim for cryptocurrencies as attacks are being carried out with increasing regularity. For now, projects like CertiK are the industry’s best chance to stifle the antics of hackers looking to pilfer funds from projects.