Chainalysis decides to start making reports on Dogecoin (DOGE) as well

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Aug 10, 2021
  • Popular blockchain data reporting company, Chainalysis, decided to add a new coin to its reports.
  • The coin in question is the first and most popular memecoin, Dogecoin (DOGE).
  • While DOGE saw massive amounts of popularity among users, it also attracted online criminals.

Dogecoin (DOGE/USD) has impressed a lot of people earlier this year when it skyrocketed to being one of the largest cryptocurrencies by market cap. Its price action made it one of the best performers of the year, if not the best one.

While its price has receded quite a bit since reaching its peak, the impact is still strongly felt, and many are now keeping a close eye on the first memecoin. So much so, in fact, that Chainalysis — a blockchain data platform headquartered in New York — recently announced that it plans to include DOGE in its crypto reports from now on.

DOGE attracted the eye of online criminals

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While the coin’s popularity has caught the attention of some high profile individuals, specifically, Elon Musk — it didn’t go unnoticed by criminals, either. Chainalysis itself noted this, saying that there has been an increase in the coin’s use for criminal purposes. It reported seeing a number of DOGE-related thefts and scams, including even a giveaway scam that allowed scammers to gather up over $40,000.

Fraudsters impersonated Elon Musk, and they offered to pay users 10x back on any amount of DOGE that users send to the address they provided. They even promoted the scam via hacked Twitter accounts, all of which happened soon after Musk referenced Dogecoin during his appearance on Saturday Night Live back in May.

Furthermore, Chainalysis said that DOGE also started seeing a massive amount of use in high-risk jurisdictions, with Iran being the prime example. In addition to all of that, the company simply decided to start reporting on DOGE because their community started requesting it.

With Dogecoin’s popularity and adoption also came great misuse, which is not unheard of. It happened to many other major and popular cryptocurrencies, with Bitcoin still being the most commonly misused one. This misuse of digital currencies is one of the reasons why many claim that regulations are necessary in order to increase investors’ safety and security of their funds.

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