Manipulation in Crypto Markets and the Applicability of Quantitative Modeling

Crypto and its Convergence with Institutional Trading

Institutional investment has long been the key to mass adoption in the crypto industry but with the chaos of 2022 and the demise of several large industry players, we have to start assessing what the real risks are in this space.

In this episode, Ian Andrews (CMO, Chainalysis) gets to speak with Kyle Downey (CEO & Co-founder, Cloudwall), whose team is building what they hope is the world’s most sophisticated digital asset risk platform named Serenity. 

Kyle emphasizes the need for better infrastructure and  risk management tools in the crypto space, particularly for institutional investors. and discusses the challenges and opportunities in the DeFi space and the importance of finding a balance between privacy and transparency.  

Ian and Kyle double down on the industry needing to prioritize counterparty risk and also touch on what real world asset tokenization will look like for portfolio managers.

• (2:02) - Kyle Downey’s early foray into Bitcoin, Mt. Gox and crypto trading
• (8:08) - Need for more investment in institutional-grade tools and systems for crypto
• (13:20) - OTC markets, DeFi platforms and capital efficiency challenges with transparency on the blockchain
• (17:06) - Momentum and interest in DLT and crypto within financial institutions 
• (22:25) - Potential impact of risk management platforms and limitations of risk systems in detecting fraud
• (26:02) - Importance of addressing counterparty risk in the crypto industry
• (31:45) - The role of risk management tools in attracting risk-averse investors
• (36:13) - Open questions and challenges in regulating DeFi
• (42:27) - Serenity's upcoming release and portfolio analytics suite

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

• Website: Cloudwall: The world’s most sophisticated digital asset risk platform
• Blog: Analyzing Exchange Token Risk with Serenity Post-FTX12
• Newsletter:  The Seven Deadly Sins of Finance: Building a better financial architecture in institutional crypto
• Case Study: Cloudwall: Empowering Digital Asset Managers with Serenity
• Announcement: Copper partners with Cloudwall, Bringing Stronger Operational Risk Controls to its Institutional Investors
• Blog: Latin America: Venezuela and Argentina Stand Out as Examples of Crypto’s Unique Utility
• Blog - Crypto Basics: The Importance of Blockchain Security
• YouTube: Chainalysis YouTube page
• Twitter: Chainalysis Twitter: BuildCareers at Chainalysising trust in blockchain
• Tik Tok: Building trust in #blockchains among people, businesses, and governments.
• Telegram: Chainalysis on Telegram 

• Ian Andrews * Host * (Chief Marketing Officer, Chainalysis) 
• Kyle Downey (CEO & Co-founder, Cloudwall)

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