Opinion: Scott Lehr, Alteri.io advisor

In the world of cryptocurrencies, knowledge is not only power – it is a weapon. The last collapse of the OM Mantra token, in which he fell by 90%within a few hours, emphasizes how the intelligence of the wallet can be used with destructive effects.

The intelligence of the portfolio is the analysis of blockchain data in real time in order to separate insights from the behavior of the portfolio, transaction patterns and assets. Companies such as Chainalysis and Arkham Intelligence have converted on the harsh activity of onchain into high resolution supervision, enabling everything from monitoring compliance to predictive trade. This level of insight gives a strategic advantage to those who can access it.

However, such power has consequences. There is a up-to-date battlefield on blockchain and you can be threatened.

Minus transparency

As the transparency of blockchain progresses, the nickname, which once protected users, quickly dissolves. Each transaction leaves the trail to a roll – one that sophisticated actors can follow. The intelligence of the portfolio is increasingly used by regulatory bodies, exchange and analytical companies to enforce compliance and track illegal activities. It also opens the door to abuse: centralized supervision, profiling and preventive censorship.

The fall of OM revealed dangers

The April collapse of OM offers a case study how these dynamics play. Although it has not been proven, reports suggest that a single trader initiated a huge lack of binance in the eternal market, allegedly using market liquidity to launch a cascade of liquidation. At the same time, the Mantra token took place in a very centralized way – 90% OM Supply was from the outside. Connect this with low fluidity and penniless transparency around the OTC transaction, and you will receive a chain reaction that destroyed millions of market capitalization and investors’ trust.

FTX rainfall and portfolio intelligence power

We saw the echoes of this dynamics during the fall of FTX. While regulatory authorities and internal auditors did not issue an alarm, early warnings came from a part of the cryptographic community – analysts and observers who marked dubious ties between Alamed and FTX research. But the full range of improper behavior was not disclosed until it leaks the balance, and the cascade of withdrawal forced the truth to the open part. After the fall, the intelligence of the wallet became critical. Investigators of Blockchain and independent of the bastard traced the movement of billions of customer funds, revealing how deeply related – and improperly used these assets. Precipitation not only destroyed the value. He crashed trust and proved that in the right hands the transparency of blockchain could discover the truths that centralized actors are trying to bury.

The growing threat of supervision capitalism

This is a up-to-date battlefield. The intelligence of the portfolio allows actors to move first, manipulate the price or influence reputational narratives by selective disclosure of the portfolio data. In the wrong hands, he becomes a weapon capable of destabilizing protocols, shaping regulatory pressure or undermining decentralization of cryptography.

What happens when Blockchain data stop protecting users and begins to profile them?

Last: Mantra Links OM token Crash with risky cryptocurrency exchange rules

Centralization of these data tools and pipelines is a systemic risk. A diminutive number of companies with privileged access and institutional relationships now have a disproportionate impact on which transactions will be marked which wallets are blocked and which behaviors are interpreted as “suspicious”. This is not decentralization. This is the capitalism of supervision with blockchain veneer.

What does the cryptographic community do now

Implications for markets are significant. As the portfolio intelligence tools become more influential, expect increased regulatory control, targeted enforcement and variability driven by actors who can read the tape before the rest of the market see it. In the wrong context, transparency without a handrail can transform into tyranry.

The intelligence of the wallet is here to stay – but how it is ruled, who has access, and whether it strengthens or undermines decentralization, determines whether it serves the ecosystem or destabilizes it.

Blockchain users: Stop assuming decentralization means security. Find out how your data is followed, interpreted and possibly armed.

The regulatory authorities must understand this technology before trying to regulate it – or the risk of strengthening the wrong actors.

Developers should press the decentralized portfolio intelligence platforms that return the power to the network, not several companies.

Protocols should bake privacy in their architecture without sacrificing responsibility.

In the next era of cryptography, what you do not know about your own portfolio can be exactly what someone else uses to move against you.

Opinion: Scott Lehr, Alteri.io advisor.

This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.