From Cointelegraph
May 24, 2025 10:00 AM:

Wallet intelligence in the world of cryptocurrency is becoming increasingly powerful, as seen in the recent 90% drop in value of Mantra’s OM token within hours. Firms like Chainalysis and Arkham Intelligence are extracting insights from blockchain data for compliance monitoring and predictive trading, giving a strategic advantage to those with access.

However, this transparency also exposes users to dangers, as every transaction leaves a breadcrumb trail that can be followed by sophisticated actors. Regulators, exchanges, and analytics firms are using wallet intelligence to enforce compliance and track illicit activity, but it also opens the door to abuse such as centralized surveillance and preemptive censorship.

The collapse of OM and FTX showcased the power of wallet intelligence in uncovering misconduct and exposing the misuse of customer funds. Blockchain transparency can reveal truths that centralized actors try to bury, destroying trust and value in the process.

Wallet intelligence poses a growing threat of surveillance capitalism in the crypto space, enabling actors to manipulate price action, influence reputational narratives, and destabilize protocols. The centralization of these tools and data pipelines creates a systemic risk, giving a small number of firms disproportionate influence over transactions and behaviors.

As wallet intelligence becomes more influential, the crypto community must prepare for heightened regulatory scrutiny, targeted enforcement, and increased volatility. Transparency without guardrails can lead to tyranny, so developers and protocols should push for decentralized platforms that prioritize privacy without sacrificing accountability.

In this new era of crypto, understanding how wallet intelligence is governed and who has access to it will be crucial in determining whether it serves the ecosystem or destabilizes it. Users should be aware of how their data is being tracked and potentially weaponized, while regulators need to grasp this technology to avoid empowering the wrong actors.

Read more at Cointelegraph: Wallet intelligence shapes the next crypto power shift