Solidus Labs Incorporated
Solidus Labs Incorporated
Solidus Labs is a FinTech startup founded by Asaf Meir in December 2017, together with Co-Founder Praveen Kumar and a team of additional former Goldman Sachs engineers.[1] The company provides machine learning-powered market and trade surveillance infrastructure tailored for digital assets, as well as regulatory reporting and compliance solutions.[2]
Solidus' products are designed to help blockchain-based financial service providers including broker dealers, market makers, hedge funds, centralized and decentralized exchanges, second layer protocols and oracle services, detect market manipulation in digital asset trading, minimize regulatory risk, protect reputation and reduce operational costs.[3][4] According to consulting and market research firm Future Market Insights, Solidus Labs is "expected to highly influence the trade and surveillance market" between 2018-2028, alongside industry veterans like Accenture, KPMG and NICE Systems.[5]
Solidus Labs is headquartered in Wall Street, New York City, with an additional office in Tel Aviv, Israel. Additional members of Solidus' founding team include software developer and blockchain enthusiast Shimon Mazor, and former journalist Chen Arad.[6]
Thought Leadership on Digital Assets Market Manipulation and Trade Surveillance
Solidus Labs leadership is often quoted on the challenge of market manipulation in digital asset markets, and the role of trade surveillance in the emerging blockchain-based financial services ecosystem.[7] In 2018, following major excitement and investor interest in cryptocurrencies and other digital assets during 2017, concerns increased regarding market manipulation and fraud in blockchain-based asset trading.[8] According to various reports and studies, market manipulation often accounts for two thirds of trade volume in major cryptoasset exchanges - as much as $6 billion daily - and sometimes can reach a level as high as 93% of volume.[9][10][11] A Wall Street Journal investigation revealed in August of 2018 that as "pump and dump" schemes accounted for at least $825 million in trades during the preceding 6 months. In early 2019, both the U.S. Security and Exchange Commission and the Financial Industry Regulatory Authority included digital assets, including manipulation concerns, in their yearly regulatory examination and inspection priorities.[12][13]
In an interview with Thomson Reuters Regulatory Intelligence published September 14, 2018, CEO Asaf Meir explained: "There are traditional ways of manipulation taking place in this new world, but the way they are detected is entirely different. Not only that, there are new ways to manipulate... the technology is completely different — smart contracts, e-wallets, oracles — traditional surveillance systems cannot integrate seamlessly into the trading workflow of blockchain,"[14]
In an interview with Forbes on August 23, 2018, following the rejection by the Security and Exchange Commission of numerous applications by digital asset firms to trade Bitcoin Exchange Traded Funds on traditional exchanges, Meir stated that the complexity of assets like bitcoin creates sizable opportunities for savvy and malicious actors to manipulate markets, adding: “The SEC’s decisions over the past few weeks reflect that concern and correspond with more and more reports on the enormous volume of manipulation in cryptoasset trading,” he said, noting that the agency is “repeatedly citing the lack of sufficient trade surveillance for these assets.”[15][16] In a December, 2018 op-ed published on Finance Magnates, Meir further elaborates on the company's vision for manipulation detection, writing that to accommodate the complexity of blockchain-based trading "the new world of digital, blockchain-based financial markets requires a new class of surveillance infrastructure that’s blockchain-native and tailored for digital assets."[17]
In an article published on the company Medium page, Solidus describes the "game of chicken or the egg" between the cryptoasset industry and regulators, calling the industry to "take the lead" towards self-regulation to pave the way for regulators, arguing that "the best way to do so is to establish market surveillance standards.[18] In another post, published August 6, 2018, CEO Asaf Meir presents "Seven Principles for the Future of Trade Surveillance," emphasizing the complexity of blockchain-based assets, the need for forward thinking crypto-native solutions, and the necessity of collaboration between industry actors and regulators.[19]
Origin of the Name Solidus
Solidus Labs' name originates in the Late Roman Empire coin Solidus, a relatively pure gold coin first minted in 301 AD, and widely circulated by Constantine I after 312 AD. Variations of the solidus were used in different European states for almost a millennia after it was first minted.[20]
References
- ↑ Security Token Academy, Security Token Summit Interview with Asaf Meir and Praveen Kumar, retrieved 2019-01-29
- ↑ "Time For A Clean Up? Market Manipulation Concerns Loom Large Over Bitcoin ETF Rejections". Forbes. Retrieved 2018-10-26.
- ↑ "Solidus Labs | Home". Solidus Labs. Retrieved 2018-10-26.
- ↑ "Solidus Labs protecting crypto assets with new platform". Proactiveinvestors NA. Retrieved 2019-01-29.
- ↑ "Trade Surveillance Market Estimated to Record Highest CAGR by 2028 End - Press Release - Digital Journal". www.digitaljournal.com. Retrieved 2019-01-30.
- ↑ "Solidus Labs | Home". Solidus Labs. Retrieved 2018-10-26.
- ↑ "Solidus Labs | Conversation". Solidus Labs. Retrieved 2018-10-26.
- ↑ "Bloomberg - Bitcoin Is the Market's Favorite Buzzword". www.bloomberg.com. Retrieved 2018-10-26.
- ↑ Stone, Todd. "Two-Thirds of Daily Crypto Trade Volume May Be Fake". deBanked. Retrieved 2018-10-26.
- ↑ "Exchange Rankings". Blockchain Transparency Institute. Retrieved 2018-10-26.
- ↑ Ribes, Sylvain (2018-03-10). "Chasing fake volume: a crypto-plague". Sylvain Ribes. Retrieved 2018-10-26.
- ↑ "SEC.gov | SEC Office of Compliance Inspections and Examinations Announces 2019 Examination Priorities". www.sec.gov. Retrieved 2019-01-29.
- ↑ "2019 Annual Risk Monitoring and Examination Priorities Letter | FINRA.org". www.finra.org. Retrieved 2019-01-29.
- ↑ Wolcott, Rachel (September 14, 2018). "Crypto markets and assets present tech-savvy bad actors with new and yet undetected market abuse opportunities". https://www.complinet.com/editor/article/preview.html?ref=201362. Archived from the original on
|archive-url=requires|archive-date=(help). Retrieved October 26, 2018. External link in|website=(help) - ↑ "Time For A Clean Up? Market Manipulation Concerns Loom Large Over Bitcoin ETF Rejections". Forbes. Retrieved 2018-10-26.
- ↑ Rooney, Kate (2018-11-27). "SEC wants key upgrades in crypto markets before approving bitcoin ETF". www.cnbc.com. Retrieved 2019-01-30.
- ↑ "The Bitcoin ETF Saga: Rethinking Digital Asset Trade Surveillance | Finance Magnates". Finance Magnates | Financial and business news. 2018-12-17. Retrieved 2019-01-30.
- ↑ Labs, Solidus (2018-06-20). "The Blockchain Regulation Chicken or the Egg Question". Medium. Retrieved 2018-10-26.
- ↑ Labs, Solidus (2018-08-06). "Seven Principles for the Future of Cryptoasset Trade Surveillance". Medium. Retrieved 2018-10-26.
- ↑ "Roman coins: Solidus". www.monete-romane.com. Retrieved 2018-10-26.
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