The recent criticism faced by Arkham, the startup behind the blockchain intelligence platform, revolves around its new platform called “Intel Exchange.”
The platform rewards users with its ARKM token for identifying anonymous blockchain addresses, with the goal of unmasking scammers and hackers in the cryptocurrency space.
However, it has been branded as a “snitch-to-earn” system by critics on Crypto Twitter.
READ MORE: Arkham Introduces World’s First On-Chain Intelligence Exchange Amidst Huge Controversy
In response to the backlash, Miguel Morel, the CEO of Arkham, defended the platform during a Twitter Space session held on July 11.
Morel clarified that the platform is not intended to be a completely unrestricted marketplace and emphasized that there are restrictions and guidelines in place.
He highlighted the inadequacy of publicly available blockchains in maintaining the confidentiality of private information, emphasizing that Arkham would retain control of the data.
According to Morel, the primary aim of Arkham’s Intel Exchange is to reveal the identities of trading firms, market makers, large institutions, and exchanges.
He argued that these entities often benefit from having knowledge of who is buying and selling large positions of specific tokens.
To address concerns about potential abuse and false accusations, Morel assured listeners that the platform would be carefully regulated.
He stated that every bounty would need to be approved, making it more regulated than social media platforms like Twitter or Facebook.
However, TV host Ran Neuner expressed reservations, particularly regarding Arkham’s management of user data.
This concern comes in the wake of a recent controversy involving Arkham’s weblink referrals program, which inadvertently exposed user emails through identifiable strings of characters in referral links, revealing the referring email address.
This incident has raised further questions about the company’s data management practices and data security.
Overall, Arkham’s CEO Miguel Morel has dismissed the accusations of the Intel Exchange platform being a “snitch-to-earn” system, emphasizing its purpose of unmasking scammers and providing transparency in the cryptocurrency space.
Nevertheless, concerns regarding data management and security have added to the criticism and scrutiny faced by the startup.
