The World Market Url Trap
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Darknet Update: Hydra Reigns, Monero Acceptance Climbs, Russian State Collusion Questioned
In the year 2020’s final days Darknet markets (DNM) established new records as marketplaces like White House and the Russian-language DNM Hydra led the pack. The report, released on May 25, shows Hydra has seen an increase of 624% over the year rate in three years, and research suggests that around 75% of the illicit DNM transactions stem from the Russian marketplace. Moreover, the privacy coin monero is experiencing more vendors accepting DNMs in the present. On June 29, monero was able to gain 84% vendors’ acceptance on three of the top marketplaces.
The Complex Russian Darknet Market Hydra Eclipses 26 Marketplaces
While the cryptocurrency markets are sagging relative to value, usage of darknet markets has continued to grow. DNMs are able to remain profitable through Covid-19. The statistics revealed that, even when the world was shut down, DNM usage was booming.
Many DNMs are currently operational as the data and reports show that the two biggest darknet marketplaces comprise Hydra and White House Market. Other notable DNMs during the second half of 2021, include World Market Darknet,Cannazon, Cannahome, Torrez Market, Dark0de Reborn Market, Vice City, Aurora, and the Majestic Garden.
At the end of May, blockchain forensics firms Chainalysis and Flashpoint threat intelligence released a report that does an in-depth analysis of the rise to prominence of Hydra. The report, titled “Hydra: Where Cryptocurrency Roads All Lead to Russia and Go Dark,” clarifies how Hydra administrators impose strict rules on sellers who use the DNM.
Despite Hydra’s strict rules however, the report shows that Hydra is always profitable. Furthermore, vendor withdrawals are routed through Russian exchanges and service operators as the report describes. According to the Flashpoint report and Chainalysis report adds:
“Hydra market activity has skyrocketed since its inception, with annual transaction volumes growing from a total of $9.40 million in 2016 to north of $1.37 billion by the end of 2020. Observed through blockchain analysis, we see a staggering 624% year-over-year growth rate for Hydra in its three most recent years 2018 to 2020.”
Monero Acceptance on Darknet Markets Continues to Rise
Darknet tracker data , provided through the cryptocurrency analytics company 1000x Group indicates there are around 27 DNMs that are currently in operation. Nine of these markets accept BTC only five markets will accept BTC as well as a range of currencies 11 markets accept BTC as well as monero (XMR) as well as two markets will only accept XMR. Bitcoin market only include Darkfox, Hydra, Vice City, Aurora, Majestic Garden, Neptune, Mega, Global Dreams, and Flugsvamp 3.0. In addition, the marketplaces that are dedicated to monero-only markets include White House Market and Archetyp Market.
One of the best markets, similar to Hydra, White House Market (WHM) also has strict rules and monero (XMR) only acceptance is one of the requirements. WHM additionally requires two-factor authentication and the use of PGP as well as the fact that the site frequently suffers from DDOS attacks over the decades. The DNM is home to hundreds of vendors and claims to have over 1 million users by 2021. WHM gained a significant amount of buyers and vendors after the downfall of Dream Market and there’s more than 50,000 items available. The DNM White House Market Also, the White House Market makes a 4% commission on everything sold on the deep web portal.
Research shows the monero (XMR) has seen significant growth in customer acceptance on three distinct functional DNMs. While BTC still holds the upper hand on DNMs, XMR commands an impressive amount of approval on these markets. DNM tracker data shows during the two weeks that ended in May, XMR market acceptance was over 50%..
The first two weeks of June, monero was able to see a decline under the 50% handle and reached a low of 37.60% by June 8. But, monero’s acceptance by vendors was up to 84% by the 29th of June and has remained above the 50% area ever since. In the event that monero saw a low in mid-June, there was greater proportion of litecoin (LTC) acceptability at the moment. The rate of acceptance for vendors tracks the level of vendor acceptance in Versus Market, Cannahome, and Cannazon.
Does Hydra Enjoy a Semi-Official Sanction from Russian Leaders?
Meanwhile, as Hydra has become one of the biggest DNMs in the world, surpassing the previous Russian DNM Ramp, Joe Biden’s administration has been focusing on Russia’s involvement in these kinds of actors. Biden has been talking about Russia to the press and wants Russia to combat cyber threats such as ransomware.
In the wake of the Colonial Pipeline attack and the Kaseya breach, Biden told the press that he spoke with Russian president Vladmir Putin on Friday. Biden said he advised Putin he must “take action” against these cyber actors.
“I made it very clear to [Vladmir Putin] that the United States expects when a ransomware operation is coming from his soil even though it’s not sponsored by the state, we expect them to act if we give them enough information to act on who that is,” Biden stated this week.
Now the ransomware is one issue however Bloomberg reporter Leonid Bershidsky thinks there’s a possibility that Hydra has some kind that has a “semi-official sanction” from Russian officials. Bershidsky mentions in a recent article that Russia’s “Hydra, its krysha, or protection, is the elephant in the room.” The author explains that Putin doesn’t really have any motivation to take action against DNMs and also thinks that “retaliatory action from the U.S. isn’t compelling enough.” Bershidsky’s opinion editorial concludes:
“As things stand, Putin can let the likes of Hydra worry about that prospect. And if they are crushed, others can take their place. The dark web is nothing if not resilient.”
