Darknet Update: Hydra Reigns, Monero Acceptance Climbs, Russian State Collusion Questioned
At the end of 2020 darknet markets (DNM) have set new records , as markets like White House and the Russian-language DNM Hydra led the pack. The report, released on May 25 shows Hydra recorded an increase of 624% over the year in just three years and researchers estimate roughly 75% of illegal DNM transactions come from the Russian market. Furthermore, the privacy-focused coin monero is experiencing more vendor acceptance on DNMs these days. On the 29th of June monero captured 84% of the vendor’s acceptance on three of the top marketplaces.
The Complex Russian Darknet Market Hydra Eclipses 26 Marketplaces
While cryptocurrency markets are down in value, the use of darknet markets has continued to rise. DNMs have managed to stay lucrative throughout Covid-19 and stats indicated that while the world market url; http://kala.eclectek.com, was in lockdown, DNM use was on the rise.
A number of DNMs are operating today, as reports and data show that the two biggest darknet marketplaces comprise Hydra and White House Market. Other notable DNMs during the second half of 2021 are World Market Darknet, Cannazon, Cannahome, Torrez Market, Dark0de Reborn Market, Vice City, Aurora, and the Majestic Garden.
At the end of May, the blockchain forensics companies Chainalysis as well as Flashpoint threat intelligence released the report, which takes a deep dive into the rise of Hydra. The report, which is titled “Hydra: Where Cryptocurrency Roads All Lead to Russia and Go Dark,” provides an explanation of the ways in which Hydra administrators impose strict rules for sellers who are using the DNM.
Despite the strict rules of Hydra, the report highlights the fact that Hydra is always profitable. Furthermore, vendor withdrawals can be directed through Russian exchanges as well as service operators as the report describes. The Flashpoint along with the Chainalysis report also states:
“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 by the blockchain analytics firm 1000x Group indicates there are around 27 DNMs operating today. Nine of them accept BTC only five markets take BTC as well as a range of coins eleven markets are accepting BTC in addition to monero (XMR), and two markets only accept XMR. Bitcoin market only include Darkfox, Hydra, Vice City, Aurora, Majestic Garden, Neptune, Mega, Global Dreams, and Flugsvamp 3.0. While, markets that specialize in monero are limited to White House Market and Archetyp Market.
One of the best markets like Hydra, White House Market (WHM) also has strict rules , and monero (XMR) only acceptance is one of the rules. WHM has 2FA requirements and the use of PGP as well as the fact that the site frequently suffers from DDOS attacks over the many years. The DNM includes hundreds of vendors, and claims to have more than a million users in 2021. WHM picked up a huge number of vendors and customers following the demise of Dream Market and there’s more than 50,000 products listed today. The DNM White House Market is also earns a 4% commission for everything that is sold on the deep web site.
The statistics show that monero (XMR) has seen significant growth in vendor acceptance on three specific completely operational DNMs. Although BTC is still the most popular choice for DNMs, XMR commands an impressive amount of approval on these markets. DNM tracker data indicates that during the last two weeks of May XMR market acceptance was at or above 50%.
For the first two weeks in June monero witnessed a decrease under the handle of 50% and saw a peak of 37.60% by June 8. However, monero’s vendor acceptance climbed to 84% on June 29 and has been in the 50% area ever since. In the event that monero saw a low in mid-June, there was higher proportion of the litecoin (LTC) vendors accepting the currency at that time. The vendor acceptance rate tracks the level of vendor acceptance in Versus Market, Cannahome, and Cannazon.
Does Hydra Have a Semi-Official Sanction from Russian Leaders?
As Hydra has grown to become one of the biggest DNMs around the world, following its success in beating the old Russian DNM Ramp, Joe Biden’s administration is particularly concerned about Russia’s involvement in these kinds of actors. Biden has been speaking about Russia in the media and has urged Russia to combat cyber threats , such as ransomware.
Following the Colonial Pipeline attack and the Kaseya breach, Biden told the press that he spoke to Russian President Vladmir Putin on Friday. Biden declared that he had told Putin he must “take action” against these cyber-criminals.
“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.
This ransomware threat is one issue however Bloomberg writer Leonid Bershidsky believes there’s a possibility that Hydra is under some sort that has a “semi-official sanction” from Russian authorities. Bershidsky notes in a recent article the fact that Russian’s “Hydra, its krysha, or protection, is the elephant in the room.” The writer explains that Putin has no motive to stop DNMs and he 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.”