In an update earlier today, global tech conglomerate Meta shared news of its latest moves surrounding digital collectibles. From September 29th, subsidiaries Facebook and Instagram will now allow users to link their virtual wallets with their accounts and also share non-fungible tokens. Users Across 100 Countries Can Access New Meta Feature Everyone on @instagram and @facebook can now share their digital collectibles in the US, and on Instagram in the previously announced 100+ countries,” Meta announced in a tweet. https://twitter.com/MetaNewsroom/status/1575486040349245446?s=20&t=TpIDHfYcRCtVRMNrwYhWiA…
Solidproof is among the most trusted blockchain security and smart contract auditing companies in the crypto market today. The Germany-based company has its objectives to fix the security and transparency issues smothering the crypto space. Unfortunately, as the industry attains more progress, so do the opportunities for bad actors to victimize honest investors.
According to a yearly report on crypto crimes by Chainalysis, $14 billion of all transactions in crypto in 2021 were associated with scams or money laundering. These figures amount to a nearly 100% increase compared to 2020s $7.8 billion. Furthermore, the rates increase as the DeFi space, NFTs, and metaverses continue to boom.
The DeFi industry seems to be one of the most affected areas, with 72% of the total crypto stolen from cryptocurrencies coming from DeFi protocols. In addition, money laundering in the protocols is also worrying, attributed to their continued growth over the years.
By introducing auditing services and KYC procedures in DeFi, Solidproof tries to limit the pathways bad actors can access within crypto. This way, it aims to improve the credibility of platforms and digital assets at large.
What Pain Points is Solidproof Trying to Address?
Cryptocurrencies are decentralized and anonymous by nature, leading to a hard time following up on crimes despite their endless benefits. One of the most outstanding issues is anon projects, where the team remains anonymous. This factor gives them the crack to escape if they decide to swindle their investors. However, doxxed projects are also at risk as revealing specific details can increase the security risks.
Another point to look at is increased rug pulls in the space. Some teams wait for investors to buy coins during a presale, then remove all the funds from the projects. Slower rug pulls are more complex for investors to catch on, as the bad actors find a way to siphon funds through a back-end process.
As such, you might find a project vesting funds for a given period and still manage to get away with user funds. The same happens in liquidity locks, where rug pulls can go on with the team slowly withdrawing the superior coin in the pair while leaving their yet-to-mature coin in the pool.
Smart contract ownership usually goes to the team, giving them control over changes on a protocol and its tokens. However, to increase trust, some relinquish the right to provide more power to the community. For those who don’t, the possibility of the above issue is at a higher percentage.
Auditing and KYC
Investors can turn to other ways to mitigate risks, including the healthy spread of investments. However, the need to focus on the root of the problem remains.
Solidproof ensures a transparent process during auditing to ensure quality services for all its customers. It leverages the best German technology to stay at par with its customer’s expectations while improving the benefits it offers. Also, it differentiates itself from free auditing services that could overlook several aspects of a project, putting investors and their funds at risk.
The company holds communication as a core value in delivering what it offers. The auditing and KYC procedures ensure there is an open pathway to informing a project of the process while advising on the best ways forward in case of an issue.
Recently, the platform launched the Solidproof Automated Auto Tool (SAAT), infusing a faster and more accurate auditing process for projects. The automated process will increase the overall efficiency of its team in producing comprehensive reports on a project’s code, security risks, compliance, etc.
On the other hand, KYC procedures look into user transactions and their risk of money laundering or other illicit activities. It also investigates the customers’ relationship with the platform they are dealing with. It will offer the best course of action on how the project needs to protect its users in the long run.
Privacy is an essential value to what Solidproof does. As such, no user, company, or audit information becomes public without the parties’ approval. This way, it builds trust between projects and their users while ensuring a fruitful relationship between its team and customers.
So far, the German firm is building lasting collaborations with projects, with the most notable one being Unicrypt. The mutually beneficial relationship ensures Solidproof attains customers; while Unicrypt launches credible projects, presales, and fair launches. As it stands, DeFi and other spaces have the most benefit from Solidproof’s efforts to bring trust and transparency back to crypto platforms, pushing mass adoption.
For more information on what Solidproof is planning in the future, visit the website.