Cryptocurrency has been the center of attention since the beginning of the pandemic, even reaching the point where Google searches for Bitcoin out weighed the searches of COVID-19. At the same time, world-class scammers have taken note of the increased interest in the sector. With the growing popularity of the crypto and blockchain industries, there has been an unprecedented rise in scammers in this space.
The high-tech nature of the crypto industry combined with the limited knowledge that most possess is the perfect combination for scammers. It makes it an easy environment to pull off scams worth millions of dollars. However, there are those working to stop scammers from invading the space. Here is a breakdown of some of the tools and firms working on solutions to fight back the scammers from the budding crypto sector.
SpyWolf is a project whose stated mission is to hunt down crypto scammers. They have a goal of eliminating all monetary fraud in the crypto space. To achieve this goal, SpyWolf uses a utility token and advanced auditing services.
Every project in the crypto space is welcome to request an audit by the SpyWolf team. The team will then publish easy-to-read audit reviews of the project’s code, team, website, and social media channels. They will then provide a promotional NFT as part of the audit, which can be shared with the project’s community. This NFT acts as a “Certificate of Trust”, which proves to the community that a project is SAFU.
The SpyWolf project also offers KYC services that are meant to protect the crypto industry against fraud, money laundering, corruption, and terror financing. Additionally, they offer consultancy services on how to launch a project from the idea stage. SpyWolf experts will guide project creators throughout the process to ensure they possess a strong foundation. As part of the consultancy, SpyWolf works with a team of lawyers to ensure projects comply with law.
To ensure that it successfully combats fraud in the crypto space, SpyWolf runs a unique bounty program that rewards those that help identify fraudulent projects in the space.
The net effect of the SpyWolf project is the creation of a safer crypto space for all. It ensures that when people try to join the space, they are not scammed, which could put them off technology and ecosystem that could revolutionize all aspects of modern life.
CertiK is another project that is leading the effort to clean up the crypto space. It is a security blockchain with numerous uses. The primary use of CertiK is as a Formal Verification technology for performing security audits on crypto projects. It also runs a leaderboard page where projects are rated by their level of trust.
It performs security audits on blockchain protocols, DApps, Wallets, and smart contracts. To date, CertiK has partnered with leading players in the sector such as Huobi, Binance, and IBM. The goal of CertiK is to uncover exploits and other security vulnerabilities in the code of projects in the crypto space. Besides performing audits, CertiK has a secure programming language within its native blockchain. Using this native language, users can create verified smart contracts on the blockchain using DeepSEA.
Escrow Protocol is another project worth talking about. It operates as a decentralized trust fund, which combines traditional crowdfunding with blockchain technology via smart contracts. Startups seeking funds can create roadmap milestones and timelines. These are based on their actual capacity and realistic performance targets.
Via Escrow Protocol, they establish measurable achievement for the delivery of funds once promises have been fulfilled. With Escrow Protocol, project designers can build trust with investors by allowing ICO funds to be managed post-raise using milestone-triggered micropayments. It gives investors unprecedented oversight over a project, which protects them from rug-pulls that have become common in the crypto space.
While the crypto space is still young and attractive to scammers, experts within the space are taking them on and succeeding. As the use of the tools above continues to grow, it will help to deter scammers while also helping to build trust amongst potential investors. The result will be a healthier ecosystem, whose growth is not hampered by a lack of trust.