How KYC Can Mitigate Risk in the Blockchain. A Response to BuzzFeed

Buzzfeed recently published an article that outlined many of the risks associated with fraudulent activities in the Crypto space – and revealed two of BAYC’s founders.  Whilst their piece was surely informative… we’re here for finding ways to create a safer, more dependable environment for investors, without destroying the anonymity founders have the right to protect.

Adding credibility to the blockchain

The outing of founders and their whereabouts isn’t necessarily something that will ensure clarity (or protection) for investors.  Anonymous, impartial verification does much more to alleviate concern by ensuring that investors get more important info than where the founder went to school; without putting the project team at risk of an unfriendly knock on the door.

Another major concern is potential for fraud. This is a legitimate point with all investment opportunities, but in the ‘real world’ it still feels safer to Meet & Greet – have a due diligence process all printed out ….a picture of a guy.  

KYC (Know Your Customer) helps to mitigate risk. By knowing more about projects, investors can be better assured that they are not going in blind. Which in turn attracts more attractive investment and develops a safer space.  

Blockchain innovation is happening more quickly than policy making.

Ultimately, KYC is an important tool for legitimising the blockchain. It can help empower and protect investors from fraudulent activity which is a MASSIVE step towards creating a safe and secure environment for investment.  The more and better investment the bigger and better crypto investment becomes for everyone in DeFi.

Chapo says “KYC can help mitigate a lot of the risks associated with blockchain-based investments.  By verifying the identities of project leaders and ensuring that they are compliant with regulations in key markets, we can give investors added confidence that their money is going into more legitimate projects.”

“As the global Crypto market continues to grow, it’s important for regulators and investors to understand the benefits of KYC. By implementing verification procedures, we can ensure that project leaders are held accountable and that investors are provided with additional fraud protections. This is an important step forward for the blockchain community, and I’m excited to see what the future holds.” 

Assure DeFi was founded with the belief that the benefits of the Crypto market, especially for innovation, could be realized, with a number of basic risks being mitigated for the large and small investor community.  

Anonymous developers/owners can be confident that they will remain anonymous while investors get blockchain-validated proof that the project owners have gone through a robust KYC identification process that starts with a thorough verification of the anonymous project leaders; providing an accountability path, if legal liabilities occur. 

Blockchain and its benefits are here to stay – we’re here to deliver confidence for both investors and the blockchain community as a whole.