keypad blackboard is a place to learn about crypto safety. As a potential investor or seasoned veteran, insight into this space is important. keypad blackboard will host many articles from verified contributors on the safety aspects of cryptocurrency investing.
Robert Browning S3EK Founder & CEO
KnowYourCrook Crypto Safety Advocate
Bryan Lawrence GlowV2 Founder & CEO
Hunter Patterson Cybersecurity Expert
Jay Squirrel AstroDonkey Project Manager
Joe Way, PhD Keynote Speaker/POODL Admin
KYC services aren’t new to the world of finance however they are new to many of us whose first exposure to this world was Crypto Currency. KYC simply means Know Your Customer. This has been a standard practice in the world banking market for decades. It allows investors or business partners to know who exactly they’re engaging.
Imagine going into a bank to deposit your money and the teller is wearing a mask to hide their identity. You would probably walk out. Why should cryptocurrency be any different?
Knowing who you are engaging is even more important in our space. Staying behind the curtain in defi is common place. We at S3EK have mixed the real world standard with our own brand of verification service. We feel it is far more important, not less to KYC in this space. For these reasons we intend to be the standard provider for KYC and auditing services in the world of digital assets for decades to come.
Bottom Line Up Front
Keeping your funds secure is an ongoing process that requires regular attention and action. Wallets should be disconnected from dapps and websites you are not currently using, and permissions should be revoked for projects you’re no longer invested in. Use separate wallets for holding, DEX trading, and yield farming. If you have high value NFTs, they should be held in separate wallets as well. Never store funds on a CEX or any other custodial wallet, and never, under any circumstances, give out your seed phrase or private key.
Crypto assets like tokens and NFTs are stored on their respective blockchains. Wallets hold the keys that give you access to those assets, allowing you to interact with them. For web3 websites and dapps, wallets also act as login credentials, allowing you to access your account in lieu of (or sometimes in conjunction with) entering a username and password. If you lose control of your wallet or private key/seed phrase, you lose control of your assets and web3 accounts. Needless to say, keeping your wallet safe should be a top priority.
As with everything in crypto, understanding your own threat model is important here. Somebody holding 7-8 figures in crypto and multiple NFTs worth hundreds of ETH each has a very different threat model than someone who put a few dollars into Coinbase because of a Super Bowl ad. What follows are tips and best practices for keeping your wallet and keys secure. You decide, based on your own threat model and risk tolerance, what steps are appropriate for you to take.
Continue reading this article here.
Keeping Your Wallets Safe
Doxxing is extremely important when it comes to the KYC process and one of the best ways to be fully doxxed is to start an LLC. You are now reassuring your investors that they are investing into a legitimate business who can be held accountable for their actions as developers.
To start a LLC, you have to file with the Secretary of State and by doing that you are accepting full responsibility of the company. Filing for an LLC is a best practice when starting a 501c3 which is a non-profit organization. That is something that we at Glow Token LLC plan to do. The LLC allows us to expand our business and apply for opportunities. For example, applying for exchanges, payment portal, and many more items outside of crypto itself. Once we have the non-profit set up, it will truly allow us to take the charity part of our company to the next level. We will be able to show continued support for past and future charities that we donate to and it will give us the ability to set up a scholarship. It will be the base of future development with combining crypto and charity.
Like transparency, safety is a popular word for projects to toss around on their websites and chat rooms. I am very active on Telegram and am in several crypto project groups. "We are the safest token on BSC" is something I have read or heard countless times. I reject that concept.
keypad gives a transparency score, not a safety score. This website shows how easy it is to find information when researching a project listed on this website. The score has little to do with a project's level of safety. There's a reason for that. There are no levels of safety in crypto.
Safety is defined as the condition of being safe from undergoing or causing hurt, injury, or loss. In crypto, safety refers to the project you're invested in still being there when you wake up in the morning. It is a trust that the dev team and project are working with integrity and in the investor's best interest.
There are no levels of safety. Either a project is safe or it isn't. It's cut and dry. Yes or no. When doing your research, understand that there is no gray area in this regard. Be direct. Ask the hard questions. Take the time to search for truth. Trust no one until that trust is earned.
How Do You Know?
By standard practice, it would be unthought-of for a new business to launch without knowing who the “brains” are behind it. Local governments require a public announcement of every executive when a corporation or DBA is filed. And, when a company “goes public” for investors, a thorough vetting process of both the people and the finances of the company is completed before the public is exposed to the risk. There is a checks-and-balances to ensure as much as possible that every investor is presented an even playing field with a sufficient level of trust in the company’s leadership to be good stewards of the peoples’ investments. Unfortunately, there is no requirement of that in the crypto space.
The beauty of decentralized finance (DeFi) is that it is both completely anonymous and yet at the same time completely transparent. While the reliance on secure peer-to-peer public ledgers allows anyone and everyone to trace where the money flows, the people behind those wallets are not required to be so visible. The ability to create a crypto wallet at the click of a button, copy-paste a new smart contract, and spin up all the standard socials like a WordPress website, Telegram account, and Twitter in just minutes means that any unknowing investor can easily be fooled and FOMO’d into falling for “the next moon” project.
The “trick” of many project owners is not to base their “company” on prudent standard-operating-procedures (SOPs) and customary business practices, but rather by playing on the emotions of those looking to get rich quick and not be left behind: the image of “wen lambo” is often an easy blinder to smart investing. It is true that even with the large swings in the crypto market, over the past decade, the average rate of return for vetted projects is greater than that of the stock market. Crypto is a “safe bet” for investors who limit their risk. Unfortunately, the desire to not miss out on the next big project means losing more money on pump-and-dumps than true utility-based projects. While there is a responsibility of the investor to do their own research (DYOR), the fact is, the crypto market is still young. The con artists prey on new investors who do not know any different. Crypto has a learning curve.
So, what’s the solution? The solution is public transparency by both those who have control of the owner’s wallet and the smart contract. A new investor must ask: Has the project done the basic right things like lock the liquidity for an extended period of time, had the contract audited by a legitimate third-party (and published the results), shown their “face” publicly and openly, created a process of regularly answering investor questions (and educating them on safe investing practices at the same time), and had the leadership team go through a KYC process by a third-party? If the answer is no to any of those, red flags should fly. If the answer is yes to all, the chance of a successful investment is greater.
The only security an investor has in the DeFi space is to know that the projects they invest in are managed by people willing to take the blame for any failure and “face the consequences” for any bad management. Likewise, this builds confidence for investors to become strong members of that coin or token’s community. Like any small business, it takes a dedicated following, as well as a solid product (aka utility) to succeed. When those in control of a project allow themselves to become the public face of it, everyone wins. Investors feel like they are part of something bigger because they build confidence in those leading the way. When crypto project owners treat their projects like companies with a duty to perform and their investors like customers at the local corner store, investors are protected, projects build a foundation to thrive, and the entire crypto space becomes stronger.