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Web3 Project Risk Assessment and Fund Tracking: Key to Protecting Digital Asset Security
Web3 Project Risk Assessment and Fund Tracking: The Importance of Asset Security
With the rapid development of blockchain technology, Web3 projects are receiving increasing attention. However, some unscrupulous project parties attract investors through false advertising and excessive marketing. They may use promises of high returns, flashy advertisements, false data, and fabricated backgrounds to deceive trust. If investors are too gullible to believe these promotions, they may blindly follow, ultimately leading to losses.
Worse still, some unscrupulous project parties may adopt deceptive marketing tactics. For example, they maliciously dump prices during market downturns, forcing investors to cut losses, thereby profiting significantly. This not only seriously harms the interests of investors but also threatens the stability of the digital currency market.
To address these risks, a professional security team has developed a Web3 project risk assessment service. This service comprehensively assesses project risks from both on-chain and off-chain perspectives through multiple criteria. The on-chain assessment includes 17 criteria, while the off-chain assessment includes 9 criteria, allowing for a comprehensive security evaluation of the project parties.
During the evaluation process, the security team will analyze on-chain fund transaction conditions and project promotional information to determine whether the fund flow during the project's operation matches the documentation description. This specifically includes: whether the token distribution is executed as per the documentation, whether the contract logic matches the project documentation, whether there are malicious dumping behaviors, whether there is abuse of contract privilege roles, and the official operation timeline, etc.
When it is confirmed that the project party has illegal profits, help can be sought through cryptocurrency tracking services. This service can help clients understand transaction history, including transaction amounts, times, and other information, as well as the flow of funds and the destination of the cryptocurrency.
Taking a certain project as an example, this project has issues such as uncertainty in token distribution and discrepancies between the white paper description and the actual progress. After blindly purchasing tokens, investors suffered significant financial losses due to malicious dumping by the project team. After receiving requests from investors, the security team analyzed the project's operational status and tagged addresses that may have participated in the dumping for tracking.
Cryptocurrency tracking services mainly include two directions: tracking of malicious profit funds by project parties and tracking of stolen funds.
In cases where the project party maliciously profits, the tracking team will analyze promotional documents of the project from different periods, utilize fund tracking technology for in-depth analysis of malicious sell-off addresses, look for traces of the project party, and assist investors in recovering funds.
During the tracking process, obtaining more information helps to improve the tracking effect. For example, understanding the time and amount of loss users have participated in the project, the degree to which users understand the project rules and promotional methods, whether they participate in project communities, whether they retain project promotional materials, and whether they have participated in project-related activities, etc.
The professional tracking team will use internal tools and an on-chain label database to quickly sort out information such as the source of transaction fees, balances, and trading habits of suspicious addresses. Through hierarchical analysis, the sources, destinations, and transaction addresses of funds can be traced, mapping out a complete funding chain, achieving on-chain address profiling, and ultimately identifying key personnel.
In the case of funds being stolen, after confirming the stolen address and amount, related addresses will be tracked and monitored, while utilizing a tagging database to confirm the flow of funds. If the funds enter an exchange, information about the attacker can be obtained through investigation; if the funds enter a mixing platform, a more in-depth analysis and evidence collection will be needed to identify the attacker.
It is worth mentioning that some security companies have comprehensive cybersecurity capabilities, covering Web3 on-chain and off-chain threat intelligence, binary research (including vulnerability mining, malicious code analysis, APT attack analysis, etc.), and traditional web security (such as penetration testing, red-blue team exercises, etc.). These integrated capabilities can provide significant advantages for asset tracking and attacker attribution when conditions permit.
Although Web3 project risk assessment services can enhance security, the characteristics of blockchain prevent the guarantee of absolute data accuracy. Therefore, investors must remain vigilant and carefully select Web3 projects. Before investing, they should thoroughly review the project's official documentation and gain a deep understanding of the project's background to avoid blindly following trends.
If unfortunately funds are stolen, investors can seek help through legal means, quickly contacting professional security teams to try to recover the funds. Only by maintaining a cautious attitude and fully understanding the risks can one better protect their digital asset security.