Web3 Project Risk Assessment and Fund Security Protection

Introduction

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, fake data, and fictitious backgrounds to deceive trust. If investors easily believe these promotions, it may lead to investment losses.

Some project teams also adopt deceptive marketing tactics, such as maliciously crashing the market during downturns to force investors to cut losses, thereby obtaining huge profits. This not only harms the interests of investors but also threatens the stability of the cryptocurrency market.

To address these risks, some security companies have developed comprehensive project evaluation services. These services assess project risks through multiple evaluation criteria both on-chain and off-chain, helping investors track the flow of funds.

Web3 Project Risk Assessment

Professional risk assessment teams typically conduct a comprehensive evaluation from both on-chain and off-chain perspectives, including on-chain details and off-chain details, to provide a thorough security assessment of the project parties.

The evaluation process includes:

• Comprehensive access to project information
• Analyze on-chain fund transaction situation
• Evaluate project promotional information
• Determine whether the capital flow during the project operation complies with the document description.
• Check if the token distribution is executed according to the documentation.
• Verify if the contract logic matches the content of the project documentation.
• Detect whether there is malicious dumping behavior
• Assess whether there are contract privilege roles that commit malfeasance for profit
• Review official operation timeline

When it is found that the project party is indeed making illegal profits, funds can be attempted to be recovered through professional cryptocurrency tracking services. These services can help understand the transaction history, including transaction amounts, times, and other information, as well as the direction and destination of cryptocurrency transfers.

Fund Tracking

Cryptocurrency tracking services mainly include two directions: tracking of malicious profit funds from project parties and tracking of stolen funds.

Project party malicious profit fund tracking

When the project party engages in malicious profit-making, the flow of their funds can be tracked and compared with project promotional documents from different periods. By deeply analyzing malicious dumping addresses, we can uncover clues about the project party, helping investors recover their funds.

The tracking process typically includes:

• Analyze on-chain and off-chain capital flows
• Check the source of the on-chain transaction fees from the project party.
• Analyze address balance and transaction habits
• Track the sources and destinations of funds
• Draw the complete funding chain
• Achieve on-chain address profiling
• Identify core personnel

Fund Theft Tracking

When funds are stolen from users or project parties, the first step is to confirm the stolen address, amount, and time. Then, track and monitor the relevant addresses, using a professional label library to confirm the destination of the funds.

• If funds enter the exchange, attacker information can be obtained through investigation.
• If funds enter a mixing platform, a deeper analysis and investigation are required.

Some security companies have comprehensive cybersecurity capabilities, including Web3 on-chain and off-chain threat intelligence, as well as binary research capabilities. These capabilities cover areas such as vulnerability exploitation, malicious code analysis, APT attack analysis, and forensic investigations, providing significant advantages in asset tracking and attacker attribution.

Summary

The Web3 project risk assessment service aims to enhance Web3 security and prevent investors from incurring losses due to blind investments. However, due to the characteristics of blockchain, it is impossible to guarantee complete accuracy of the data. Therefore, investors must remain vigilant and carefully select Web3 projects.

When choosing a Web3 project, it is recommended:

1. Carefully review the project's official documentation and other information.
2. Gain an in-depth understanding of the project's true situation.
3. Avoid blindly following others' advice

If unfortunately you encounter theft of funds, you should seek help from a professional security company in a timely manner to recover the funds as soon as possible through legal means. Timely action is crucial for successfully recovering the funds.