Web3 Project Risk Assessment and Fund Tracking: A Dual Insurance for Protecting Investor Rights

The Importance of Risk Assessment and Fund Tracking in Web3 Projects ###

With the rapid development of blockchain technology, Web3 projects are increasingly gaining attention. However, some unscrupulous project teams attract investors through false advertising and excessive marketing, leading to blind following by investors and resulting in losses. Moreover, some project teams maliciously dump their assets during market downturns, forcing investors to sell at a loss for profit. This not only severely damages the interests of investors but also threatens the stability of the entire cryptocurrency market.

To address these risks, some security companies have launched risk assessment services for Web3 projects. These services conduct comprehensive evaluations of projects through multiple criteria across both on-chain and off-chain dimensions, identifying potential risks and assisting investors in tracking the flow of funds. The evaluation content includes whether the project token distribution aligns with the documentation, whether the contract logic matches the project documentation, whether there are malicious dumping behaviors, and whether there is any abuse of contract privileged roles.

When it is confirmed that the project party has engaged in illegal profit-making, investors can seek cryptocurrency tracking services. These services can help clients understand transaction history and fund flows, including details such as transaction amounts, times, as well as the direction and destination of cryptocurrency transfers.

The two main directions of fund tracking

1. Malicious Profit Tracking of Project Parties: When the project party is suspected of malicious profit-making, a thorough analysis of its fund flow can be conducted. By comparing promotional documents of the project from different periods and using fund tracking technology to deeply analyze suspicious addresses, clues about the project party can be sought to assist investors in recovering funds. This process involves both on-chain and off-chain tracking methods, with on-chain analysis being particularly important, including analyzing various fund flow situations such as the source of on-chain transaction fees for the project party.

2. Tracking Stolen Funds: When users or project parties encounter stolen funds, they must first confirm the stolen address, amount, and time. Subsequently, track and monitor the relevant addresses while using a professional tagging library to confirm the flow of funds. If the funds enter an exchange, attacker information can be obtained through investigation and evidence collection; if the funds flow into a mixing platform, more in-depth analysis and evidence collection are needed. Some security companies have comprehensive cybersecurity capabilities, including Web3 on-chain and off-chain threat intelligence, binary research capabilities (such as vulnerability mining, malicious code analysis, APT attack analysis, etc.), as well as traditional web security capabilities, which provide significant advantages for asset tracking and attacker tracing.

Conclusion

Although the risk assessment services for Web3 projects aim to enhance the security of the Web3 ecosystem, the characteristics of blockchain prevent the absolute accuracy of data from being guaranteed. Therefore, investors must remain vigilant and carefully choose Web3 projects. Before making investment decisions, they should thoroughly review the project's official documentation and gain a deep understanding of the project's background to avoid blindly following trends. In the unfortunate event of funds being stolen, one should promptly contact a professional security team to recover the funds through legal means.

In summary, risk assessment and fund tracking are important tools for protecting investors' asset safety in the Web3 field. Investors should make full use of these tools while cultivating their own risk awareness and judgment ability to move forward steadily in this emerging field full of opportunities and challenges.