Ice-cream-themed collections of 8,888 NFTs barged into the market at the start of this year. It grabbed the community’s attention that the NFT collection, each priced at 0.04 ETH, was sold out in a few hours.
Such an NFT sale brought nothing but dismay to the investors until moments later when they found it to be a rug pull by the team. This Frosties NFT is yet another in the series of scams that took off with 335 ETH, which is about a million dollars.
Cases of rug pull are nothing new, so says the $20 billion figure lost in the past five years to rug pulls alone. Given the situation, it is natural for investors to think of avoiding risking their funds in any new projects that enter the space.
In contrast, laying apart many other challenges for the projects in the blockchain space, earning investors’ trust tops the list of predominant ones. Prospective projects that hold the potential for growth of the blockchain space, investors, and the owner deserve to be recognised.
But how do you bring it to action? Here comes the answer for that in the following passage.
Explanation of QuilAudits KYC services
There is always a way to overcome any hurdle, and KYC services offer one such means. KYC process clears out the uncertainties and anonymity of the project after a thorough background verification by the team.
QuillAudits, a leading audit firm, works ardently to secure the crypto and blockchain space. Aiming at this target, QuillAudits introduces KYC services as part of anti-money laundering efforts and establishes the legitimate project’s scope to the communities.
Under the KYC verification process, the identities of the project team are deanonymized after rigorous research into the details. Thereby this increases the accountability of the project to the investors.
KYC services are included on top of the security audit service offered by QuillAudits to improve the reliability and trust of the qualified projects in the blockchain space. KYC imparts the quality of transparency to the web3 projects.
At QuillAudits, the KYC verification procedure is organised for the smooth processing of KYC badge approval. Get a glimpse of it in the upcoming passage.
The 5 Step Process Of Getting The KYC Done For Your Project
You need to fill out the Typeform on the official page to introduce yourself to our team. It is a quick questionnaire about the project details and contact details for further proceedings. We analyse the input given, and our team reaches out to the client from the details provided.
Thereafter the following steps are carried out.
Agree to terms and conditions: We have a regulatory framework, and on mutual acceptance, we ensure the support from the client’s side for doing the KYC verification. This takes us to the next step in proving the positive intention of the project to the community members.
Submit project details: The project-related details are collected, including the additional information required for conducting an end-to-end analysis of the background. We strictly ensure the confidentiality of the data and use them only for assessing the project.
Personal ID verification: It requires submitting personal identification documents such as a passport along with a detailed video. This process confirms the individual’s identity matches the details in the proof.
Live Connect: For liveliness check, our team will connect with the project members and verify the authenticity. We look for the correctness of the document details based on a few parameters.
KYC badge certification: On passing every stage of the KYC, the anonymity of the team is comprehended, and KYC badge status is accorded.
*Disclaimer* KYC verification is no guarantee to complete security. In case of confirmation of a fraudulent move by the project team, we might end up revealing the necessary details for legal undertakings.
But, Why Though?
The beneficiaries that are brought along with the KYC status are listed below.
Trustworthy: Most importantly, KYC acquires the trust of the investors for your project that lays a solid ground to stand firm in the space.
Brand Excellence: The KYC status gains the reputation for your brand, which offers investors an opportunity to explore the potential that the project withholds.
Attract investments: Ultimately, this brings the investor crowd to the project with a strong belief to grow and reap profits.
Pressing Need For KYC services
Out of all the Web3 scams and exploits, rug pulls account for about 70% of them. Bringing here some of the rug pull events to the light that happened in the recent past.
Snowdog DAO is the largest rug pull event in Avalanche. The SDOG meme coin launched on Avalanche rug pulled the network and users for $10M.
SQUID was a crypto coin launched by taking inspiration from the Korean TV show Squid game. They were skyrocketing in prices, and two weeks later, the prices fell to $0, with the developers cashing out with $3M.
Evolved apes are a collection of 10,000 gaming NFTs. One week after the product launch, these were identified as rug pull by the scammer for 798 ETH or $2.7 million.
Big Daddy Ape club was supposed to be a 2,222 ape-themed NFTs on the Solana blockchain. It managed to rake in 9,136 SOL or $1.3M from the investors but never released the NFT at all.
Bored Bunny NFTs gained a lot of traction with celebrities talking about it. But after the collection of $21M, the creators went missing, and the floor prices started dropping low.
Luna yield is the first rug pull that ever happened in the Solana blockchain, where the developer took off with $6.7M worth of money in digital currency.
Doodle Dragons NFT sold for about 1.50 SOL and promised to donate the money to the charity, which was later identified to be a scam as the creator ran off with $30k.
Because of the anonymity of the crypto projects, it becomes nearly impossible to track the project founder who performs rug pulls or to take any action against them. These scams push investors to lose faith lose in crypto.
However, Web3 is beyond all of this and provides room for immense growth. Getting KYC-approved status can bring in a lot of benefits from instilling trust in the project.