Crypto Companies Must Provide Transparency for Customers to Grow
13. Januar 2023
• Encourage the use of non-custodial wallets to ensure customers have full control and ownership of their assets
• Use public ledgers and proof of reserves with regular internal and external financial audits that can be made public
• Provide transparency around transactions, projects and technologies to help the crypto industry grow
The crypto industry has had its fair share of ups and downs, and the last story wanted to see hit the headlines was the debacle at FTX. It was a story centered on the biggest negative perception many in the public still have of the crypto industry: that transactions regularly happen out of public view for the benefit of a handful of bad actors and at the expense of customers.
In order to overcome this negative reputation, honest crypto leaders and companies must ensure current customers know what’s going on with the assets they’ve invested and that potential investors clearly understand the potential the industry offers. In order to do this, crypto companies must provide improved transparency for their customers.
Cryptocurrency-based companies, as well as Web2 and traditional businesses looking at moving their models to blockchain, should use public ledgers and proof of reserves coupled with regular internal and external financial audits that are made public. This will help to ensure customers are able to keep track of the assets in their wallets and can be confident that their investments are safe and secure.
Another way crypto companies can provide improved transparency is by promoting and encouraging the use of decentralized solutions such as noncustodial wallets. By using noncustodial wallets, customers are able to control their own private keys and have full control and ownership of their assets. This can also help to ensure that their investments are secure and safe from malicious actors.
Finally, crypto companies should provide full transparency around transactions, projects and technologies. This is the only way for the crypto industry to grow and expand as an industry. By being transparent, customers and potential investors can be sure that their investments are secure and that the projects they are investing in are legitimate and have the potential to be successful.
At the end of the day, the crypto industry must ensure that customers have full transparency and understanding of what is going on with their investments. By utilizing public ledgers and proof of reserves, encouraging the use of noncustodial wallets, and providing transparency around transactions, projects, and technologies, crypto companies can provide improved transparency for their customers. By doing so, the crypto industry can continue to grow and expand as an industry and become more trusted by the public.