Web3 Project Risk Assessment and Fund Tracking: Key to 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 high return promises, flashy advertisements, false data, and fabricated backgrounds to gain trust. If investors are gullible and believe these promotions, they may blindly follow, ultimately leading to investment losses.

Worse still, some unscrupulous project parties may adopt deceptive marketing tactics. For example, maliciously dumping during a downturn in the cryptocurrency market, forcing investors to cut losses, thereby reaping huge profits. This behavior not only harms the interests of investors but also threatens the stability of the entire cryptocurrency market.

In response to these risks, industry-leading Web3 security companies have launched comprehensive project risk assessment services. This service conducts a thorough evaluation of Web3 projects from both on-chain and off-chain perspectives, using multiple criteria to identify potential risks and assist investors in tracking the flow of funds.

Web3 Project Risk Assessment Method

The professional security team conducts a comprehensive security assessment of the project through 17 on-chain guidelines and 9 off-chain guidelines. The evaluation process includes:

1. Collect comprehensive project information
2. Analyze on-chain fund transaction situation
3. Evaluate project promotional information
4. Determine whether the capital flow during the project's operation complies with the documentation.
5. Check if the product is executed according to the documentation.

The specific assessment content includes:

• Does the distribution of project tokens conform to the documentation description?
• Does the contract logic match the project documentation?
• Is there malicious dumping behavior?
• Are there contract privilege roles that engage in malicious profiteering?
• Official Operation Timeline Analysis

When illegal profits are confirmed from the project party, assistance can be sought through professional cryptocurrency tracking services. These services can help clients understand transaction history, including transaction amounts, times, and other information, as well as the flow of cryptocurrency funds and their transfer destinations.

Fund Tracking Service

Professional cryptocurrency tracking services mainly include two directions:

1. Project party malicious profit fund tracking

When a project party is suspected of malicious profit-making, the flow of their funds can be tracked and compared with promotional documents from different periods. By deeply analyzing malicious dumping addresses, clues about the project party can be found to help investors recover their funds.

During the tracking process, analysis will be conducted through both on-chain and off-chain methods. On-chain analysis is particularly important, involving various fund flow situations, including the source of on-chain transaction fees from the project party. To track more effectively, it is necessary to obtain as much information as possible, such as:

• The time and amount of loss incurred by users participating in the project
• The user's understanding of the project rules and promotional methods.
• Does the user participate in project-related communities?
• Does the user save project promotional materials and documents
• Has the user participated in the project's public fundraising or airdrop activities?

By utilizing professional tools and an on-chain label library, it is possible to quickly sort out information such as transaction fee sources, address balances, and trading habits. Through hierarchical analysis of tracking, the sources, destinations, and transaction addresses of funds can be determined, creating a complete funding chain, achieving on-chain address profiling, and ultimately identifying key personnel.

2. Funds Theft Tracking

When the funds of a user or project party are stolen, the first step is to confirm the stolen address, amount, and time. Subsequently, related addresses should be tracked and monitored, while utilizing a tag database to determine the flow of funds. If the funds enter an exchange, information about the attacker can be obtained through investigation and evidence collection; if the funds enter a mixing platform, deeper analysis and evidence collection are needed to identify the attacker.

Some security companies possess comprehensive cybersecurity capabilities, including Web3 on-chain and off-chain threat intelligence, as well as binary research capabilities (such as vulnerability mining, malware analysis, APT attack analysis, etc.). These integrated capabilities have significant advantages in asset tracking and attacker attribution.

Conclusion

The launch of the Web3 project risk assessment service aims to enhance the security of the entire ecosystem and prevent investors from suffering unnecessary losses. However, due to the nature of blockchain, absolute accuracy of data cannot be guaranteed. Therefore, investors still need to remain vigilant and carefully choose Web3 projects.

When selecting a project, it is recommended:

1. Carefully review the project's official documentation.
2. Gain a deeper understanding of the project's actual situation
3. Avoid blindly following the trend

If unfortunately encountering a situation where funds are stolen, one should promptly contact a professional security team to recover the funds through legal means as quickly as possible. Remember, in the Web3 world, both security awareness and professional support are equally important.