1/ You know you’re not the next FTX.
Your community doesn’t.
Trust in web3 (& crypto specifically) is decimated. This affected all of us.
Including you.
Here’s what you can do about it 🧵
Your community doesn’t.
Trust in web3 (& crypto specifically) is decimated. This affected all of us.
Including you.
Here’s what you can do about it 🧵
2/ Did you know that most crypto companies with a token operate their token reserve through spreadsheets right now?
Even if they’re well intentioned – their processes & security are not always to the standard of venture investment.
Even if they’re well intentioned – their processes & security are not always to the standard of venture investment.
3/ In many ways, Web3 is at the forefront of technology. We’re disrupting industries. We’re inspiring people to question… everything.
But we’re overlooking basic principles of security, compliance, and transparency.
But we’re overlooking basic principles of security, compliance, and transparency.
4/ There are some “low hanging fruit” best practices that we should have adopted from web2.
Well before now👇
Well before now👇
5/
1. Protected System Integrity
AKA bank-grade security around token reserve wallet access.
/Recipients must be validated by several signatories
/Send only large amount to validated recipients
/No transfer allowed without at least 2 signatures
1. Protected System Integrity
AKA bank-grade security around token reserve wallet access.
/Recipients must be validated by several signatories
/Send only large amount to validated recipients
/No transfer allowed without at least 2 signatures
6/
2. Disclose Your On-Chain Addresses
If token projects were disclosing their managed on-chain addresses/smart contracts, the community of crypto investigators (yes it is a real thing) would be able to #followthemoney.
2. Disclose Your On-Chain Addresses
If token projects were disclosing their managed on-chain addresses/smart contracts, the community of crypto investigators (yes it is a real thing) would be able to #followthemoney.
7/ Case in point: if we knew Alameda Research’s and FTX’s wallet addresses, the community would have seen some shady behaviors!
8/
3. Choose a secure solution to hold your token
We see it all - billion dollar worth of tokens are held by projects in addresses managed by single Metasmask. Or worse, on centralized exchanges🤯
Haven’t you heard of multisig wallets?
3. Choose a secure solution to hold your token
We see it all - billion dollar worth of tokens are held by projects in addresses managed by single Metasmask. Or worse, on centralized exchanges🤯
Haven’t you heard of multisig wallets?
9/ Developing a hygiene routine regarding the custody of your reserve tokens is critical.
10/
4. Build a Secured Token Reserve Infrastructure
On top of the proper token holding solution, you need to implement an infrastructure of wallets/addresses/people to make hacks, rug pulls & internal malpractices more difficult.
All while balancing security & convenience.
4. Build a Secured Token Reserve Infrastructure
On top of the proper token holding solution, you need to implement an infrastructure of wallets/addresses/people to make hacks, rug pulls & internal malpractices more difficult.
All while balancing security & convenience.
11/ If FTX has taught us anything –– it’s that concerns with crypto go beyond scams.
Crypto projects have billions of dollars worth of treasury in digital assets, but they are managed by very small (and sometimes inexperienced, unsophisticated) groups.
Crypto projects have billions of dollars worth of treasury in digital assets, but they are managed by very small (and sometimes inexperienced, unsophisticated) groups.
12/ This asymmetry is scary. We need to equip our projects with better tools to ensure by-design security and compliance.
That’s why we build Lancelot – the gold standard of token management.
That’s why we build Lancelot – the gold standard of token management.
13/ We make your life easier – with features like human-readable labels, verified wallet addresses, full integration with Gnosis Safe, and more.
Get whitelisted: lancelotlabs.xyz
Get whitelisted: lancelotlabs.xyz
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