• Crypto companies can provide improved transparency for their customers by using public ledgers, proof of reserves, and promoting and encouraging the use of decentralized solutions such as noncustodial wallets.
• Transparency is essential for the crypto industry to grow, as the biggest negative perception many in the public still have is that transactions happen out of public view for the benefit of a few bad actors.
• Fifteen members of Cointelegraph Innovation Circle discussed ways crypto companies can provide improved transparency for their customers.
In the midst of a bear market, the crypto industry was thrown into turmoil when a debacle at FTX hit the headlines. This once again highlighted 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. Whether it’s fair or not, this negative reputation of crypto is something honest crypto leaders and companies will have to overcome.
One way to do this is by ensuring current customers know what’s going on with the assets they’ve invested and that potential investors clearly understand the potential the industry offers. To that end, fifteen members of Cointelegraph Innovation Circle discussed ways crypto companies can provide improved transparency for their customers.
The most important thing for crypto companies to do is to use public ledgers and proof of reserves. This means having regular internal and external financial audits that are made public, so everyone knows what is happening with the company’s finances. This will give customers confidence in the company and help to build trust.
Another way to increase transparency is to promote and encourage 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 over their funds. This means that they don’t have to rely on a third-party custodian to hold their funds, which can be a source of worry for some customers.
It’s also important for companies to be open and honest about the risks associated with investing in crypto. This means providing clear information on the potential rewards and risks of investing in crypto and making sure customers are aware of the risks before they make any investments.
Finally, crypto companies need to make sure they are compliant with all applicable laws and regulations. This means ensuring they have all the necessary licenses and permits in place and abiding by all the relevant rules and regulations. It’s also important to be transparent about any changes in the law and to keep customers informed of any new regulations or laws that might affect them.
Overall, it’s clear that transparency is essential for the crypto industry to grow and prosper. Companies need to ensure customers know what’s going on with their investments, and potential investors need to understand the potential of the industry. By using public ledgers, proof of reserves, and promoting and encouraging the use of decentralized solutions such as noncustodial wallets, crypto companies can provide improved transparency for their customers and help to build trust in the industry.