Truth Seekers - security ratings on crypto projects

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Written by

CryptoMasterMiner

DeFi Yield Farmer Liquidity Provider Crypto Lender, Miner, Investor & Blogger

1 year ago

In community: Cryptocurrency and Blockchain(7b7f)

Topics: Cryptocurrency, Crypto, Investing, Defi, Truth seekers, ...

The Truth Seekers claim to be the "first crypto project to release security ratings on projects" and any project that helps improve security in crypto is worth looking into. The project is run by a community-lead DAO which aims to bring accountability into the crypto space with their mission of "Accountability Beyond".

While there are existing KYC and Audit firms that deal with crypto, everyone involved in DeFi and crypto knows that these companies bring little security within the industry. If a DeFi project is audited does that mean it is safe? Absolutely not. More needs to be done and hopefully the Truth Seekers can move security within crypto projects forward and make the space safer for everyone.

The collapse of FTX and Terra Luna has shined a bright spotlight on crypto in terms of the potential pitfalls. While those stories get major media attention, it is the constant rug pulls and outright scams that turn even the strongest crypto enthusiast off.

What makes Truth Seekers different?

Selective Projects - Truth Seekers is quite selective with who they work with. Projects must apply and be selected by their advisory board before they will perform a KYC and audit of the project.

Native Token Payments - Truth Seekers does not take payment for their services in the native token of the project unlike like most security firms. Obviously, after getting paid in native tokens your objective becomes to boost their value creating a conflict of interest.

100% Team KYC - Truth Seekers requires that every core team member involved in a crypto project go through the KYC project, not just the key leader(s). In addition, the country of origin has to be disclosed and they will reject third-world countries as part of the KYC process.

Truth Token - goes on sale today

The Truth Seekers have their own token, the Truth Token, which sits on the BNB Chain formerly known as the Binance Smart Chain. It utilizes deflationary tokenomics to push the price up over time along with a limited supply similar to Bitcoin. There is no buy tax, however, there is a 5% sell tax (0% if you hold for one year) of which 2.5% will be burned and they have buy back mechanics in place from some of the sell tax profits. Profits are also used to invest in validator nodes on chains like AVAX, FTM, DAG and ETH with profits generated from those investments will be used for additional token buy backs. These nodes tend to be quite expensive, out of reach for many small investors.

There will only be 11.2 million Truth tokens created and they can be purchased on PancakeSwap at an initial price of $0.60 which started at 4pm EST today (12/7/22). The supply will be broken out as follows:

7,1900,000 Pre-Sale Offering
2,000,000 Truth Seeker Team
1,000,000 Used to create LP
410,000 To purchase Nodes and for partnerships
200,000 Marketing (long-term)
400,000 Staking and other rewards

Analytics / Financial Model

Truth Seekers was built to provide security rating on crypto projects. The company produces detailed reports that cost the project between $10-$20K and they will tack on a $5K/year renewal fee. They aim to then secure seed round participation for their highest rated projects to premium members.

They offer three main services to crypto projects:

Audit as a Service - focused on contract audits looking for vulnerabilities and malicious code
Identity as a Service - verifies the identity of all core members along with wallet verification
Liquidity Locking as a Service - provides extra layer of security of investors (launching Q2 of 2023)

Seeker Wallet

Truth Seekers has their own wallet which is a proprietary software program that is designed to alert users to any risk associated with another wallet address or contract. In essence, the company has compiled a list of wallet address along with their histories and through this database provides alerts rated as low, medium or high at a cost of $0.03 per transaction. Imagine MetaMask but with some advanced security protocols built right in.

Final Thoughts

I have not personally invested in the Truth token nor do I plan too, however, any steps to add security within crypto is welcome and for that reason I'm excited about Truth Seekers. In launching my own project last month, Botz, I fully KYC'd myself and the yield farming projects we invest in to generate passive income for our NFT holders have to pass through a set of criteria which includes the team being doxed or KYC'd.

Anyone involved in crypto and DeFi knows the risks involved and anything we can do to help mitigate these risks is a positive step. Personally, I'd like to see a lot more regulation in the crypto space but until that happens we need new and better ways of accessing new projects. We will have to sit back and see exactly how the Truth Seekers perform on their audits and KYC efforts, hopefully they are much more trustworthy than those options that currently exist.

I didn't find any articles about the launch of Truth Seekers, but there are plenty of YouTube videos about the project which can be found here. Seems like a lot of YouTubers are excited about more security in the industry as well, probably because some of their reputation is tied to the projects that they promote.

I will be keeping a close eye on this project which I usually don't do unless I'm invested in the project or considering it strongly. It may seem contradictory, but we need more transparency and accountability in decentralized finance. Let's keep raising the bar which will raise confidence overall leading to increased crypto adoption levels given added legitimacy within the industry.

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