diff --git a/applications/Project_CryptoAegis.md b/applications/Project_CryptoAegis.md new file mode 100644 index 00000000000..f3813e9ef41 --- /dev/null +++ b/applications/Project_CryptoAegis.md @@ -0,0 +1,288 @@ +# Crypto Aegis + +- **Team Name:** Athena Intelligence +- **Payment Address:** Wallet: 14i9EFH8PFE6fk3UrriguyegrqSs5hpxXJ6mvtW3Ci5qzfS8 in USDT specifically for Polkadot +- **Level:** 3 + +## Project Overview :page_facing_up: + +### Overview + +**Crypto Aegis: Present and defend legitimate and favourable crypto and blockchain projects.** + +As the crypto world enters a new bull market, it has to far been dominated by meme coin and by fraudulent projects on the Solana blockchain. Such projects are undermining the credibility of the crypto and blockchain ecosystems. We propose to help Polkadot in its positioning as the trusted blockchain for serious and credible projects. +We will do so by conducting ten professional due diligence on the 10 largest projects (by marketcap) that are exclusively on the Polkadot chain. These reports will then be distributed throughout our network and can also be distributed through your network. + +With Crypto Aegis' Due Diligence service, our experts detect any red flags regarding a project's team, company history, assets, legal aspects, finances and reputation. This service includes an in-depth analysis of the project's token or coin offering. You will then receive a detailed report that will enable you to make the necessary changes to bring the project up to an exemplary standard. Once these changes have been made, official certification is granted so that the project can prove and justify its claims to current and potential future stakeholders, including investors. + +Our project will be an asset for Substrate, Polkadot and Kusama, as it will enable them to assess the reliability and security of projects that are grafted onto it. Finally, the certification provided by Crypto Aegis is designed to boost user confidence in the blockchain. + +Our mission is to help Polkadot and the projects that are on its blockchain to be perceived by current and future investors as the blockchain of choices for credible, serious and reliable projects. + +Some of our reports are available on our official website : https://cryptoaegis.io/ + +### Project Details + +Crypto Aegis aims to enhance user confidence in blockchain projects by delivering essential information, ensuring investors have access to accurate data. Our work is centered on providing factual information and does not serve as financial advisory services. + +### Guidelines for conducting due diligence on projects + +**Hypothesis and questions about the Team:** +**Hypothesis:** Projects with an experienced and transparent leadership team are more likely to succeed and have lower risks of fraud. +- What is the level of experience and professional background of the key team members? +- Have there been any previous successes or failures involving these team members? +- Do any team members have a criminal record related to similar activities? + +**Hypothesis and questions about the Company Context:** +**Hypothesis:** Projects with a clear and transparent corporate structure, registered in transparent jurisdictions, have additional credibility. +- Are there any evidence that the project and its key individuals have been involved in credit or bankruptcy issues? +- Is there a corporate architecture behind the project? +- Are the companies involved in the project registered in transparent jurisdictions? + +**Hypothesis and questions about the Assets:** +**Hypothesis:** Projects with tangible and verifiable assets provide increased security for investors. +- What types of assets support the project and how are they verified? +- What is the project's tokenomics? + +**Hypothesis and questions about Legal Aspects:** +**Hypothesis:** Projects compliant with local and international regulations are less likely to encounter legal obstacles, making them more reliable for investors. +- Is the project compliant with local and international laws and regulations? +- What are the identified potential legal risks and how are they managed? + +**Hypothesis and questions about Finances:** +**Hypothesis:** Projects with transparent accounting and known key investors are strong indicators of the project's reliability. +- Does the project have regular financial reports freely available? +- Who are the investors in the project? + +**Hypothesis and questions about Reputation:** +**Hypothesis:** Projects with a positive reputation in the crypto community and a track record of no major security incidents are perceived as safer. +- What is the project's perception in the crypto community? +- Are there any records of security issues or controversies associated with the project? + +### The methodology for onducting due diligence on projects +**1. Data Collection** +- **Public Records:** Review public records, including court documents and financial filings. +- **Third-party Reports:** Analyze reports from financial analysts, legal advisors, and market researchers. +- **Media Analysis:** Examine media coverage and social media channels for mentions and discussions about the project. +- **Interviews:** Conduct interviews with the project's key team members, advisors, and major stakeholders. + +**2. Verification Process** +- **Background Checks:** Perform thorough background checks on the team members, including verifying educational and professional credentials and searching for any criminal records. +- **Legal Compliance:** + - Review the project's registration documents and compliance certificates. + - Check for any involvement in legal disputes, credit issues, or bankruptcy filings. +- **Asset Verification:** + - Confirm the existence and ownership of tangible and digital assets supporting the project. + - Analyze the tokenomics and ensure it aligns with industry standards and project claims. + +**3. Financial Analysis** +- **Financial Statements:** + - Review audited financial statements to assess the project's financial health. + - Evaluate revenue streams, funding sources, and expenditure patterns. +- **Investor Analysis:** + - Identify key investors and assess their credibility and investment history. + - Evaluate the level of investment and potential conflicts of interest. + +**4. Reputation Assessment** +- **Community Feedback:** Collect and analyze feedback from the crypto community through forums, social media, and review sites. +- **Incident History:** Investigate any past security incidents, controversies, or scandals associated with the project. +- **Market Perception:** Analyze the overall market perception and sentiment towards the project. + +**6. Reporting** +- **Comprehensive Report:** Compile all findings into a detailed report covering each area of investigation. Be clear and concise. + +### The data collection and analysis procedures + +The due diligence process begins with a comprehensive data collection phase, which involves gathering information from multiple sources. This includes reviewing public documents such as court documents and financial records, analysing third-party reports from financial analysts and legal advisors, and reviewing media coverage and social media discussions about the project. + +Once the data has been collected, an in-depth analysis is carried out to check the accuracy and reliability of the information. Background checks are carried out on team members to confirm their educational and professional qualifications and to check for any criminal records. Legal compliance is assessed by examining registration documents and certificates of compliance, and checking that there are no legal disputes or financial problems. Asset verification ensures that the project's physical and digital assets are legitimate and properly accounted for. Financial analysis includes reviewing audited financial statements, assessing revenue streams, funding sources and investor credibility. Finally, reputation assessment includes analysis of community feedback, incident history and overall market perception to provide a comprehensive assessment of the project's viability and risks. + +To ensure accuracy, the team will double-check the results through independent verification, where separate team members re-examine key data sources and findings. Additionally, the results will undergo a peer review process within the team, ensuring multiple layers of scrutiny and validation. This rigorous approach ensures the reliability and reproducibility of the data analysis, maintaining high standards of due diligence. + +### Relevant related work + +Some of our reports are available on our official website: https://cryptoaegis.io/. + +Here are a few examples: +- https://cryptoaegis.io/audits/Due%20Diligence%20-%20VEGS%20-%202024-01-19.pdf +- https://cryptoaegis.io/audits/Due%20Diligence%20-%20Blockchain%20Capital%20-%202023-05-25.pdf +- https://cryptoaegis.io/audits/Due%20Diligence%20-%20Sphere%20Finance%20-%202022-05-13.pdf + +You can also see a few example of press mention that our work has generated: + +### Intended venue for results publication and the timeline for publication + +We plan to publish our report on our Crypto Aegis website (https://cryptoaegis.io/). We believe that two reports per month would be a good frequency of publication. + +### What your project is *not* or will *not* provide or implement + +Our reports are not financial advice nor an insurance against risk. The advice and recommendations presented in the reports are neither a guarantee of future results on the part of Athena Intelligence SA, nor an insurance against risk. Indeed, our research and analysis represents Athena Intelligence SA's best judgement and is based solely on information that was publicly available at the time of writing. However, we insist that this is not financial advice and readers are invited to carry out their own research. + +## Ecosystem Fit + +### Where and how does your project fit into the ecosystem? + +Crypto Aegis would mainly fit in the governance aspect of Polkadot, offering precise details about crypto projects, Parachains and Bridges for the whole ecosystem to make informed choices. This is turn, would also give full transparency on projects in the Polkadot ecosystem. + +### Who is your target audience (parachain/dapp/wallet/UI developers, designers, your own user base, some dapp's userbase, yourself)? + +Our target audience is broad and inclusive, aimed at anyone involved in the crypto and blockchain space who is looking to avoid scams or being misled by shoddy projects. This includes individual investors who need reliable information to make informed decisions and avoid fraudulent projects. In addition, crypto-currency enthusiasts and community members can rely on our services to verify the legitimacy of projects they wish to support or participate in. Finally, our efforts extend to educating and protecting the general public, whether newcomers or experienced participants, from falling victim to scams or untrustworthy projects. By serving this wide range of users, Crypto Aegis aims to strengthen the overall security and integrity of the cryptographic ecosystem, promoting a safer environment for all stakeholde. + +### What need(s) does your project meet? + +In the blockchain industry, project backgrounds often lack transparency, creating opportunities for fraud and scams. Our services aim to counter this by providing clear insights into project backgrounds, enhancing transparency and mitigating risks. + +### Are there any other projects similar to yours in the Substrate / Polkadot / Kusama ecosystem? + +To our knowledge, there is currently no project in the Substrate, Polkadot or Kusama ecosystems that offers a full due diligence service like Crypto Aegis. While there are many projects focused on security, auditing and providing various types of support for blockchain development, none seem to combine the detailed investigation approach and certification process that we provide. + +Crypto Aegis stands out for its holistic and in-depth approach to due diligence. Our service goes beyond basic security audits by conducting in-depth investigations into a project's team, company history, assets, legal aspects, finances and reputation. + +By addressing a broader spectrum of due diligence needs and integrating them into a single, cohesive service, Crypto Aegis fills a unique niche within the Substrate, Polkadot and Kusama ecosystems, contributing to a more secure and trustworthy environment for all participants. + +## Team :busts_in_silhouette: + +### Team members + +- **Name of team leader:** Jonas Rey + +Jonas Rey is a distinguished expert in intelligence and due diligence, with a strong background in the financial and blockchain sectors. As the founder of Athena Intelligence, Jonas has dedicated his career to enhancing transparency, security, and trust within complex industries. Known for his analytical skills and strategic insights, he has successfully led numerous high-profile investigations and risk assessments, earning a reputation for excellence and reliability in the field. + +### Contact + +- **Contact Name:** Jonas Rey +- **Contact Email:** contact@athenaintelligence.ch +- **Website:** https://cryptoaegis.io/ + +### Legal Structure + +- **Registered Address:** Rue de l'Ancien-Port, 14, Geneva, 1201, Switzerland +- **Registered Legal Entity:** Public limited company - Aktiengesellschaft (AG) + +### Team's experience + +Our team comprises seasoned experts in due diligence and investigation, bringing years of experience in uncovering critical information and assessing risks. We specialize in providing thorough, accurate, and confidential insights to support informed decision-making. Our meticulous approach ensures comprehensive analysis and reliable results for our clients. + +### Team LinkedIn Profiles + +- https://www.linkedin.com/in/jonas-rey-143930211/ +- https://www.linkedin.com/in/amanda-grudinskas-6185166/ +- https://www.linkedin.com/in/renaud-bartolini-45522340/ +- https://www.linkedin.com/in/alexandre-lavassani-87baa2128/ +- https://www.linkedin.com/in/gcpb/ + +## Development Status: open_book: + +Crypto Aegis is an established project dedicated to improving transparency, security and trust in the crypto and blockchain sectors through comprehensive due diligence and analysis. Our aim is to continually evolve and expand our methodologies to address the dynamic and complex landscape of the crypto world. + +Our project has been featured by various media outlets since its inception. You can read our press articles on our press page (https://cryptoaegis.io/index.php?page=press). + +Our detailed reports on various crypto and blockchain projects highlight our rigorous approach to due diligence. These reports are available on our reports page (https://cryptoaegis.io/index.php?page=reports), highlighting our expertise and impact. + +Crypto Aegis is committed to developing, refining and multiplying its services with the help of the grant we are applying for. Its ongoing development will help us continue to support the growth and integrity of the crypto ecosystem, enabling investors, developers and other stakeholders to navigate this complex field with confidence. + +## Development Roadmap :nut_and_bolt: + +### Overview + +- **Total Estimated Duration:** 8 months renewable +- **Full-Time Equivalent (FTE):** 1 FTE +- **Total Costs:** 100,000 USD + +## Research projects + +### Problem(s) to Investigate + +1. **Fraudulent Projects:** Identifying and preventing scams within the crypto space to protect investors. +2. **Lack of Transparency:** Increasing transparency of crypto projects' team, financial health, and legal standing. +3. **Insufficient Due Diligence:** Providing thorough due diligence services that investors lack the resources to perform themselves. + +These issues are crucial as they impact the trust and viability of the entire blockchain ecosystem, affecting both investor confidence and the integrity of legitimate projects. + +### Research Questions/Hypotheses + +1. **Team Hypothesis:** Projects with experienced and transparent leadership are less likely to fail or engage in fraud. + - What is the professional background of key team members? + - Have they been involved in successful projects previously? + - Do they have any criminal records related to similar activities? + +2. **Company Context Hypothesis:** Clear and transparent corporate structures registered in reputable jurisdictions are more credible. + - Are there credit or bankruptcy issues linked to the project or key individuals? + - Is there a well-defined corporate structure? + - Are the companies involved registered in transparent jurisdictions? + +3. **Assets Hypothesis:** Projects backed by tangible, verifiable assets provide more security for investors. + - What types of assets back the project? + - How are these assets verified? + - What is the project's tokenomics? + +4. **Legal Aspects Hypothesis:** Projects compliant with local and international regulations face fewer legal hurdles. + - Is the project legally compliant? + - What potential legal risks are identified and how are they managed? + +5. **Financial Hypothesis:** Transparency in accounting and known investors indicate project reliability. + - Are financial reports available and transparent? + - Who are the project's investors? + +6. **Reputation Hypothesis:** Projects with positive reputations and no major security incidents are perceived as safer. + - What is the project's reputation within the crypto community? + - Are there any security issues or controversies associated with the project? + +### Methodology + +1. **Data Collection** + - **Public Records:** Review court documents and financial filings. + - **Third-party Reports:** Analyze financial analyst reports, legal advisor assessments, and market research. + - **Media Analysis:** Examine media coverage and social media discussions. + - **Interviews:** Conduct interviews with key team members, advisors, and stakeholders. + +2. **Verification Process** + - **Background Checks:** Verify educational and professional credentials and check for criminal records. + - **Legal Compliance:** Review registration documents, compliance certificates, and check for legal disputes, credit issues, or bankruptcy filings. + - **Asset Verification:** Confirm existence and ownership of assets and analyze tokenomics. + +3. **Financial Analysis** + - **Financial Statements:** Review audited financial statements to assess financial health. + - **Investor Analysis:** Identify and assess key investors' credibility and investment history. + +4. **Reputation Assessment** + - **Community Feedback:** Collect and analyze feedback from forums, social media, and review sites. + - **Incident History:** Investigate past security incidents, controversies, or scandals. + - **Market Perception:** Analyze overall market perception and sentiment. + +### Data Collection and Analysis Procedures + +The due diligence process begins with gathering data from multiple sources such as public records, third-party reports, media, and interviews. This data is then rigorously analyzed to ensure accuracy and reliability. Background checks are performed on team members, legal compliance is verified, and asset ownership is confirmed. Financial statements are reviewed to assess the project's health, and the credibility of key investors is evaluated. Community feedback, incident history, and market perception are also examined to provide a comprehensive assessment. + +### Expected Results and Double-Checking + +The expected result is a detailed, accurate report on the project's viability and risks. To ensure accuracy, results will be double-checked through independent verification by separate team members re-examining key data sources and findings. The results will also undergo a peer review process within the team, ensuring multiple layers of scrutiny and validation. This approach ensures the reliability and reproducibility of the data analysis. + +### Relevant Related Work + +A thorough literature review will be conducted to identify existing research and reports related to our study. This will include academic papers, industry reports, and case studies. The review will help position our work within the broader context of crypto project analysis and due diligence. + +### Intended Venue for Results Publication and Timeline + +We plan to publish our reports on the Crypto Aegis website (https://cryptoaegis.io). The goal is to release one or two reports per month, ensuring timely and relevant information for our audience. Regular updates and publications will help maintain transparency and keep stakeholders informed about the latest findings and project evaluations. + +## Future Plans + +### Short-term plans + +- **Improvement and expansion:** We want to create a real recognized certification label “Crypto Aegis” with the aim of being a reference in terms of security and transparency in the crypto and blockchain environment. Our goal is to certify the most projects we can (cover more blockchain networks and a wider range of project types). + +- **Promotion:** We want to actively promote our work through social media and partnerships with blockchain organizations to gain visibility. + +### Long-term plans + +- **Technology Integration:** We plan to integrate advanced technologies such as AI and machine learning to update records. + +## Referral Program (optional) :moneybag: + +- **Referrer:** Name of the Polkadot Ambassador or GitHub account of the Web3 Foundation grantee. +- **Payment Address:** Polkadot/Kusama (USDT) payment address. Please also specify the currency. (e.g. 15oF4... (USDC)) + +## Additional Information :heavy_plus_sign: + +We learned about the grant program on the Web3 Foundation website itself.