Its challenging to find players who abide by the book in this largely unregulated arena to prevent such activities effectively. However, there are indicators of trustworthiness that can help identify projects operating by the book, such as audits from recognized audit houses like CertiK.
Earlier this year, we highlighted the top five projects based on their Trust scores, and among them, CryptoUnity stood out as the leading project. But what exactly is CryptoUnity, and what sets it apart from the rest of the crypto space？ We decided to dive further.
CryptoUnity is an educational platform coupled with a centralized crypto exchange that caters to beginners. What distinguishes them from other centralized exchanges (CEXs) is the inclusion of a cold wallet, a vital element of decentralization where users have control over their keys and coins.
Remarkably, CryptoUnity is one of the first CEXs that does not hold users funds; instead, these are managed by an external, highly regulated custodian. This complete segregation of user funds and company assets indicates a refreshing change in the crypto industry while eliminating the need for blind trust from the users and ensuring that those funds cannot be manipulated.
In traditional finance, the segregation of assets is commonplace, but unfortunately, this practice is yet to become a standard regulation in the crypto industry. CryptoUnity, however, is leading the charge toward such regulatory compliance. Instead of opting for a jurisdictional haven, the project is registered and licensed in Slovenia, where it operates. This shows a commitment to transparency, compliance, and strong governance.
Our further exploration reveals that the trust score bestowed upon CryptoUnity by CertiK is genuinely reflected in various aspects, including the transparency and accessibility of their team.
The team is not only visible with regular appearances at conferences and live community meets, but they are also intimately connected with their community. Additionally, they maintain an active presence in their main Telegram group – not merely via moderators but in direct engagement. Given that, their AMA (Ask Me Anything) sessions and responsiveness have earned them significant kudos from the community.
All of these indicate that CryptoUnity is an exemplary model for how a crypto startup should be run, showcasing a strong sense of responsibility by adhering to regulations, evident through their segregated funds and company registration in reputable jurisdiction.
The practices adopted by this breed of startups are indicative of a maturing industry. There‘s a growing focus on embracing responsibility, adhering to regulations, and preparing for what’s next in the blockchain space. This paradigm shift is also nudging the standard for centralized exchanges towards a more user-centric approach, with increased emphasis on safety, transparency, and community engagement.
Adopting such values – not managing funds directly, ensuring safety, and maintaining a strong community focus – is a step in the right direction for every player in this field. With this trend, we can expect a future where the crypto industry is safer, more transparent, and accessible to all.