Transparency in Web3: Avoiding Anonymity’s Pitfalls

In the high-stakes game of web3 business, you’re either in the know, or you’re out in the cold.

Investing in faceless entities?

Not on my watch.

“Here’s the deal: those web3 avatars and cryptic handles?

They’re a gamble, not a strategy. Some might call it the new norm; I call it a rookie mistake.”

It’s about more than just a name. It’s about certainty, trust, and reputation. Here are the top five reasons to play it smart and vet your web3 partners:

#1- Fraud Prevention: Confirm who you’re dealing with to sidestep scams.

#2- Legal Compliance: Stay on the right side of the law.

#3- Risk Control: Keep shady characters at arm’s length.

#4- Financial Protection: Safeguard your investments from unreliable partnerships.

#5- Reputation: Your name is your brand. Don’t let it get dragged through the mud.

I won’t make a move in web3 without thorough background checks. It’s high time the rest of the web3 world caught up.

Investing in anonymity?

Not in a million years.

Remember the Jared from Subway fiasco? Exactly. That’s what happens when you skip the homework.

I’m here for legitimate deals, not back-alley gambles.

Case in point: a multimillion-dollar investment I helped an investment group with hinged on the answer to one simple question concerning the two potential investment seeking candidates — “Who are we really investing in and dealing with?”

Guess who won?

The team with transparency, not the faceless PFP avatar driven project holding Spaces on X claiming “generational wealth” and dropping the f-bomb every 60 seconds.

I’m a big fan of web3 technology. I believe the blockchain, smart contracts, NFTs, Ordinals, DeFi, DAOs and digital currency are already changing the world. Add AI and the metaverse into the mix and I believe we’re going to see more positive changes in the next 5–10 years than we’ve seen in the last 200.

Having said that, what’s going on right now in many of the web3 projects is ridiculous.

Bottom line: In web3, do your due diligence or prepare for a downfall. Know who you’re dealing with, or you’re setting yourself up for fraud, legal nightmares, and a tarnished reputation.

What are your thoughts? What are your safety tips?

When all is said and done, play it smart and safe.

Mitch Jackson, Esq. | Lawyer and Private Mediator

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