Can Pseudonymous Crypto Founders Be Trusted?

Nakamoto’s pseudonym inspired other cryptocurrency engineers to use screen names. But are there risks with pseudonymous founders in crypto?

The Difference Between Anonymous and Pseudonymous

An anonymous person can speak or operate without being identified because they use multiple identities every time.

A pseudonymous person conducts business, but their actual identification and background are still hidden or unknown.

The pseudonymous founder of Bitcoin is Satoshi Nakamoto, but no one knows the actual name behind Satoshi. And it’s not even known if Nakamoto was the only founder behind Bitcoin or it was a team of individuals.

Pseudonymous Crypto Entities

There are times when we have no idea who is behind a cryptocurrency or project. At first, this did not seem like a problem. It did not bother anyone that the founder of Bitcoin was pseudonymous.

Risks With Pseudonymous Founders in DeFi

Compared to a cryptocurrency token, DeFi has a broader impact since it attempts to recreate the entire financial system on the blockchain. If someone launches a scam token, only the people who bought the token will lose money.

However, since DeFi involves borrowing money, staking, trading assets, and lending, the ramifications of an unscrupulous individual could have broader impacts.

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