PwC’s New Blockchain Analytics Tool Will Help Track ICO Tokens
Over the past six months, the ICO market has been a huge slowdown especially after multiple reports of fraud and cheating emerged lately. Earlier this year, auditing firm Ernst and Young released a report showing that $400 million worth funds have been stolen in ICOs last year.
However, it looks like accounting firm Pricewaterhouse Coopers (PwC) is willing to change this scenario. PwC is reportedly testing a new blockchain analytics tool which helps investors to trace their digital tokens after being launched. Moreover, the tool is also said to help companies to guard their digital assets and prevent its misuse for other illicit activities.
PwC is working along with Eric Young - its forensic services partner in Hong Kong and if reports are to be believed the two companies are willing to capitalize on the recent migration of many cryptocurrency companies to Singapore and Hong Kong. In the wake of strict regulatory measures imposed by China and South Korea, many firms have been shifting their base to other crypto-friendly locations in the last few months.
Mr. Young while explaining this analytics tool said: “While on the blockchain ledger one could track the amount of transactions that have been done using the cryptocurrencies, there is still no way for an issuer of an ICO to trace its coins and know how these coins are being used.”
He further added that “With artificial intelligence built into our back engine, our solutions would enable clients to better predict which jurisdictions the digital token could potentially be circulated to. Depending on the type of company and the type of business it is engaged in, it could then apply a high-risk score to that particular jurisdiction.”
In the past six months, PwC has been seen working with several different companies in assisting them to launch an ICO and also helping them to design their governance structure. The accounting firm also helps companies to identify and verify customers through KYC procedures. It also looks after complying with the best practices as well following regulations for anti-money laundering procedures.
Due to its murkier track record in the past six months, there has been a lot of pessimism for ICOs in the market recently and investors are less willing to put their money in this. Moreover, as on date, there are absolutely no accounting standards for ICOs that can provide a safety net to investors. Introducing such analytics tools it is expected that the confidence of investors can revive again in the future, as the tools will help customers track their digital assets and many other potential fraudulent ICOs will soon come in the limelight.