Thousands of business ventures have flooded the market and the fast-changing dynamics of the crypto market has made it difficult for the investors to pick the right choice for investing their money in the right initiative.
So the major question which pops in the mind of an investor is the matter of reliability and the factor of credibility. The terms like accreditation, adherence to standards, user feedback and reviews, financial audits and opinions would come to play here and the investor would thoroughly investigate every aspect before reaching to a conclusion.
When it comes to building trust and partnerships, there are many perspectives one can opt for and assessments from an independent and a dependable third party auditor on the organization can provide a large degree of assurance to its users.
Initial Coin Offerings (ICOs) also promise huge benefits to its customers. An unregulated means of fund raising that has gained popularity in the recent past, ICO are similar to the IPOs where a stake of the new business venture for raising money for the entity.
Why is Auditing and Assessment necessary in blockchain?
A survey conducted in January suggested that there were 1384 alternative coins and the number was constantly growing. This has also resulted in the diverse utilization of cases and benefits of the technology which has the potential of affecting many individuals and the way of conducting of their business.
Security for ICO and cryptocurrencies is yet to gain the pace at which the ICOs are growing. Several cyberattacks have led to derailment of the investors’ confidence in the cryptocurrencies. There aen’t many regulations etc for now. Companies try to seek unfair advantage from this and they lack security plans and implements. For saving the customers from any sort of unnecessary risk, many organizations offer audit services and assessments particularly on ICOs and the virtual currencies.
By implementing a secured environment, it provides confidence to the customers and investors for conducting business.