World Liberty Financial Gets 'DDD' Grade
World Liberty Financial Gets 'DDD' Grade
World Liberty Financial, a Trump family crypto project, received a DDD rating from CORE3, a new crypto risk rating firm. This rating indicates a high probability of loss, with a score of 68.01.
CORE3 Risk Rating System
CORE3 aims to push DeFi protocols, centralized exchanges, and crypto firms to increase transparency and security by assessing them on the probability of user fund loss. The firm has assigned numerical risk ratings to 1,426 crypto projects and 253 exchanges based on publicly available data.
How CORE3 Works
CORE3's scoring system is completely public, allowing anyone to see why projects received their scores. The firm will also reach out to projects to request more information, which can help change their risk scores.
World Liberty Financial's Risks
World Liberty Financial's DDD grade is due to several top risks, including a lack of continuous on-chain monitoring, which raises the chance of a delayed response to security incidents. The project also lacks a structured bug bounty program, reducing proactive vulnerability discovery.
Token Structure Risks
The project's token structure, where insiders own the majority of tokens, is another major risk. This concentration of ownership can lead to 51% attacks and other security threats.
Industry Reaction and Institutional Interest
CORE3's launch comes as traditional finance firms look to invest in the crypto industry. Many crypto firms need more risk profiling to feel comfortable investing, which is the need that CORE3 is attempting to fill. As Dyma Budorin, CEO of HAI Group, said, "We need to put pressure on them" to increase transparency and security.
Key Takeaways
- World Liberty Financial received a DDD rating from CORE3, indicating a high probability of loss.
- CORE3's risk rating system is based on publicly available data and is completely public.
- The firm has assigned ratings to 1,426 crypto projects and 253 exchanges.
- World Liberty Financial's risks include a lack of on-chain monitoring and a concentrated token structure.
Frequently Asked Questions
What is CORE3's risk rating system based on?
CORE3's risk rating system is based on publicly available data, including factors such as on-chain monitoring and token structure.
How can crypto projects improve their risk scores?
Crypto projects can submit more information to CORE3 to change their risk scores. The firm will also reach out to projects to request more information.
