KuCoin Pinocchio Project aims to bring together various blockchains and create a standard to eradicate dishonest behaviors. The IDG-based exchange, KuCoin, stated that Project Pinocchio will be a joint effort by 21 leading blockchain institutions across the world to introduce more transparency in the system.
There are many fraudulent and untrustworthy projects in the crypto realm. KuCoin Pinocchio Project is a neutral platform to find and report crypto projects with less credibility quotient so that vulnerable investors have the right information. A crypto reporting system will be set up to help avoid malicious behavioral practices. Some common malignant methods include illicit fundraising and contract breaches.
Kucoin Pinocchio Project to serve as a credibility barometer
Kucoin Pinocchio Project will not only help create a fair understanding of the crypto assets but also contribute towards creating a standard that new investors can rely upon. A transparent business environment will further help lay down the foundation of a whole crypto industry filled with high credibility digital assets.
It is the need of the hour to bring in additional transparency in the cryptocurrency industry. The rising number of scams are tarnishing the image of digital currencies. KuCoin Pinocchio Project will feature a ‘Pinocchio Index’ that will serve as a ‘De Facto’ evaluation benchmark for the assets. The participants will use it as a barometer for legal compliance and other regulatory compliances. Complete information pertaining to the crypto asset or project will be available on-chain through blockchain technology. Eventually, a DApp will be launched that will provide suitable access to the information to the members.
The chief executive officer at KuCoin, Johnny Lyu, said that a new credit infrastructure would be beneficial for the whole cryptocurrency industry. It will promote the integrity and orderly growth of the industry. It will encourage innovation across the digital currency spectrum.