Cryptocurrency Creators Prefer to Remain Anonymous

Introduction

Alexander Stactenko, a cryptocurrency expert at KPMG, says, “Using a pseudonym doesn’t make you anonymous.” Although the founders of “bored monkeys” want to hide their identity in the crypto world, they own a company called “Yoga Laboratory.”

Hence, they must follow all the usual rules in company filings, including revealing the identity of the beneficial owners. Despite pseudonyms and avoiding the limelight, Gargamel and Gordon Gunner built a multimillion-dollar empire to sell digital art, and people sought to know who they were.

They founded the Bored Monkey Yacht Club, a collection of 10,000 monkey caricatures with different hairstyles and costumes. They sold these images as digital icons (NFTs), and it’s now hard to get one for less than $280,000, thanks partly to approvals from celebrities like Paris Hilton and Serena Williams.

The US news source BuzzFeed investigated the matter. It revealed their true identity, sparking a wave of anger among fans on social media, who expressed their indignation at this violation of personal life and spread it to everyone. This story re-highlighted the theme of anonymity in the world of cryptocurrencies.

Risk of Theft in cryptocurrency

We don’t know precisely why the founders of the “bored monkeys” wanted to hide their identity, as they conducted several interviews under pseudonyms. Critics argue that hiding a person’s identity from digital tokens is expected because what they sell is worthless, even though fans enjoy being part of a society where ownership of digital tokens is often a gateway to games and other entertainment franchises.

However, anyone who makes a fortune in this area will remain the focus of attention.
An innovator who calls himself OwlofMoistness says, “I don’t need cryptocurrency users to know who I am, how I look, or how I look. I don’t want to risk people stealing me or hurting my family.”

The innovator co-founded YieldGuildGames. A startup focused on digital code video games in the Philippines, where the digital code craze has spread among the population. He also pointed out that the technology that supports cryptocurrencies and digital tokens is the so-called blockchain, the ledger, where anyone can track transactions in the crypto world.

So linking someone’s encrypted identity to the real world will allow anyone else to discover their wealth. The larger the project, the more difficult it will be to anonymize in the cryptographic world. Sona Amhaz of VoltCapital, a cryptocurrency company, says, “It gets harder if you expand your team.”

The Best Way to Cryptocurrency

One of the preferred ways to remain anonymous in the crypto world is to form an “independent, decentralized organization” (DAO).

The organization allows people to collaborate and work as a company without formal legal status or specific owners. Of course, anyone who makes profits will still be committed to paying taxes, but connecting real-world individuals to these entities is much more challenging than searching public records.
However, many people use anonymity for nefarious purposes. The organization and other decentralized entities are highly vulnerable to fraud.

According to analysis firm Chainalysis, AnubisDAO was one such fraudulent entity created by anonymous programmers last October, disappeared less than a day after its launch, and has about $60 million in investor funds. So it seems the mainstream is turning against anonymity in the crypto world.

Conclusion

Most large cryptocurrency exchanges now require identity checks to combat this fraud. However, Amhaz believes that there are positives to the idea of “organization”, as it is subject to blockchain control, so anyone can track the organization’s transactions and see if they are legitimate or suspicious. “If you have a pseudonym, it doesn’t matter if you don’t receive a high-end education. Only your business is the way to evaluate you, giving you your reputation. That’s one of the best ways to evaluate someone.”