Token Due Diligence

If you are looking to offer a new virtual asset to your client base, it is your responsibility to mitigate the risks to your business and your clients that come with a new token or coin. This can be especially difficult in a time where new coins and tokens are created almost daily, and some of these new projects can post astronomical gains and drive massive hype. It is imperative to your reputation that you are looking past the hype and confirming that this product is safe to offer.

AML Incubator will provide you with thorough and actionable token due diligence reports, where we check the credibility, transparency, security, and regulatory aspects of a new project. These reports will provide a deep dive into a virtual asset to help you fully understand if this asset is in your risk profile.

The content we investigate is based on your needs and what is applicable to the token, contract, or coin that you are interested in learning about. Here is a general outline of what we investigate and include in our reports

Technical Investigation

  • Understand the project white-paper and develop and understanding of the project goals and intentions
  • Provide insight to the distribution model; how funds were raised and how tokens or coins are distributed
  • Investigate the contract, ensuring there are no known vulnerabilities or malicious code that can be exploited by hackers

Governance and Ownership

  • Understand how fairly the token was distributed and if there are any red flags in the current ownership structure
  • Understand the governance model if applicable, and how voting or consensus works within this project

Team Audit

  • Investigate the reputation of the project owners and creators
  • Investigate the reputation of the community managers and public relations team

Community Insights

  • Understand the various tools used to communicate with the community
  • Provide data on the community following and engagement through each medium of communication

Regulatory and Legal Compliance

  • Check on where the token/coin was offered, and if this offering violates any laws or regulations around such offerings
  • Investigate if this offering is in direct violation of any Anti-Terrorist financing or Sanctions regulations.

Final Opinion

At the end of this report, we will offer our final opinion. This opinion will take all of the above into account, and give a summary of the risk profile of this new coin, token, or project.