A phenomenon has emerged in the community—everyone is tracking large wallet addresses. Since on-chain analysis platforms have become popular, no large transfer escapes public attention. For institutions and high-net-worth individuals who truly control significant assets, this complete "visibility" poses a real threat.



Imagine your asset allocation, every loan and collateral position laid bare to competitors. This is not only a privacy issue but also a security risk in reality. For this reason, many institutional investors remain cautious about large-scale participation in Web3—they are concerned about this unavoidable exposure.

Some projects have identified this gap in demand. Their approach is straightforward: in a decentralized world, wealth should not be a transparent stage play but should remain silent.

Compare this with the current state of traditional DeFi. On Ethereum, your liquidation price and position size are visible to everyone. When the market drops, professional short-selling institutions will target positions close to liquidation, concentrate their sell-offs to trigger liquidations—this "sniping" game has been repeated many times. But what if trading and position data are hidden? Hunting strategies based on public coordinates would become completely ineffective.

Using privacy technologies like zero-knowledge proofs, users' collateral ratios and position sizes become a complete black box to outsiders. Without public "target coordinates," institutions attempting to harvest data by monitoring on-chain activity will have nowhere to start. This design reflects a long-overlooked real need: in Web3, protecting wealth privacy may be more aligned with real-world operational logic than complete transparency.
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MemeCoinSavantvip
· 18h ago
ngl the whole "transparency = security" thesis is cracking rn... if whales can get sniped that easily maybe the real move is staying invisible fr fr
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SmartContractPhobiavip
· 18h ago
To be honest, this is a dead loop. Transparency is the selling point of Web3, but large investors are hesitant to enter because of the lack of privacy? Sniping is indeed annoying, but if everything is completely private, who will regulate those rug pulls... Privacy technology needs to become popular, otherwise institutions really can't get involved. This logic can only work if zero-knowledge proofs and similar solutions are reliable. It feels like Fortnite, where everyone can see you on the map, so the top players naturally prefer to play on private servers that can't be tracked.
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ReverseFOMOguyvip
· 18h ago
To be honest, I'm more concerned about when these sniping agencies will mess up.
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just_here_for_vibesvip
· 18h ago
Basically, it's just that big players are annoyed by being monitored, and now finally someone is offering an outlet. The set of sniper liquidation lines is indeed disgusting, but if privacy becomes a complete black box, how do you prevent internal leaks? Zero-knowledge proofs sound awesome, but actually implementing them is another matter. Someone should have done this a long time ago; transparency just sounds noble. Institutions don't dare to come in because they're afraid of being exposed; I get this point.
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LootboxPhobiavip
· 18h ago
Oh my god, this is why big players are using privacy coins. Transparency is basically suicide.
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