The Web3 event in Seoul, South Korea focuses on stablecoin security: Experts advocate for comprehensive risk response strategies.

Recently, a blockchain conference focusing on the cutting-edge trends of Web3 was held in Seoul, South Korea. As an important annual event in the country's Web3 field, this conference attracted numerous entrepreneurs, institutions, and investors to participate, engaging in in-depth discussions around hot topics such as DePIN, security tokens, stablecoins, accomplice, DAO, and more.

During the main forum session, an audit partner from a security company delivered a speech themed "Enhancing the Safety Journey of Emerging Tracks", focusing on the positioning of stablecoins and accomplice services in the financial landscape and risk management.

The expert pointed out: "Security is not only a defensive measure but also the core infrastructure that connects traditional finance with digital assets. In the face of emerging fields, it is essential to layout in advance and actively respond to potential risks."

In his speech, he defined stablecoins as "digital tokens designed to maintain stable value" and elaborated on their diverse structures, including fiat-backed, cash-collateralized, physical asset-backed, and algorithmically driven types. Each type faces unique security challenges and requires targeted risk management strategies.

Regarding the issuance and circulation mechanism of stablecoins, he explained: "Reserve assets are typically held in trusted financial institutions, such as banks, and are issued through smart contracts, then circulated to the market via exchanges and financial institutions." In light of the rapid expansion of the stablecoin market, he emphasized that we are currently in a critical period where precise identification and systematic response to its potential risks are necessary.

The expert summarizes the main risks of stablecoins into three categories: reserve risk, operational risk, and on-chain risk. He suggests building a comprehensive security response system that includes reserve proof, smart contract audits, governance mechanism audits, Blockchain reliability verification, and circulation monitoring.

In addition, he reviewed the significant events related to stablecoins over the past decade (2014~2024). According to statistics, there have been a total of 24 publicly disclosed major incidents, covering various types such as contract or on-chain vulnerability attacks, de-pegging events, and pegging failures caused by regulatory or liquidity issues. He emphasized: "We must keep pace with industry developments, ensuring that regulatory and security systems evolve in sync, not lagging behind the speed of market growth."

In the face of frequent stablecoin risk events, global regulatory agencies are accelerating the development of relevant frameworks. Financial regulatory agencies in multiple countries and regions have issued compliance guidance documents for stablecoins, focusing on core issues such as user protection, legal statements, and financial risk prevention. Industry security companies are also actively participating, maintaining close cooperation with regulatory agencies, and timely sharing relevant insights to support the steady advancement of industry compliance processes.

The expert also introduced a case study of an internal simulation research project called "Chocolate Coin." This is a standard stablecoin model designed based on the ERC-20 standard, covering complete components such as smart contracts, white papers, risk management policies, and redemption mechanisms, aiming to provide a practical reference for global regulators and practitioners to verify risk factors and policy feasibility.

In the field of custody security, he shared a case study of a client project. The project provides a comprehensive security assessment and consulting service covering various threats that may arise at all stages of private key generation, storage, recovery, and usage, including penetration testing, source code review, and custody solution architecture assessment, forming an integrated service package. This package has also been submitted as compliance materials to relevant regulatory agencies and used by several core clients.

It is understood that the theme of this blockchain conference focuses on investment practices, emphasizing projects that truly possess feasibility, profitability, and a real user base, highlighting the genuine value and market adaptability of projects. The conference invited blockchain experts, DAO organizers, practical investors, researchers, and traders from around the world to provide high-quality insights from an investor's perspective. The event also includes interactive sessions such as a project showcase area, custody security demonstrations, and offline communication, providing community members and individual investors with a platform to understand and engage with quality Web3 projects.