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Blockchain transparency allows investors to access data about transactions, wallet addresses, and token distributions, helping to verify the legitimacy of a cryptocurrency project. By analyzing transaction history, investors can confirm whether funds are being used as promised and track the distribution of tokens to ensure no centralization or manipulation. A transparent blockchain helps to identify potential scams or mismanagement early, as irregularities, such as sudden large transactions or centralized token holdings, are easily spotted. Transparency builds trust and reduces the risk of fraudulent projects.
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