Nandar, a beautiful, passionate young artist in Myanmar, uses her imagination and artistic talent to develop rich, complex digital art. She aspires to escape the grip of poverty and hunger via her artistic endeavors. Out of necessity, she stumbles upon the world of NFTs—her ticket to finally getting paid for her unique art and sharing her work with a worldwide audience. Then, bam, out of nowhere that charming stranger she’s always dreamed of comes along online, spilling sweet nothings and developing a real-seeming rapport. He also hooks her up with a “guaranteed” crypto investment platform linked to NFTs and all that, complete with incredible returns. Nandar, believing in the growing partnership, pours in her life savings, only to see it all disappear overnight. Her dreams, her hopes, all butchered.

This isn't a hypothetical scenario. This has been a very hard and devastating reality for many other emerging artists from Southeast Asia who have fallen victim to these “pig butchering” scams. The broader Web3 community should step up to own this issue and help provide a solution.

Artists Targeted, Dreams Decimated, Why?

Why are emerging artists in Southeast Asia so especially at risk. It's a perfect storm of factors:

  • Financial Illiteracy: Exposure to sophisticated financial instruments like crypto is often limited, making them susceptible to scams promising quick riches.
  • Desperation and Hope: The desire to escape poverty and achieve financial independence fuels their willingness to take risks.
  • Cultural Trust: In many Southeast Asian cultures, there's a strong emphasis on trust and building relationships, which scammers exploit ruthlessly.
  • Limited Resources: They lack access to legal and financial advice, making them easy prey.
  • Social Media Usage: High rates of social media usage, coupled with a growing interest in crypto, create a fertile ground for these scams to flourish.

US Secret Service has taken over web domains such as NFT-UNI.com, used in scamming victims out of more than $4.5 million! Though this is a great development, it remains a reactive approach. We need more proactive solutions, and this is where Web3 is able to come into play. In fact, the FBI’s Internet Crime Complaint Center received reports of investment scams leading to more than $3.3 billion in losses in 2022. This year’s shocking figure underscores the urgent nature of this crisis and the need for strong action. The current centralized systems are failing.

Web3: A Shield, Not a Sword?

Even Web3 — which has promised to be a radical space driven by values of decentralization and empowerment — has made new paths for bad actors to exploit. The combination of anonymity and borderless nature of crypto complicates any efforts to track and prosecute scammers. Here’s the good news— the same technology that makes these scams possible can help keep vulnerable artists safe from this kind of exploitation.

These aren't just pie-in-the-sky ideas. They’re tangible solutions that can actually be constructed today with the current state of Web3 technologies.

  • Decentralized Identity (DID): Imagine a DID system that verifies the legitimacy of crypto investment platforms and flags suspicious activity. Artists could easily check the credentials of any platform before investing.
  • Smart Contract Escrows: Instead of directly transferring funds to a platform, artists could use smart contract escrows that release funds only when pre-defined conditions are met. This would protect them from rug pulls and exit scams.
  • Community-Based Education: Forget jargon-filled white papers. We need educational resources in local languages, explaining the risks and rewards of crypto investing in simple, accessible terms. Nandar, and others like her, need to understand the technology before they trust it.
  • DAO-Powered Support Networks: Imagine a DAO dedicated to supporting emerging artists in Southeast Asia, providing mentorship, resources, and a safe space to share their experiences. This could be a powerful tool for preventing scams and providing support to victims.

We can’t wait for governments and regulatory bodies to address this issue. They are too frequently unresponsive and outgunned in technical know-how to respond to these scams. The onus is on all of us, the Web3 community.

Build, Educate, Protect, repeat!

Having experienced first-hand the amazing talent and potential of artists in Southeast Asia, I know this from personal experience, having organized hackathons and pushed the current blockchain adoption. They aren’t only victims, though; they are creators, innovators, and entrepreneurs who deserve our admiration and support. In order to do so, we must equip them with the understanding and resources to safeguard themselves from these trackers.

We cannot allow “pig butchering” scams to rob the creative ambitions of a new generation of Southeast Asia-based talent. We can all work together to harness the power of Web3 to create a more equitable and secure future for us all. So let’s make Web3 less of a sword, and more of a shield for those who stand to benefit from it the most. Their dreams depend on it.

Here's what you can do right now:

  1. Developers: Contribute to building decentralized identity solutions and smart contract escrow systems.
  2. Investors: Fund projects that are focused on educating and protecting vulnerable communities from crypto scams.
  3. Influencers: Use your platform to raise awareness about pig butchering scams and to promote safe crypto investing practices.
  4. Everyone: Share this article and start a conversation within your own network.

Let's not let "pig butchering" scams steal the dreams of emerging artists in Southeast Asia. Let's use the power of Web3 to build a more equitable and secure future for everyone. Let's turn Web3 from a potential sword into a shield for those who need it most. Their dreams depend on it.