SoftBank-backed Aleo's new study shows hardly anyone trusts crypto with privacy

Aleo has published a new study finding a majority of consumers want products and technological solutions that are committed to protecting user data, but barely anyone has faith in crypto firms.

The study found that 67% of consumers would switch to products that offer data protection. Aleo said it also discovered the majority of people, regardless of age, are worried about their privacy. But only 10% of respondents expressed "a great deal of
 trust" in crypto companies.

Of those polled, 14%said they had a "fair amount" of trust in blockchain-based organizations.

"The lack of trust in cryptocurrency companies regarding data privacy and security, despite the foundational role of cryptography and blockchain in enhancing these aspects, is a paradox rooted in the industry's rapid evolution and its associated challenges," Aleo Ventures Chief Strategy Officer Leena Im told The Block. "This ironic situation arises from the industry's growing pains, where the decentralized nature of blockchain, while promising privacy and security, has also attracted bad actors who have exploited vulnerabilities, thereby eroding trust."

The study appears to prove Aleo's core mission. The organization announced in January it was close to launching its mainnet, once some final bugs had been resolved. At the time, the organization said it aims to bring enhanced privacy to crypto and it plans to unlock use-cases around confidential payments and identity solutions. 

For its study, Aleo said it polled about 2,200 people and its results have a margin of error of plus or minus 2%. The study was conducted in October 2023.

"The decision to delay the report's publication until now was deliberate, aiming to craft an analysis that resonates and is meaningful, without succumbing to the pressure of rushing its release," said Im, who previously worked in Meta's payments and blockchain division.

Backed by SoftBank Vision Fund 2 and a16z

Aleo uses zero-knowledge proofs at the core blockchain level to support transactions and smart contract interactions that are private by default. In 2022, the project raised $200 million in a Series B funding round co-led by SoftBank Vision Fund 2 and Kora Management. Tiger Global, a16z, Samsung Next, Slow Ventures, and Sea Capital also participated.

At the time, the new raise gave Aleo a valuation of $1.45 billion.