Transparency can also hurt people.

In the on-chain world, every transaction is permanently recorded. Your position size, entry price, and exit timing are all exposed to the sunlight. This is a double-edged sword for retail investors — information symmetry is achieved, but it also means your strategies can be seen through by big players, making you a target for sniping.

Team configurations in games, liquidity deployment in DeFi, position changes on exchanges… these business decisions that should be kept confidential, in an overly transparent environment, become intelligence for opponents. The true strategic depth is diminished, and the market turns into a zero-sum game of information crushing.

The importance of privacy protection mechanisms thus becomes evident. Only by introducing controllable privacy at certain points can market participants have space to think and strategize, rather than being forced to reveal every move. This is not about opposing transparency, but about finding a balance between transparency and privacy — protecting the parts that truly need confidentiality while maintaining the market’s fundamental trust.