Formulate Hypothesis: Problem Statement
Objective
Develop an initial thesis and problem statement grounded in field research that explains why digital asset loss persists and how a human-centered, self-custodial vault like K33P can address it sustainably.
Building the Hypothesis
Based on Our Research
This problem directly threatens the financial resilience of emerging digital communities, especially in Nigeria and Africa at large.
In a nutshell, the crypto and digital assets growth is thriving, but more so is the loss. It is a real, urgent grassroots problem, not theoretical.
Key Insights that Inform Our Hypothesis
Key Insight 1:
Wallet loss is not caused by user negligence but by self-custody systems that are not designed for real human behavior at scale.
Key Insight 2:
Users prioritize avoiding accidental loss over preventing hacking, yet current tools force them into fragile, manual storage practices.
Key Insight 3:
The lack of secure, privacy-preserving recovery mechanisms leads to permanent wealth loss and pushes users back toward centralized platforms.
Problem Statement
The Problem (Draft 1)
Millions of crypto users, particularly in Nigeria and across Africa, lose access to their digital assets because self-custody systems rely on static seed phrases and manual storage methods that are fragile, impractical, and incompatible with everyday life.
Target audience: Crypto users, new adopters, small business owners, students, freelancers, and Web3 participants
Geographic scope: Nigeria, with broader relevance across African and emerging digital economies
Scale: Millions of users globally; locally reflected by 18% of surveyed users having already lost funds
The Problem (Refined)
As crypto adoption grows, especially as a financial tool rather than speculation, self-custody failures are creating irreversible asset loss, eroding trust, and excluding non-technical users from safely participating in the decentralized economy.
Final Problem Statement
Crypto users, particularly in Nigeria and other emerging markets, are losing digital assets at scale because existing self-custody solutions depend on fragile seed phrase management that is not designed for adoption, human-friendly recovery, resulting in permanent financial loss and weakened trust in decentralized systems.
Hypothesis Statement
Our Hypothesis
We believe that crypto users and digital asset holders in Nigeria and similar emerging markets
face frequent asset loss and exclusion from self-custody systems
because current wallet designs rely on static seed phrases and assume perfect human behavior with no recovery tolerance,
and if we provide a zero-trust, identity-bound, self-custodial digital vault with privacy preserving recovery and inheritance flows,
then users can securely store, recover, and retain access to their assets over time,
which will result in reduced asset loss, increased confidence in self-custody, and broader, long-term participation in the blockchain economy.
Hypothesis Example
Our solution is designed to reduce loss, improve security, and lower the technical barrier that keeps many people excluded from safely using self-custodial systems. By offering a secure, privacy-preserving recovery flow (without relying on seed phrases), K33P addresses the systemic failure in digital ownership by restoring safety, continuity, and trust to self-custody for everyday people.
Assumptions to Test
Assumption 1
Users will trust a self-custodial vault that removes manual seed phrase handling if privacy and control are preserved.
- How to test: Early-access pilots and trust perception surveys
- Risk if wrong: Low adoption despite technical robustness
Assumption 2
Reducing recovery anxiety will increase long-term user retention and self-custody usage.
- How to test: Retention and recovery success tracking over time
- Risk if wrong: Users may still prefer custodial solutions
Assumption 3
Identity-bound, zero-trust recovery can meet both user expectations and regulatory realities.
- How to test: Technical audits and compliance reviews
- Risk if wrong: Limited scalability or regulatory friction
Success Criteria
Quantitative Metrics
- Convert 10% of K33P users to premium
- Onboarding completion rate on 5,000 users
- 60% of users actively storing multiple sensitive items in K33P
Qualitative Indicators
- Users report feeling safer and more confident managing self-custody
- Increased willingness to recommend self-custody tools to others
- Positive community sentiment around long-term ownership and inheritance
Constraints & Limitations
Known Constraints
- Time: Hackathon and early-stage build timelines
- Resources: Small core team and limited infrastructure
- Technical: Balancing privacy, recovery, and zero-trust architecture
- Regulatory: Data protection and identity considerations across jurisdictions
Scope Boundaries
Out of scope for this project:
- Custodial wallet services
- Speculative trading features
- Replacing existing wallets or acting as an exchange
K33P is not just optimizing onboarding, it is addressing a systemic failure in digital ownership by restoring safety, continuity, and trust to self-custody for everyday people.
Next Steps
Proceed to Define Opportunity to explore multiple solution approaches.