BEIJING, Feb. 15, 2024 /PRNewswire/ -- WiMi Hologram Cloud Inc. (NASDAQ: WIMI) ("WiMi" or the "Company"), a leading global Hologram Augmented Reality ("AR") Technology provider, today announced that a technology based on the K-Means algorithm has recently been developed to improve the security and user trust of bitcoin trading platforms. The technology, based on the best set of features from real recorded data, identifies potentially fraudulent users by performing an in-depth analysis of user behavior on Bitcoin exchange websites, with a special focus on key metrics.

The K-Means algorithm is an unsupervised learning clustering algorithm that effectively identifies anomalous users by grouping them by the similarity of their features. Some users show significantly different patterns of transaction behavior than others, making the use of the K-Means clustering algorithm ideal for solving this problem.

Unlike traditional supervised learning methods, WiMi's K-Means algorithm for identifying fraudulent users on the Bitcoin trading platform learns and classifies without the need for pre-labeled data, making it perform much better when dealing with large-scale data. The technology not only efficiently identifies fraudulent users, but also automatically adjusts the model to respond to those changing fraud tactics, further improving the security of the trading platform. The main steps of the technology include:

Data collection and preparation: First of all, the data model collects a large amount of transaction data, including the number of transactions, transaction amount, transaction frequency, etc. These data will be used as input for the K-Means algorithm.

Feature selection: Among the collected data, the most representative features are selected, and these features will be used to determine whether the user has fraudulent behavior.

Data pre-processing: Pre-processing the collected data including operations such as handling missing values, outliers and normalization to ensure data quality and consistency. This helps to improve the stability and accuracy of the K-Means algorithm.

K-Means algorithm: The pre-processed data is fed into the K-Means clustering algorithm. This algorithm divides the users in the dataset into K clusters, making the users within each cluster more similar and the users between different clusters less similar.

Abnormal user identification: The clustering results of the K-Means algorithm are analyzed to identify the clusters where users with abnormal behavior are located. These users may exhibit transaction patterns that are significantly different from other users, and thus are considered as potentially fraudulent users.

Model evaluation and tuning: The performance of the algorithm is evaluated. Based on the evaluation results, the algorithm is adjusted, which may require re-selecting features, adjusting K-values, etc., to improve the accuracy of the algorithm.

Real-time monitoring and application: The trained K-Means model is deployed to the Bitcoin trading platform to monitor users' transaction behavior. When new transaction data is generated, the algorithm will quickly identify potentially fraudulent users and take appropriate security measures, such as sending alerts and freezing accounts.

Feedback: Continuously collect and integrate new data and update the model to adapt to the ever-changing means of fraud. Establishing an effective feedback mechanism enables the system to continuously learn and optimize to improve its ability to identify new types of fraud.

Through the above steps, the technology can realize accurate identification and timely response to fraudulent users on Bitcoin trading platforms, providing users with a more secure and reliable trading environment. The application prospect of this technology is to improve the security of the Bitcoin virtual currency trading platform, and effectively identify and prevent fraudulent behavior, thus enhancing user trust and the sustainable development of the platform. Through the application of the K-Means algorithm, Bitcoin trading platforms can identify potential fraudulent users in real-time. This will enable the platform to quickly take preventive measures to stop fraudulent behavior.

WiMi's K-Means Algorithm for identifying fraudulent users on Bitcoin trading platforms through in-depth analysis of user behavior, platforms can obtain more information about users and understand their trading habits, preferences, and behavioral patterns. This data helps platforms optimize operational strategies and provide more personalized services to better meet user needs.

By establishing an effective feedback mechanism and regularly updating the model, the platform can continuously improve the technology, respond to new types of fraudulent behavior promptly, and maintain a high degree of vigilance against security risks.

WiMi's K-Means algorithm technology is not only able to identify potential fraud, and improve the security of the platform and user trust, but also has a great competitive advantage in the market. By continuously optimizing the algorithm and fulfilling regulatory compliance requirements, the enterprise has injected a healthier and more credible development momentum into the digital currency market. This innovation marks a solid step towards a more secure and efficient future for digital currency trading platforms.

About WIMI Hologram Cloud
WIMI Hologram Cloud, Inc. (NASDAQ:WIMI) is a holographic cloud comprehensive technical solution provider that focuses on professional areas including holographic AR automotive HUD software, 3D holographic pulse LiDAR, head-mounted light field holographic equipment, holographic semiconductor, holographic cloud software, holographic car navigation and others. Its services and holographic AR technologies include holographic AR automotive application, 3D holographic pulse LiDAR technology, holographic vision semiconductor technology, holographic software development, holographic AR advertising technology, holographic AR entertainment technology, holographic ARSDK payment, interactive holographic communication and other holographic AR technologies.

Safe Harbor Statements
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Further information regarding these and other risks is included in the Company's annual report on Form 20-F and the current report on Form 6-K and other documents filed with the SEC. All information provided in this press release is as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement except as required under applicable laws.

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SOURCE WiMi Hologram Cloud Inc.

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